Turkiye Transfers Management of Three Banks, Two Factoring Firms to Deposit Insurance Fund

Turkish authorities have transferred management of three banks and two factoring companies to the country's Savings Deposit Insurance Fund, according to a report by Anadolu Agency.

The agency's report links the decision to an ongoing investigation, though it does not name the banks or factoring firms involved or detail the specific findings that prompted the transfer.

As part of the arrangement, certain stakes in the affected factoring companies must be sold off within six months, Anadolu reported, without specifying to whom the stakes would be sold or what would happen if a sale is not completed within that window.

Turkiye's deposit insurance fund has periodically taken over financial institutions in the past amid regulatory investigations, a mechanism intended to protect depositors and maintain stability in the banking sector while irregularities are examined.

Anadolu's report does not indicate whether the transferred institutions will continue normal operations under new management or face further restructuring while the investigation continues.