ISTANBUL—Turkey seized control of Libyan bank assets Monday, one day after recognizing Libya's opposition in Benghazi as the country's legitimate government, in moves that effectively severed remaining ties to Col. Moammar Gadhafi.

In a statement, Turkey's Savings Deposit Insurance Fund said it had taken temporary control of Libya's 62.37% stake in A&T Bank, formerly known as the Arab-Turkish Bank, in response to United Nations Security Council resolution requirements.

Over the past two months in particular, Turkey's leaders have been adjusting a foreign policy that went under the rubric "zero problems with neighbors" to changes forced by the Arab Spring, analysts say. In Libya as in Syria, Turkish foreign policy had been built on strong ties with leaders now targeted by mass revolts.