Turkish jewellery industry to establish own bank

Turkey’s jewellery companies will establish their own bank this year to help resolve the financial problems of the industry such as obtaining loans, the Dünya newspaper reported on Monday.

Altınbank, or ‘Gold Bank’, will be established by Turkey’s 40,000 jewellery businesses, said Mustafa Atayık, head of the Istanbul Chamber of Jewellers (IKO), according to Dünya.

“Altınbank will be the locomotive of gold banking. All our sector stakeholders will be able to become partners of the bank,” he said. “The bank will take a different approach in the development of sector-specific loan mechanisms. Export-oriented companies will be able to obtain easy loans… Our factories, and especially our small-scale workshops and craftsmen, will be actively supported.”

The IKO has reached an important stage in discussions with the Savings Deposit Insurance Fund (TMSF) and the Banking Regulation and Supervision Agency (BDDK), Atayık said. The bank will be established under the leadership of the IKO, he said.

Altınbank will also help bring gold from ‘under the pillow’ into the financial system, he said.  

“Physical delivery and storage centres will provide advanced physical transfer opportunities in the sector, thus enabling the implementation of an unprecedented system in our country, perhaps in the world,” Atayık said.

Precious metal deposits will be used as a source of loans, with depositors receiving a small return, he said.

"Precious metals collected from depositors will be awarded a dividend to be paid from the amount received from their crediting,” Atayık said. “In other words, gold deposit account holders will be provided with a small but additional income for the first time in Turkey and perhaps in the world."

He said that the establishment of the bank and its financial mechanisms will reduce gold imports by bringing investment-type gold to the people and institutions.

“We believe that Altınbank will be a pioneer in meeting the credit and financial needs of the sector members, as well as bringing gold under the pillow into the economy,” Atayık said, Dünya reported.

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