FILE PHOTO: A view shows the logo of Halkbank at its headquarters in Atasehir, in the Asian part of Istanbul December 17, 2013. REUTERS/Murad Sezer/File Photo

ISTANBUL (Reuters) - Shares of Turkey's state-owned Halkbank HALKB.IS fell more than 7% at the opening of trade on Wednesday after U.S. prosecutors charged the bank with taking part in a scheme to evade U.S. sanctions on Iran.

In early trade, the banking index .XBANK dropped 3.21%, and the main share index BIST100 .XU100 was down 1.93%. Turkish authorities banned short selling of seven large banks' stocks on Wednesday following the U.S. charges against Halkbank.