The head of Turkey's banking regulator resigned following the collapse of the funds
Nearly half a million investors have been affected by this crisis
The head of Turkey's banking regulator has resigned / Photo: John Wreford / Shutterstock.com
The head of Turkey’s banking regulator (BDDK), Şahap Kavcıoğlu, has resigned following allegations that the BDDK was involved in the country’s investment fund crisis. He announced this on the social media platform X on Wednesday, November 11. Kavcıoğlu himself has denied these allegations.
“In light of the allegations leveled against the Banking Regulation and Supervision Agency and against me in recent days, I have asked President Recep Tayyip Erdoğan to relieve me of my duties in order to prevent further damage to the agency,” Kavcıoğlu wrote. It is not yet known whether the Turkish president has accepted his resignation, according to Bloomberg.
Bloomberg notes that law enforcement authorities have not brought any official charges against Kavcıoğlu. The BDDK did not respond to the agency's request for comment.
"The BDDK has absolutely nothing to do with the investment fund scandal," Kavcıoğlu said in an interview with Turkish media that was published before his resignation was announced. Kavcıoğlu made this statement in response to allegations that he had allegedly invested money in investment funds implicated in the investigation or accepted bribes, Reuters notes.
Kavcıoğlu served as governor of the Central Bank of Turkey from 2021 to 2023, after which he became head of the banking regulator.
Context
The scandal surrounding the funds erupted in mid-September. At that time, several well-known management companies were unable to meet investors’ demands for redemption of their shares. Regulators then ordered the liquidation of 131 funds, affecting about half a million investors, and authorities arrested dozens of executives from financial companies. Over the past three years, the combined assets of these funds exceeded $20 billion, according to Reuters.
The investigation has implicated both politicians and executives of financial institutions. Among those arrested are the deputy chairman of Erdogan’s ruling Justice and Development Party, the CEO of the Istanbul Stock Exchange, the former CEO of the Takasbank securities depository, and the deputy chairman of the BDDK.
This article was AI-translated and verified by a human editor
