Turkey Finance Minister Says No Systemic Risk in Stock and Fund Markets

September 18, 2026 at 12:12 PM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

Turkish Treasury and Finance Minister Mehmet Şimşek said on Thursday that recent market turbulence was limited to a small number of funds and posed no systemic risk. He said the Financial Stability Committee met on Wednesday and took strong measures to prevent contagion. Şimşek added that 131 funds run by seven portfolio management companies have been placed into liquidation by the Capital Markets Board.

Key Facts

Turkey has 2,038 funds in total, of which 131 are affected by the current liquidity problems.
The Capital Markets Board (SPK) has placed 131 funds operated by seven portfolio management companies into liquidation.
The Financial Stability Committee (FİK) convened on Wednesday with all economic authorities present.
Şimşek stated that 90% of the fund market continues to operate healthily.
A new fund guide with stricter rules for free funds was announced at the end of August.

Market Turbulence Assessment

Şimşek said the market events were essentially a credit and liquidity problem in a limited number of funds. He emphasized that there is no widespread systemic risk and no structural problem in the stock and fund markets. The minister noted that the free fund area is relatively loosely regulated compared to other segments, similar to hedge funds abroad. He said the sector has grown since 2019 when free funds began trading on the TEFAS platform.

Regulatory Measures and Liquidation

The SPK has initiated liquidation proceedings for 131 funds managed by seven portfolio management companies. Şimşek said the SPK has laid out a comprehensive roadmap for the liquidation process. He stated that the liquidation will not put pressure on the stock market and will be conducted according to principles. The minister added that strong measures were taken on Wednesday to prevent the problem from spreading to the entire market. He said the measures are sufficient at this stage and the process will proceed healthily.

Fund Market Structure

Şimşek said the affected funds represent about 10-11% of total fund accumulation in Turkey. He clarified that this does not mean the funds have no assets, and the SPK will carry out liquidation according to principles. The minister noted that a fund guide imposing very strict rules on free funds was announced at the end of August. He said collateral structures were strengthened and steps were taken to address concerns about collateral. Şimşek also recalled that in 2024, money market funds were required to invest in treasury bills considered zero-risk.