TMSF

Tasarruf Mevduatı Sigorta Fonu (TMSF) is a Turkish autonomous public institution responsible for deposit insurance and the orderly resolution of financial institutions that encounter instability. Its core mandate is to protect depositors and maintain confidence in the Turkish banking system, contributing to financial stability and the smooth functioning of the financial sector.

Deposit insurance is a primary function of the TMSF. It guarantees deposits up to a legally defined limit per depositor per bank. The fund collects premiums from insured banks to fund the guarantee and, in the event of a bank failure, pays insured deposits up to the applicable limit. The TMSF may also provide advance payments or other forms of protection as defined by law.

In addition to deposit insurance, the TMSF acts as a resolution and asset management authority for troubled financial institutions. It may assume control of insolvent banks, restructure viable parts of a bank, liquidate non-viable assets, and transfer assets or operations to other institutions. Through these actions, the TMSF seeks to minimize disruption to depositors and maximize recoveries from failed entities.

Organization and oversight are established by law, and the TMSF operates under the supervision of Turkish government authorities, typically in coordination with the Banking Regulation and Supervision Agency (BRSA) and the Ministry of Treasury and Finance. It is governed by a board and supported by staff with expertise in finance, law, and asset management. Funding comes from bank premiums, reserves, and asset recoveries.

Historically, the TMSF has played a central role in bank resolutions and related privatization and asset disposition activities during periods of financial stress in Turkey.