Minister Şimşek: We know that manipulations are being made through certain funds.

04.11.2025 16:59

The Minister of Treasury and Finance, Mehmet Şimşek, stated, "We are aware that manipulations are being carried out through certain funds, and we recognize the need for regulation in this area. We will increase the intensity of our fight against manipulation beyond that of our fight against the informal economy."

The "Capital Markets Congress," organized for the 9th time this year by the Turkey Capital Markets Association (TSPB) with the theme of "interaction," has started in Istanbul, bringing together the business world, finance, capital markets, and investors.

In his opening speech at the congress, Minister of Treasury and Finance Mehmet Şimşek stated that one of the goals of the Turkey Century is to "develop and deepen capital markets," emphasizing the importance of continuously improving the regulatory framework in this context.

Şimşek mentioned that there is no deficiency in technological infrastructure, stating that there will be additional regulatory efforts in some areas and that they have steps to take in terms of product diversity and expanding the investor base. He highlighted the need to keep up with developments in digitalization and new products, saying, "The development of development investment banking is an important topic for strengthening this ecosystem."

Şimşek noted that unfortunately, there is a banking-heavy financing model in Turkey, continuing his remarks: "According to figures from mid-2023, unfortunately, only 12% of our companies' financing needs are met by capital markets. 88% comes from the banking and finance sector. The US relies on a financing model that is 60% capital markets-based. The EU is around 30%. We want to transition from a banking-heavy financing model to a capital markets-heavy financing model. Why? Very simple. In fact, this transition will provide strong support for achieving our Turkey Century goals. We need to direct our resources to productive areas, long-term projects, and investments. It is not easy to do this through a banking system with very limited deposit maturities."

"THERE IS A SERIOUS TURN TOWARDS CAPITAL MARKETS AND INTEREST IS INCREASING"

Minister Şimşek stated that they aim to keep resources in Turkish lira for the long term and increase demand for the lira in terms of managing exchange rate risk for companies and all sectors, emphasizing that this naturally requires a capital markets-focused model. Şimşek expressed that they have made some progress in this regard, continuing: "If you look at the first 9 months of 2025, nearly 34% of total financing has been obtained from capital markets, while the banking sector's share has decreased. This may be partly cyclical, but the trend is very important. In fact, the point we are trying to reach is similar to this and beyond. That is, to transform capital markets into an area where financing needs are primarily met in Turkey. Therefore, there is progress, and this is a positive development. We will continue this."

Şimşek noted that there is a serious turn towards capital markets and that interest is increasing, stating, "I particularly value bond issuances and lease certificate issuances. Of course, we have things to do for this area to develop much more strongly. Price stability is the most important issue. It is very valuable for us that the increasing interest in this area continues to strengthen on a solid ground."

Minister Şimşek mentioned that there may be a need for regulations regarding innovative and digital products, stating that the regulation concerning cryptocurrency last year was an important step. He pointed out the importance of popularizing participation finance instruments, green finance, and sustainable finance products, and expressed that he finds regulations to increase corporate governance and transparency, as well as the representation of women on the boards of publicly traded companies, very valuable.

"WE WILL INCREASE THE DOSE OF FIGHTING MANIPULATION"

Minister of Treasury and Finance Şimşek addressed the issue of fighting manipulation, continuing his remarks: "There will be a need for regulation in this area. Making penalties much harsher is on our agenda. The fight against manipulation has many dimensions. Financial literacy is one of them. I congratulate our Capital Markets Board, our President (İbrahim Gönül), and his team. Last year, we launched an important platform in this regard. While financial literacy is essential in the fight against manipulation, we will also have an additional effort to increase penalties and strengthen the regulatory framework. If we cannot fight manipulation strongly, trust in this area will remain weak. Therefore, this is a must for us. We know that manipulations are being made through certain funds. We also know that there is a lack of regulation in that area. We will address these deficiencies and in the coming period, we will increase the dose of fighting manipulation beyond that of fighting informality. This may be the most important message you want to hear at this congress, and it is the one I want to convey."

"MARKETS WILL DEEPEN AGAIN WITH DEFLATION"

Minister Şimşek expressed that it is encouraging to see the development of the investor base in capital markets, stating that the increase in both the size of funds and the number of companies traded on the stock exchange, as well as the number of investors, reflects the positive energy in the ecosystem.

Despite this, Şimşek emphasized that the fact that shares are held for only 51 days is a separate problem, making the following evaluations: "These issues are genuinely not something that can be resolved solely by regulators, regulatory bodies, or the public. It is a matter that all capital markets and the ecosystem must succeed together. Therefore, we want foreign investors to return to previous levels. For this, it is necessary to strengthen trust in the system through certain regulations, ensure the ecosystem operates well, and most importantly, the success of the deflation program is required. Since 2023, interest has increased, and we are on the right trend and path. Deepening capital markets is one of our most important goals."

Şimşek provided examples of periods when interest in Borsa Istanbul increased in previous years, stating that looking at the 3-year moving averages, the depth of the markets has increased recently. Minister Şimşek said, "With deflation, markets will deepen again, and the market value of Borsa Istanbul will reach a point where it competes with similar countries. That is, if you look at the 3-year moving averages today, it is around 32%, but by the end of 2024, it will be around 29%. It will take some time for this to reach world averages, but doubling this can be seen as a very realistic and reasonable target."

"THE STOCK EXCHANGE IS NOT A PLAYGROUND"

Minister of Treasury and Finance Şimşek emphasized that their only expectation from the capital markets board in public offerings is that "we need to go by the rules. The process must be transparent and rule-based. I know that important steps have been taken in this direction. It is also important that public offerings start strongly again in the upcoming period.

Şimşek emphasized that the stock market is not a playground, stating, "Establishing a real partnership with a long-term perspective is essential. True ownership means a real partnership. Therefore, we agree with our sector on all these issues. Our vision aligns perfectly with the expectations of our sector. In the upcoming period, we will work together with our sector and all components of the sector's ecosystem, and we will achieve these goals."