BDDK President addresses İktisat Katılım Bankası license and TMSF transfers

Banking Regulation and Supervision Agency (BDDK) President Şahap Kavcıoğlu addressed the status of İktisat Katılım Bankası and other financial institutions transferred to the Savings Deposit Insurance Fund (TMSF) during a meeting with the Grand National Assembly of Turkey's Plan and Budget Commission.

Kavcıoğlu stated that while İktisat Katılım Bankası received establishment approval in December 2024 and applied for operational permission on August 3, its license to begin banking activities and open accounts has been held in suspense as a precautionary measure due to recent developments in the fund market. He emphasized that because the bank has not yet commenced operations, there is no risk to the public.

Regarding companies transferred to the TMSF, such as Tera, Destek, and Hedef groups, Kavcıoğlu noted that their assets in certain factoring companies exceed their liabilities. Rather than proceeding with liquidation, the agency prefers to preserve their economic value through sales. He suggested that selling these entities could help recover a portion of the losses suffered by individuals affected by fund transactions. He estimated the value of institutions with completed banking infrastructure and system connections could be between $60 million and $70 million.