The tenure limit for banking executives follows allegations of a Ponzi scheme involving a long-serving bank CEO. Credit: hafakot/Shutterstock.

Turkey’s banking regulator, Banking Regulation and Supervision Agency (BDDK), has proposed a draft regulation that limits the tenure of banking executives, including CEOs and deputy general managers, to a maximum of ten years at the same bank.

This move follows allegations of a Ponzi scheme involving a long-serving bank CEO, reported Bloomberg.

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A Ponzi scheme works by paying returns to earlier investors using the funds from new investors.

According to the draft, CEOs could serve for up to ten years, with deputy general managers also capped at ten years, extendable by another five with regulatory approval.

This proposal limits the number of deputy general managers to 15 per bank.

The proposed regulation also seeks to restrict branch managers’ tenures to four years at the same bank. If approved, banks would need to comply with the new rules by 30 June 2025.

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The BDDK has not commented on the proposal.

The draft regulation comes in the wake of an alleged fraud that targeted footballers, promising high returns on investments.

Secil Erzan, a manager at Denizbank AS, an Emirates NBD unit, reportedly orchestrated a $44m Ponzi scheme.

Investors, including former FC Barcelona and Inter Milan players, were enticed with a 250% return on dollar investments.

In November last year, Denizbank CEO Hakan Ates was indicted for his alleged involvement in the scheme. However, the indictment was returned due to insufficient information.

Ates, who had led Denizbank since 1997 and oversaw its 2019 acquisition by Emirates NBD, resigned in December at the age of 65.