Published : 06 Sep 2026, 03:20 AM
Updated : 16 Sep 2026, 11:47 AM
The Parliamentary Standing Committee on Finance has agreed to repeal the clause in the Bank Resolution Act that allows previous shareholders of troubled banks to regain control of shares, assets and liabilities of the bank, subject to certain conditions.
The bill was discussed at a meeting of the committee in the parliament on Saturday, a statement from the Parliament Secretariat said.
The notification said that after thorough scrutiny and review, the Bank Resolution (Amendment) Bill, 2026 has been recommended for passage in the parliament in an amended form.
The bill was tabled in parliament for passage on Thursday.
It was examined and sent to the Parliamentary Standing Committee on the Ministry of Finance to submit a report within two working days.
In 2025, the interim government issued the Bank Resolution Ordinance. Its purpose was to provide a legal framework for the restructuring or merger of banks in crisis. The ordinance did not have Section 18A.
Later, in the first session of the 13th national parliament, the section was added when the ordinance was made into law. It provided for the opportunity for former shareholders of banks undergoing resolution or restructuring to apply for re-acquisition of shares, assets, and liabilities by fulfilling certain conditions.
The opposition party objected to the section in parliament. It drew criticism in parliament.
On Aug 10, the Cabinet approved the proposal to repeal Section 18A.
The Parliamentary Standing Committee on the Ministry of Finance met on Saturday to discuss the bill.
After the meeting, Jamaat-e-Islami Dhaka-12 MP Saiful Alam Khan Milon spoke to journalists in the tunnel of the parliament building.
He said that the opposition party has no objection to the repeal of Section 18A through an amendment because they had been demanding its repeal for a long time.
Saiful said he believes that not only should Section 18A be repealed, but the entirety of the Bank Resolution Act needed to be reviewed again. He made the proposal at the meeting.
According to Saiful, it was necessary to properly evaluate the assets and liabilities of the five merged banks first.
He said that according to international standards, the assets and liabilities of each bank should be evaluated by an independent international organisation before such a merger.
This opposition MP claimed that such an evaluation was not done during the merger of the five banks under the interim government.
According to him, if the assets and liabilities are not properly evaluated, it is not clear what bank is being merged with. He suggested that such an evaluation be done if there is still an opportunity.
Sammilito Islami Bank was formed by merging Exim Bank, First Security Islami Bank, Global Islami Bank, Union Bank, and Social Islami Bank.
Bangladesh Bank granted a final licence to Sammilito Islami Bank on Dec 1, 2025.
Before the merger, the board of Exim Bank was controlled by businessman Nazrul Islam Mazumder. The boards of the four other banks were controlled by Saiful Alam, the head of the S Alam Group, and his family.
For this reason, there was particularly controversy over Section 18A, which paved the way for old shareholders to return.
After the process of withdrawing the administrators of the five banks was completed on Aug 16, Sammilito Islami Bank started operations under single management.
According to Bangladesh Bank's March data, the defaulted loans of the five merged banks amounted to nearly Tk 1.68 trillion, which is 84.22 percent of their total loans.
The paid-up capital of Sammilito Islami Bank is Tk 350 billion. Of this, the government has provided Tk 200 billion, while the remaining Tk 150 billion is to be added to the capital through conversion of depositors' shares.
Jamaat MP Saiful also called for a serious look at the issue of depositors' money in the merged banks.
He said that these banks hold the money of the common people, including that of his own relatives. People from the ruling party also have money deposited at the bank, he said.
