Turkey says $18.3 billion fund liquidations won’t pressure Borsa Istanbul, minister says

# What happened Turkey's financial regulator ordered the liquidation of 131 investment funds managed by seven portfolio companies, representing about $18.3 billion in assets. The Capital Markets Board placed Isbank and Ziraat Bank in charge of carrying out the liquidations. The move followed a liquidity crunch that triggered steep falls in Turkey's main stock index earlier in the week.

# Official assessment

# Market impact so far Borsa-100 index (BIST-100) fell sharply during the sell-off but recovered some losses after the authorities stepped in. As of one trading update in the report, the index was down around 1.5% at 07:54 GMT, after closing 2.95% higher the previous day. Despite the rebound, the index remained about 8% lower than the prior Friday's close, recording its worst weekly performance since March 2025.

# Who's managing the liquidations Isbank and Ziraat Bank were named by the Capital Markets Board to oversee the liquidation process. The regulator's directive applies to 131 funds managed by seven portfolio companies. The move aims to manage the sell-off in an orderly way and limit spillover effects to the broader market.

# Policy response and next steps Simsek said the government sees a clear need for stricter rules in the non-bank finance sector. Authorities are working on new regulations targeted at that part of the financial system. Monitoring of markets will continue while the liquidation proceeds.

# Why this matters The liquidation affects a significant pool of fund assets and nearly half a million investors were reported in related coverage as holding stakes in such funds (see related reporting). A disorderly unwind of concentrated fund positions can spread price declines to listed equities and other asset classes, so the regulator's choices about how to manage redemptions and disposals will shape short-term market outcomes.

# What to watch next

• Progress and timing of the fund liquidations supervised by Isbank and Ziraat Bank.
• Any detailed rule changes proposed for the non-bank finance sector.
• Daily moves in the BIST-100 and whether volatility eases after intervention.

# Bottom line Authorities have moved to contain a liquidity-driven sell-off by ordering the liquidation of funds and assigning state-linked banks to manage the process. The finance minister characterises the situation as confined and manageable, while signalling regulatory tightening for the non-bank finance sector to reduce similar risks in future.