Turkey’s Istanbul bank index drops 2.5%, biggest intraday fall since Sept 2

The sharp single-day slide in Istanbul's bank index signals that market participants are again pricing in elevated macro risk specific to Turkey, rather than a broad emerging-market selloff. Banks are the most liquid proxy for local currency and inflation stress, so the move suggests renewed caution about the sustainability of recent policy adjustments. The key question is whether this is a one-off correction or the start of a broader repricing, which would depend on how authorities respond to currency pressure and whether inflation expectations remain anchored.