Turkish bank shares slide more than 6% despite a rate cut

According to Euronews, the BIST 100 fell 2.62% to 10,926.54 points in the first half of 23 October, dipping below 11,000 intraday. Bloomberg HT's live feed reported that the banking index's intraday loss exceeded 6%. The index closed the day down 0.92% at 11,117 points; by Endeks24's calculation, the cumulative loss from 21 to 23 October was 3.97%.

The selling followed the CBRT's 100-basis-point cut, from 37% to 36%. İş Yatırım read a new phrase in the statement, on the size and timing of steps, as a signal that cuts would not proceed automatically, and judged the decision hawkish-looking. MKK data cited by Endeks24 show foreign investors were net sellers of 88.8 million dollars in the week of 12–16 October, bringing three-week outflows to 526.9 million dollars.

A fund scandal is adding to the pressure. The Capital Markets Board (SPK) has allowed an equity maintenance ratio of 20%, rather than the minimum 35%, on margin trades until the close of 30 October, temporarily softening margin calls. Euronews notes that a weekly loss would mark a sixth consecutive losing week for the index, the longest streak since February 2008.

Credit rating agency S&P painted a calmer picture the same day. It reaffirmed Türkiye's BB− rating with a stable outlook and described the fund scandal as a governance and supervision problem, not a threat to financial stability. S&P nonetheless said it is watching banks' capacity to roll over their large external debt, and warned that high real rates could erode asset quality in SME and retail lending.