Türkiye: Bank supervisor resigns after stock market scandal

Istanbul. The head of the banking supervisory authority has resigned in the wake of a stock market scandal that is also affecting those close to Turkish President Recep Tayyip Erdogan. Sahap Kavcioglu said on He referred to recent allegations against the supervisory authority and himself.

Local media had previously reported, citing a member of Erdogan's ruling AKP party, that Kavcioglu, who had been head of the authority since 2023, was involved in alleged price manipulation.

The investment fund crisis has been affecting Turkey since mid-September. Suspected price manipulation had shaken the stock market, prompting the Turkish financial regulator to liquidate 131 funds. Around 455,000 investors are said to be affected, including many small investors. The Turkish authorities are investigating whether the fund valuations were artificially inflated and whether there were illegal agreements.

In this context, the Turkish president's long-time confidante and former family minister Fatma Betül Sayan Kaya was arrested last week. Sayan Kaya resigned as deputy chairwoman of the ruling AKP party after the stock market scandal and allegations from the opposition became known.