Turkish President Recep Tayyip Erdogan has affirmed that the state will confront anyone found to have harmed the public or manipulated markets through investment funds, whilst stressing that the irregularities remain contained and pose no wider threat to Türkiye's financial system.

"Whoever reaches for the rights, law, property or assets of the nation will find us and the state standing against them," Erdogan said, speaking after a Cabinet meeting in Ankara.

Erdogan noted that the Cabinet reviewed the ongoing fund investigations in comprehensive detail, with Justice Minister Akin Gurlek and Treasury and Finance Minister Mehmet Simsek briefing ministers on statutory steps taken so far.

"The problem that has occurred is limited to a small part of the fund market. There is no risk that has spread to our financial system," he stated.

Upcoming regulatory steps

Erdogan emphasised that Turkish capital markets remain fundamentally resilient and possess "solid foundations", expressing confidence in their capacity to overcome the current test.

He explained that judicial and regulatory authorities are proceeding with caution due to the "nature of capital markets", whilst maintaining direct oversight over the orderly liquidation of funds that have been closed.

"Those found to have engaged in market-disrupting activities through funds will be held accountable before the law," Erdogan said.

Judicial investigations are continuing into individuals suspected of securing unfair gains through investment funds or equities, the president added.

Erdogan confirmed that he will convene a meeting on Tuesday with senior economic policymakers and the heads of relevant regulatory institutions to evaluate further measures.

He reiterated that the government will act swiftly to introduce administrative and legal reforms aimed at enhancing the functioning of capital markets and preventing similar irregularities from recurring.