The head of the Turkish banking watchdog, Şahap Kavcıoğlu, said Wednesday he submitted his resignation to President Recep Tayyip Erdoğan.

"In light of the recent allegations concerning the Banking Regulation and Supervision Agency (BDDK) and myself, I asked our esteemed President Recep Tayyip Erdoğan for permission to step down so that our agency would not suffer any further damage," Kavcıoğlu said in a statement on X.

"I extend my deepest gratitude to our esteemed president, who has entrusted us with these duties to date," he added.

His resignation comes following a recent fund scandal in the country, where authorities are probing over 400 suspects, while 131 funds have been ordered to be liquidated.

The granting of banking licenses to certain companies and groups, which have been mentioned in a recent investigation conducted by the Istanbul Chief Public Prosecutor's Office into transactions within the capital markets, has become a subject of controversy.

Within the scope of this investigation, the individuals involved included some BDDK officials.

Kavcıoğlu previously served as governor of the Turkish central bank.