Turkey has enlisted its two largest banks, Turkiye Is Bankasi AS and state-run Ziraat Bankasi AS, to oversee the liquidation of 131 investment funds holding over $18 billion and serving roughly 350,000 investors. The move follows a week of turmoil after Tera and Pusula funds could not meet redemption requests, a stress that intensified in August when regulators tightened rules on concentrated stock holdings. The crisis triggered a three‑day selloff in Turkish equities, prompting regulators to intervene with liquidations, trading bans, and liquidity measures.

Authorities have detained several finance executives, imposed travel bans, and filed criminal complaints over alleged price manipulation. Treasury Minister Mehmet Simsek said the problematic area is quarantined with no systemic risk. Meanwhile, Ziraat Portfoy’s ETFs saw a surge of 4.05 billion liras ($83 million) in inflows, sparking speculation of sovereign wealth fund involvement.

Isbank will handle Tera’s funds, while Ziraat oversees six other managers, including Pusula, with redemptions after 1:30 p.m. on Sept. 17 given priority.