“There is no systemic risk affecting the market as a whole”
Speaking on NTV's live broadcast, Şimşek said economic authorities had comprehensively assessed the developments following a meeting of the Financial Stability Committee.
Şimşek said the developments in the markets were primarily caused by credit and liquidity problems in a limited number of funds, adding that there was no structural problem affecting the stock and fund markets as a whole.
131 of 2,038 funds undergoing liquidation
According to information provided by Şimşek, 131 of the 2,038 funds in Türkiye are affected by the process.
The 131 funds are managed by seven portfolio management companies and have been placed under liquidation by the Capital Markets Board of Türkiye (SPK).
Şimşek said these funds account for approximately 10–11 percent of total fund assets, while about 90 percent of the market continues to operate soundly.
“We quarantined the troubled area”
Şimşek said the measures taken were sufficient and that the troubled area had been separated from the rest of the market.
Şimşek said, “We quarantined the troubled area. The risk of contagion has been eliminated.”
Şimşek said the liquidation process would be conducted without putting pressure on Borsa İstanbul and that the SPK had prepared a comprehensive road map for the process.
Collateral structures strengthened
Şimşek said regulations governing free funds had also been tightened, adding that a new fund guide was published at the end of August and collateral structures were strengthened.
He said the Central Bank would provide the necessary liquidity to the market when needed, while the Banking Regulation and Supervision Agency (BDDK) and the SPK had also introduced measures to safeguard financial stability.
“Confidence in the market continues”
Şimşek said confidence in the markets had continued following the measures taken.
Şimşek said the risk of experiencing similar volatility again was very low and that legal proceedings would continue against those who put investors' savings at risk and engaged in market-distorting actions.
