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Published : 13 Apr 2026, 07:32 PM
Transparency International Bangladesh (TIB) has scathingly criticised the newly passed Bank Resolution Act, claiming it provides a legal gateway to rehabilitate "identified looters" by allowing former shareholders of troubled banks to regain ownership.
The graft watchdog warned on Monday that the legislation could turn the banking sector back into a "sanctuary for corruption and looting" by prioritising impunity over accountability for those responsible for the industry's collapse.
In a statement, TIB Executive Director Iftekharuzzaman pointed out a significant departure from the previous “Bank Resolution Ordinance” issued during the interim government’s tenure.
While the ordinance prohibited those responsible for a bank’s downfall from ever regaining ownership -- even if they repaid the embezzled funds -- the new act includes Section 18(A), which reverses this stance.
"Regardless of the government's justification, this decision protects and assists the corrupt. Instead of ensuring legal accountability, it massively rewards the looters. This is suicidal," said Iftekharuzzaman.
He also suggested that the fall of authoritarianism has not ended the abuse of power in the banking sector.
Instead, he described the current situation as a temporary pause in "kleptocracy", followed by a strategic "rehabilitation" of old players under a "winner-takes-all" formula.
TIB, local chapter of Berlin-based Transparency International -- a global anti-corruption organisation, raised serious concerns regarding the financial terms offered to former owners seeking to reclaim their stakes.
Under the new law, previous owners -- whom TIB labels as the “pioneers of looting”-- can regain control by paying just 7.5 percent of the government-determined amount upfront and repaying the remaining 92.5 percent over two years at a 10 percent interest rate.
"By what magic have these previous owners achieved such purity that they are being allowed to reacquire assets on such easy terms?" Iftekharuzzaman questioned.
He expressed doubt over whether these owners would actually fulfil obligations such as injecting new capital, meeting revenue targets, or compensating affected depositors once they regain control.
The watchdog cautioned that the central bank, which it described as being plagued by "conflicts of interest", is unlikely to enforce these conditions effectively.
TIB fears that instead of recovery, the law will lead to "deeper bankruptcy" within the sector, the burden of which will ultimately fall on the taxpayers.
