The head of Turkey’s banking watchdog is the latest casualty of the country’s investment-fund crisis

Another one is voluntarily biting the dust in the market regulators’ shakeup in Turkey. Sahap Kavcioglu, chairman of Turkey’s Banking Regulation and Supervision Agency (BDDK), has asked President Recep Tayyip Erdogan for permission to step down on Wednesday so the agency “would not suffer any further damage” from allegations tying it to the country’s investment fund crisis. Kavcioglu, central bank governor from 2021 to 2023, denied holding money in the funds under investigation or taking bribes. No successor has been named as of now.

The backdrop: Kavcioglu’s de facto resignation comes after deputy chairman Muhammet Erisen and two senior BDDK officials were jailed pending trial in the probe into market manipulation. Kavcioglu also recently came into the crosshairs, after the ruling-party politician Savci Sayan publicly questioned Kavcioglu over the scandal. Regulators ordered the liquidation of 131 funds run by seven asset managers since September after warnings they could not meet redemptions.