Turkey Banking Chief Resigns Amid Investment Fund Crisis

The chairman of Turkey's Banking Regulation and Supervision Agency (BDDK), Sahap Kavcioglu, submitted his resignation to President Recep Tayyip Erdogan on Wednesday. Kavcioglu stepped down following allegations linking the agency to a national investment fund crisis, though he denied taking bribes or holding investments in the funds under investigation.

The resignation follows the detention and jailing of senior BDDK officials over the weekend as part of a probe into capital market transactions. The broader crisis began in September when regulators ordered the liquidation of 131 funds managed by seven asset managers after warnings that the funds could not meet redemption payments.

These funds grew to over $20 billion in assets over three years, attracting nearly half a million investors who used the vehicles to hedge against high inflation and a depreciating lira.