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# Turkey's banking watchdog chief resigns as fund probe reaches senior BDDK officials
- URL: https://www.theglobalbanker.com/turkeys-banking-watchdog-chief-resigns-as-fund-probe-reaches-senior-bddk-officials/
- Published: 2026-11-11T14:07:56.000Z
- Updated: 2026-11-11T14:07:56.000Z
- Description: Şahap Kavcıoğlu has asked the president to relieve him after allegations, which he denied, linking the agency to turmoil at investment funds that had reached more than $20 billion in assets.
- Author: TGB Editorial Team
- Tags: Executive Moves, Europe, #newsroom, #needs-photo

Şahap Kavcıoğlu, head of Türkiye's Banking Regulation and Supervision Agency (BDDK), said on Wednesday that he had submitted his resignation after allegations, which he denied, of the agency's links to the country's investment fund turmoil. "Following the recent allegations concerning the BDDK and myself, I have asked our president, Recep Tayyip Erdoğan, to relieve me of my duties to prevent further damage to our institution," Kavcıoğlu said in a statement on social media.

The opposition-aligned Sozcu newspaper cited him as denying allegations widely reported in Turkish media that he had money invested in investment funds under investigation or had taken bribes, and as saying that the BDDK had nothing to do with the fund crisis.

## FUNDS THAT GREW IN THREE YEARS

In September, several Turkish investment funds failed to meet investors' withdrawal and redemption requests. Regulators then ordered the liquidation of 131 funds managed by seven asset managers, after warnings by some that they could not meet redemption payments.

The funds had reached more than $20 billion in assets over just three years, as nearly half a million investors, including politicians, former officials and celebrities, sought high returns to offset a depreciating lira and high inflation.

Kavcıoğlu previously served as governor of the Central Bank of the Republic of Türkiye between 2021 and 2023\. The BDDK regulates banks and financial institutions, monitors capital adequacy and audits operational standards.

## AN INVESTIGATION THAT REACHES THE REGULATOR

Senior BDDK officials were detained over the weekend and then jailed pending trial as part of an investigation into capital market transactions involving investment funds. His announcement came as authorities arrested the former chief of Takasbank, the co-founder of an Islamic lender and the chairman of an advisory firm, according to the state-run Anadolu Agency.

Authorities have taken legal action against more than 460 people since the investigation began, and at least 120 suspects have been remanded in custody. The granting of banking licences to certain companies and groups mentioned in an investigation by the Istanbul Chief Public Prosecutor's Office has also become a subject of controversy.

## WHAT COMES NEXT FOR THE BDDK

Official decisions on the BDDK chairmanship and on upcoming changes in the economic management are expected to be announced by the executive branch. In his statement, Kavcıoğlu also thanked the president for entrusting him with his duties.

## THE TGB VIEW

[T.C. Ziraat Bankası](https://www.theglobalbanker.com/rankings-europe/) shows a return on equity of 25.0% for December 2025 in a company report. TGB notes that its Turkish lira figures, taken from BRSA accounts, are not adjusted for inflation, which inflates nominal returns.