Shares in Turkey-exposed European banks fell on Monday as the lira tumbled following President Tayyip Erdogan's shock weekend sacking of central bank governor Naci Agbal, whose hawkish inflation stance had been helping underpin the currency.
Spain's BBVA is seen as the most exposed, while Italy's UniCredit , BNP Paribas of France and Dutch bank ING Groep also do business in Turkey and may be hit by a slump in its currency.
Shares in BBVA slipped as much as 7.7%, to a five-week low, while ING, UniCredit and BNP Paribas also came under pressure after Erdogan appointed Kavcioglu.
Turkey's lira fell as much as 17.5% to 8.4850 versus the dollar on Monday, just shy of a record low.
ING does wholesale and retail banking business in Turkey, where it operates through a wholly-owned subsidiary.
The country generated a total income of 420 million euros in 2020, making it the Dutch bank's third biggest market outside Europe after the United States and Australia.