Financial Markets and Risk Statement from Treasury and Finance Minister Mehmet Şimşek

Treasury and Finance Minister Mehmet Şimşek evaluated recent market volatility and developments in the fund market during a live broadcast. Minister Şimşek stated that there is no systemic risk and that necessary steps have been taken for troubled areas.

No Systemic Risk Exists

Reminding of the Financial Stability Committee meeting, Minister Şimşek stated that recent volatility in the markets stemmed from credit and liquidity problems in a limited number of funds.

Şimşek stated that there are no structural problems in the stock market and fund market, and that there is no widespread systemic risk in the markets.

Free Funds and Liquidation Process

Stating that the free funds sector is subject to much stricter rules compared to global counterparts, Şimşek conveyed that market-disrupting actions were detected in a very limited number of funds.

He noted that 131 funds managed by seven portfolio management companies have been put into the liquidation process by the Capital Markets Board and that the CMB has drawn a three-month roadmap.

Non-Bank Finance and Savings Companies

Touching upon the non-bank financial sector, Şimşek stated that steps within the framework of savings financing companies were initiated to protect investors.

Stating that processes regarding Emlak Katılım, Katılımevim, and Birevim are being carried out, the Minister emphasized that there is no hesitation regarding the rights of the participants.

Strong Structure of the Banking System

Expressing that the banking system is subject to very strict rules, Şimşek said that capital adequacy is more than twice the Basel III requirements.

Stating that the measures taken at the current stage are sufficient, Şimşek added that the environment of confidence in the market continues with determination.