Türkiye’s Financial Stability Committee said on Thursday that recent market volatility does not pose a fundamental or structural threat to Borsa Istanbul or the country’s capital markets, while pledging swift measures to ease liquidity pressures and prevent contagion.
The committee, chaired by Treasury and Finance Minister Mehmet Simsek, met to assess recent developments in the financial markets and concluded that the turbulence was linked to credit and liquidity problems at certain funds managed by a limited number of portfolio management companies.
“There is no fundamental or structural risk concerning the functioning of Borsa Istanbul and our capital markets,” the committee said in a statement.
It described the issue as concentrated in a specific segment of the fund market and said the problems were temporary and manageable.
Authorities prepare measures to ease liquidity pressures
The committee reviewed potential measures to preserve the healthy functioning of financial markets and protect macrofinancial stability.
“All necessary measures within this scope will be swiftly implemented by our relevant institutions,” it said.
The measures will focus primarily on easing liquidity constraints and preventing problems in the affected funds from spreading to other parts of the financial system.
The committee also said regulatory and supervisory authorities would continue using their powers “with determination” against individuals or entities found to have engaged in activities that disrupted market functioning.
Officials urge public to rely on official information
The committee urged investors and the public to rely only on statements issued by official institutions as authorities respond to the recent volatility.
It said it would continue to closely monitor developments and provide regular updates.
