He has long been engaged in commerce and is one of the leading business men of Kayseri. Cıngıllıoğlu familyIt stood out at the time for its building materials and hardware store.

In the 1950s, the Turkish economy attempted to grow under the leadership of the private sector. Access to loans became easier and business growth accelerated. For example, in 1953, under the leadership of Nuri Cıngıllıoğlu, with 79 partners, mainly blacksmiths, Demirbank was founded.

Demirbank starts to grow at a steady pace after its foundation.

Demirbank, which opened its first branch in Istanbul in the 1960s increases the number of branches.

Of course, this is also one of the founders by Nuri Cıngıllıoğlu It is known that he made a great effort.

Demirbank, which managed to become a very effective bank in the iron sector, invested in various sectors and provided capital in the 1970s. tries to expand its field of activity.

But After the coup in the 80s Major decisions that will affect the banking industry will also have a significant impact on the future of the bank.

The opening of the Turkish economy and the beginning of liberalization increase competition, and this also affects Demirbank.

Increasing competition with the relaxation of strict controls and the release of supervised interest rates in the banking industry makes Demirbank in a dominant position faces serious competition to leave.

In 1988, Halit Cıngıllıoğlu became the head of Demirbank and period of rapid growth of the bank starting.

In the 1990s, Demirbank became one of the largest banks in Turkey and had almost 200 branches in 2000. The 5th largest bank in Turkey knows to be.

However, in those years, problems in the Turkish economy and variability in interest rates emerged.

The variability in rates is for investors who see the opportunity here. both a high risk and a high return resources.

Halit Cıngıllıoğlu, who saw this opportunity and accepted the risk, invested in these instruments within the bank. a large portfolio of bills and bonds It creates.

In those years, Under the influence of the agreements that Turkey has made with the IMF Major changes are taking place in the economy, and Demirbank, having invested in the right instruments, is taking advantage of these changes, which will later turn out to be very bad.

In summary, Demirbank invests in bonds that generate high interest income. Before the 2001 crisis manages to make some pretty big profits.

In the early 2000s, changes took place in the unstable economy, to the detriment of Demirbank.

The rise in inflation and interest rates caused Demirbank’s huge bond and debenture portfolio. lose value causes.

Demirbank, which is constantly investing more in these instruments to prevent the inevitable end and keep prices in balance in this process. has further expanded its portfolio And it was literally a ticking time bomb.

In addition, both the spread of rumors that the bank was in difficulties and the deterioration of other banks’ conditions for granting loans to Demirbank caused the bank to liquidity crisis made sure it came in.

The excessive increase in interest rates both reduced the value of investments and increased financing costs.

The crisis that insidiously arose during this period took place before Demirbank. collapse of two banks took the initiative and caused this crisis even more.

For this reason, the bank can no longer survive Transferred to TMSF and this caused the collapse of other banks, resulting in one of the biggest crises in Turkiye’s history.

If it is Demirbank HSBC was bought by…

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