Turkey’s banking watchdog chief submits resignation amid fund scandal

Detailed summary

Turkey’s government is facing growing criticism over regulators’ failure to prevent a fund scandal involving more than $20 billion.

ANKARA — Turkey’s banking watchdog chief, Sahap Kavcioglu, said Wednesday that he had submitted his resignation as a fund scandal involving more than $20 billion engulfs financial regulators and puts mounting pressure on the government.

What happened: Kavcioglu, who has been serving as the head of Turkey’s Banking Regulation and Supervision Agency (BDDK) since June 2023, said his resignation is meant to mitigate damage to the institution amid “recent allegations concerning” the regulator and himself in connection with the fund scandal.

“I have asked President Recep Tayyip Erdogan to relieve me of my duties to prevent further damage to our institution,” he wrote on X.

In an X post on Oct. 30, Savci Sayan, a member of the ruling Justice and Development Party (AKP), asked whether Kavcioglu sought bribes from some of the fund managers involved in the scandal. Kavcioglu denied the allegations to the Turkish press, adding that the BDDK has nothing to do with the scandal.

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