Merger of Banks Under Turkish Law

The number of mergers and acquisitions has increased remarkably in the recent years due to stable economy and macroeconomic developments while finance and banking sector has been positively affected from such progress. Since the banking sector is regulated under special legislation, mainly the Banking Law No. 5411¹ (the "Banking Law"), which had replaced the Banks Law No. 4389², mergers and acquisitions in this sector are governed thereunder. In accordance with the Banking Law, the regulations issued by the Banking Regulation and Supervision Authority ("BRSA") under the Banks Law No. 4389 are to remain in force until secondary legislation is promulgated and therefore the Regulation Regarding Mergers and Acquisitions of Banks³ (the "Regulation"), which was issued under the Banks Law No. 4389, applies to mergers and acquisitions of banks until a new regulation is published by the BRSA.