Türkiye rules out structural risk to Borsa Istanbul, vows action

The Financial Stability Committee convened Thursday under Treasury and Finance Minister Mehmet Şimşek to evaluate recent turbulence in Türkiye's capital markets, concluding that Borsa Istanbul operates without structural vulnerability. The body determined that recent volatility originated from credit and liquidity constraints affecting specific funds run by a restricted group of portfolio managers rather than systemic weaknesses.

Fund market strains

Officials characterized the disruption as confined to a narrow market segment, describing the situation as both temporary and controllable through targeted regulatory action. "There is no fundamental or structural risk concerning the functioning of Borsa Istanbul and our capital markets," the committee said. "The problem is concentrated in a specific segment of the fund market and is temporary and manageable," it added, noting that supervisory authorities retain full capacity to isolate the distress.

Regulatory intervention

The Treasury-led panel pledged to deploy swift measures designed primarily to alleviate liquidity constraints and prevent the problems from spreading to other parts of the financial system, according to the official statement. "All necessary measures within this scope will be swiftly implemented by our relevant institutions," the committee stated. Regulatory and supervisory authorities would continue to exercise their powers with determination against those engaging in market-disruptive activities, it added.

The committee urged the public to rely solely on official statements during the stabilization process and committed to regular disclosures as monitoring continues. Additional compliance reviews across the portfolio management sector are expected to proceed under the joint oversight of the Treasury and capital markets regulators.