Bangladesh is undertaking an extensive series of legal reforms to confront its mounting default-loan crisis, with coordinated efforts now underway to recover assets at home and abroad, Bangladesh Bank Governor Ahsan H Mansur said Monday.
Speaking at the launch of two flagship publications – State of Bangladesh Economy 2025 and SDGs: Bangladesh Progress Report 2025 – the governor outlined a wide-ranging reform drive aimed at restoring discipline and strengthening the financial sector.
The launch was held at the at the NEC Conference Room in Dhaka’s Sher-e-Bangla Nagar.
Mansur said domestic recovery measures include seizing the properties of loan defaulters, confiscating their bank shares and taking control of other assets.
He noted that parallel efforts are being pursued overseas, as Bangladesh is signing agreements with global law firms and mobilising state agencies to initiate legal procedures.
A “ring-fencing” strategy is already being applied to large industrial defaulters, including those owing several thousand crore taka.
Mansur said this approach keeps their factories running through tightly monitored operational financing while preventing management from extracting any undue benefits.
The aim is to safeguard workers, maintain production and ensure that economic activity continues to feed back into the broader system.
Asset recovery is expected to advance, though the process will take time, he cautioned.
The governor stressed that financial-sector stability and improved governance lie at the core of the reform agenda. Liquidity stress, inadequate capital buffers and longstanding governance weaknesses have plagued the banking system for years.
So, reversing this trajectory will require strict enforcement of transparency and good governance, he said.
Mansur added that Bangladesh Bank has committed to disclosing all information, “however uncomfortable”, to ensure full transparency.
As part of a tougher governance framework, banks facing losses or capital shortfalls will be barred from issuing dividends or awarding bonuses. The Bank Resolution Ordinance, now close to implementation, will also open the way for resolution proceedings for five banks and nine non-bank financial institutions.
