The Bank Resolution Bill 2026 introduces a structured framework allowing former sponsors and shareholders of merged banks to return to ownership, but only after meeting stringent financial, legal and regulatory obligations set by the Bangladesh Bank.
The provision marks a shift from earlier practices, where re-entry of previous owners was largely absent or informally discouraged.
Under the new rules, applicants must inject fresh capital to restore the financial health of the bank and cover any capital shortfall that occurred before or during the resolution process.
They are also required to settle all outstanding liabilities, including loans, guarantees, and any financial assistance previously provided by the government, central bank or other institutions.
The law further mandates full repayment of tax and non-tax dues, compensation for affected parties, and settlement of claims from depositors, creditors and third parties prior to any ownership transfer.
The bill, passed in Parliament on Friday, establishes a structured pathway for former owners to reclaim stakes in merged banks, provided they absorb the full cost of past failures and comply with strict regulatory benchmarks.
To prevent speculative control, Bangladesh Bank may impose restrictions on share transfers and ownership restructuring for a defined period. Applicants must also commit to strengthening governance, risk management and compliance systems.
Officials said the objective is to shift the burden of recovery onto original sponsors, reduce reliance on public funds and reinforce accountability, although questions remain over the practical implementation of allowing former owners back into control.
A senior Bangladesh Bank official said the law formally permits previous owners of merged banks to reclaim ownership, but its effectiveness will depend on enforcement and market conditions.
He noted that earlier mergers were carried out rapidly, leaving limited time for adjustment, and said the evolving context warrants reconsideration of ownership reinstatement.
Former World Bank lead economist Zahid Hussain criticised the move, warning that repeated reform efforts have failed to enforce discipline in the banking sector.
He said a culture of impunity risks rewarding defaulters instead of ensuring accountability.
