The government has announced it will repeal a controversial provision of the newly enacted Bank Resolution Act, retreating from a clause critics said could have opened the door for former bank owners to regain control of failed banks.
Finance Minister Amir Khosru Mahmud Chowdhury made the announcement on Monday while delivering his winding-up speech on the FY2026–27 budget in Parliament.
He said the government had decided to abolish Section 18(a) of the Bank Resolution Act, 2026, following feedback from stakeholders.
“The government’s message is clear. Those who looted public assets will not be given any concession. At the same time, depositors’ money will be protected,” the finance minister told Parliament.
The move marks a major policy reversal just weeks after Parliament passed the Bank Resolution Act on April 10, replacing an ordinance issued by the interim government.
Before the law was passed, lawmakers inserted Section 18(a), allowing shareholders who owned a bank before it entered resolution to apply to Bangladesh Bank to reacquire its shares, assets and liabilities. The provision also authorised the central bank to allow any other suitable party to acquire those assets.
The clause drew immediate criticism from opposition parties, economists and banking experts, who said it could create a legal pathway for controversial former owners, including the S Alam Group, to regain control of banks taken over under the banking sector reform programme.
Depositor repayment plan
The finance minister also announced a roadmap for repaying depositors of five Islamic banks that have been merged into the Combined Islamic Bank.
Under the plan, individual depositors will initially be allowed to withdraw up to Tk200,000 from current and savings accounts, with remaining balances to be repaid in phases.
Special humanitarian arrangements will be made for cancer patients, kidney dialysis patients, Hajj savings account holders and deposit pension scheme (DPS) customers, he said.
Asset recovery drive
Highlighting the government’s anti-corruption efforts, the minister said assets worth Tk72,343 crore had been frozen in Bangladesh and abroad in 11 priority cases as of May.
He added that 23 Mutual Legal Assistance Requests had been sent to authorities in 13 countries as part of efforts to recover laundered money, while civil proceedings had begun against six major defaulting business groups.
Broader fiscal stance
The finance minister said the government was steering the economy away from debt-led growth towards an investment-driven model.
The proposed budget seeks to reduce government borrowing from the banking sector by Tk6,000 crore while increasing the share of development expenditure.
Concluding his speech, he said the success of the budget would depend on implementation rather than announcement.
“The success of a budget lies not in its announcement but in its implementation,” he said, adding that greater emphasis would be placed on institutional reform, accountability and implementation capacity in the coming fiscal year.
