Türkiye's banking watchdog has proposed a draft regulation to limit the tenures of bank executives, a report said on Thursday, in a move that would come after a high-profile scandal at one of the country's top private lenders.
According to the new rule, CEOs would be restricted to a maximum of 10 years in their roles at the same bank, Bloomberg News reported, citing a draft of the regulation prepared by the Banking Regulation and Supervision Agency (BDDK).
Their deputies' terms would also be limited to 10 years, with the possibility of a one-time extension of up to five years with special permission from the regulators. The number of deputy general managers won't exceed 15 per lender, according to the draft.
The initiative follows the fallout from a financial scandal at United Arab Emirates-based lender Emirates NBD's Türkiye unit Denizbank, where Seçil Erzan, a former branch manager, allegedly orchestrated an illicit scheme involving promises of high returns.
Erzan allegedly amassed millions of dollars from high-profile football players, including Arda Turan, a former Barcelona midfielder, and Uruguayan Galatasaray goalkeeper Fernando Muslera. Denizbank has denied any role in wrongdoing.
According to indictment, Erzan convinced them to invest in the fund in part by telling them that former Turkish national team coach Fatih Terim had also invested.
Under the case opened in 2023, prosecutors sought a 216-year prison term for Erzan. According to indictment, she defrauded some $44 million from 18 individuals, promising substantial returns on their investments in a "secret special fund."
Erzan, who has been jailed as the case against her continues, alleged that Denizbank CEO Hakan Ateş was aware of the scheme, a claim the latter has repeatedly denied. Ateş stepped down from his role last month after 27 years at the helm but remains on the bank's board.
In November, he was indicted for his alleged role in the scheme. But the court returned the indictment to prosecutors, citing insufficient evidence.
Ateş, 65, served as the CEO since 1997 and is credited with leading Denizbank through major growth phases, including its acquisition by Dubai's largest lender from Russia's Sberbank in 2019 for about $2.7 billion
The proposed BDDK regulation also includes a cap of four years for branch managers within the same bank, and five years for regional managers.
Banks are expected to comply with the new guidelines as of June 30, 2025, if the proposal is enacted.
The regulation would mark a major departure from current practices in Türkiye's banking sector, where lengthy tenures for executives are common. The move is seen as a step toward ensuring a more dynamic and transparent sector, reducing risks tied to entrenched leadership.
