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Published : 29 Jun 2026, 07:27 PM
The government will scrap the “controversial” Section 18(A) of the Bank Resolution Act following feedback from stakeholders, Finance Minister Amir Khosru Mahmud Chowdhury has said.
Speaking in parliament on Monday, he said depositors’ interest will be protected.
“Our message is clear -- those who looted public assets will not be spared.”
The finance minister had presented the proposed Tk 9.38 trillion budget for the 2026-27 fiscal year on Jun 11, setting targets of reducing inflation to 7.5 percent, achieving 6.5 percent GDP growth and increasing revenue collection.
On Monday, he defended those targets.
Addressing concerns over irregularities in the banking and financial sectors and efforts to recover laundered assets, he sought to reassure the public on two key issues.
"First, our position on recovering stolen assets is firm. The government has taken strict action against those who embezzled or laundered public money," he said.
He added that by May 2026, assets worth about Tk 723.43 billion had been seized or frozen in Bangladesh and abroad in 11 priority cases.
On the second issue, the finance minister assured depositors of the five merged Shariah-based banks that protecting public deposits remained the government's highest priority.
"Individual depositors of the five merged banks have been allowed to withdraw up to Tk 200,000 from their current and savings accounts. The remaining funds will be returned in phases," he said.
The BNP government enacted the interim government's Bank Resolution Ordinance into law on Apr 10.
Before the bill was passed in parliament, a new Section 18(A) was added.
The provision stated that shareholders of a bank placed under resolution could later apply to Bangladesh Bank to regain ownership of its shares, assets and liabilities.
The central bank would also have the authority to extend the same opportunity to any other suitable party.
The addition triggered widespread criticism.
Opposition parties in parliament alleged that the clause had been inserted to allow “controversial” business groups, including S Alam, to regain control of banks.
Outside parliament, the provision also drew criticism from the Bangladesh Association of Banks (BAB), which represents private bank owners, and the Association of Bankers, Bangladesh (ABB), which represents bank executives.
Both organisations called for its repeal.
Transparency International Bangladesh (TIB) also criticised the provision, describing the move to allow former shareholders of merged weak banks to reclaim ownership as "self-destructive".
