A controversial provision of the Bank Resolution Act 2026 has come under renewed pressure after Bangladesh Bank Governor Md Mostaqur Rahman indicated that Section 18(a), which allows former owners to seek restoration of control over troubled banks under certain conditions, may not be sustainable in its current form.
The issue surfaced during a meeting between the Editors’ Council and the governor at Bangladesh Bank headquarters on Monday, where editors expressed concerns that the provision warrants deeper scrutiny because of its potential implications for banking sector reforms and financial stability.
According to participants, the governor told the editors that the provision was proving “not maintainable” in practice, noting that no former owners had approached the central bank to reclaim a struggling bank even though nearly two months have passed since the law was enacted.
The discussion highlighted growing concerns over the direction of banking reforms at a time when the sector remains burdened by record levels of non-performing loans, governance failures and persistent questions over the safety of depositors’ funds.
Editors led by Editors’ Council President and New Age Editor Nurul Kabir also raised issues relating to weak-bank oversight, foreign exchange market stability, inflation, investment and employment conditions, as well as the recent tensions surrounding Islami Bank Bangladesh PLC.
Emerging from the meeting, Nurul Kabir said the governor briefed the editors on a range of reform initiatives and assured them that necessary measures would be taken to address the sector’s challenges.
In a statement issued after the meeting, Bangladesh Bank said the governor outlined its broader reform agenda, including measures to tackle non-performing loans, strengthen governance, improve oversight of weak banks and preserve financial sector stability.
The governor informed the editors that amendments to the existing Money Loan Court framework are being prepared to accelerate the disposal of default-loan cases. At the same time, work is underway to formulate a distressed asset management company law aimed at dealing more effectively with unrecoverable assets.
Bangladesh Bank also said its asset recovery efforts had helped freeze $25 million of allegedly laundered assets in the United Kingdom, which authorities are now seeking to recover.
The governor reiterated that the reform programme is centred on depoliticising the banking sector and strengthening professionalism, accountability and governance in bank management and lending decisions.
Participants were also briefed on ongoing efforts involving weak banks, including merger initiatives, board restructuring and management changes intended to protect depositors’ interests. According to the central bank, the merger process is expected to accelerate further after the completion of Core Banking System upgrades in the affected institutions.
The meeting was attended by editors of several leading newspapers, including Prothom Alo, The Financial Express, Bonik Barta, Manabzamin, Daily Inqilab, Samakal and Agamir Somoy.
