Turkish banking regulatory and TMSF interventions

The Turkish Banking Regulation and Supervision Agency (BDDK) and the Savings Deposit Insurance Fund (TMSF) have taken significant actions regarding several financial institutions.

Following sanctions by the U.S. Treasury’s Office of Foreign Assets Control (OFAC) alleging that Golden Global Yatırım Bankası facilitated transactions for the Iranian Revolutionary Guard Corps Quds Force, the BDDK transferred the management of partnership rights for 99.98% of the bank's shares to the TMSF. This move was prompted by liquidity issues that prevented the bank from functioning within the banking system. The bank was subsequently removed from the SWIFT and EFT systems, though Turkish Treasury and Finance Minister Mehmet Şimşek noted the affected assets represent only 0.06% of the total banking system.

In separate developments, the BDDK has held the operational license of İktisat Katılım Bankası in suspense as a precautionary measure due to fund market developments. Additionally, regarding the transfer of various groups to the TMSF, BDDK President Şahap Kavcıoğlu indicated a preference for selling assets rather than proceeding with liquidation to preserve economic value and recover losses for affected individuals. He estimated the value of institutions with completed banking infrastructure to be between $60 million and $70 million.