Following the September 2026 liquidation of 131 investment funds by the Capital Markets Board (SPK), many investors face a complex recovery process.
SPK Orders Liquidation of 131 Investment Funds
The financial turmoil began on September 17, 2026, when the Capital Markets Board (SPK) ordered the liquidation of 131 investment funds managed by seven portfolio management companies. According to the board, these funds affected hundreds of thousands of investors. The move followed reports of unusual price movements in some funds’ companies’ basic economic sizes during the final quarter of 2025, which were later reviewed by the Financial Stability Committee on December 2, 2025.
The scale of the crisis is substantial. A precedent set by the Istanbul Regional Court of Justice 13th Civil Chamber on November 21, 2024 (E.2022/713, K.2024/1825) outlines how technical defense arguments and loss categories are evaluated in cases of unexecuted orders. Compensation is calculated based on the economic state that would have existed had the order been properly executed versus the actual outcome.
Bank Deposits Increase by 800 Billion TL
The liquidation has caused a notable reallocation of capital across the Turkish financial system. TCMB Fatih Karahan reported on October 6, 2026 that bank deposits increased by approximately 800 billion TL during the period of market instability. Economist Mahfi Eğilmez noted that while this reflects a limited decline in deposit rates, it cannot be attributed solely to the fund crisis, as monetary policy and interbank competition remain key factors.
The broader stock market has also felt the pressure. Data from the Central Registry Agency (MKK) revealed that in September, investor counts dropped across various portfolio tiers. This ripple effect increased the cost of borrowing for companies and hindered the ability of some firms to access financing. The 5-year CDS premium, which stood at 218 at the start of September, rose to 255 points by October 2, 2026.
Experts Warn Against Shifting Financial Burden to Taxpayers
The current crisis has drawn comparisons to historical market volatility in Turkey. Observers have also recalled the crisis of the early 1980s involving street bankers and the collapse of Kastelli.
Prof. Dr. Ceyhun Elgin of Boğaziçi University warned that the financial burden must not be shifted onto taxpayers. He noted that households unable to access their savings may cut consumption, potentially impacting employment and growth.
SPK Begins Initial Payments for 17 Funds
For those still holding assets, the SPK has begun initial investor payments for 17 funds, covering 43,643 investors. Officials have stated that funds for these payments will be sourced from the liquidated entities’ own assets, recovery of interest or other income obtained from these funds, and the sale of various assets.
Mahfi Eğilmez, in his analysis Fund Crisis: Effects Extending from the Stock Market to the Economy,
advised investors to focus on transparency and portfolio composition rather than panic selling. He stated: This is why the real question for the investor is not ‘Should I sell my fund?’ but; ‘What is in my fund’s portfolio and how might new rules change this portfolio?’
As the liquidation process continues, the reliance on Confucius’s adage remains a point of discussion among analysts: For a nation, the three most important things are: food, weapons, and trust. If one of these must be abandoned, first the weapons, then the food. Because without trust, a nation cannot stand.
The restoration of investor confidence, according to Eğilmez, remains the only path to a permanent solution for the current market crisis.