BAB applauds FY27 budget, calls for asset recovery and tax relief

The Bangladesh Association of Banks (BAB) has welcomed the proposed national budget for FY2026-27, describing it as a reform-oriented financial roadmap, while urging the government to ensure recovery of misappropriated banking assets, protect private-sector credit and provide a fair tax regime for the banking industry.

In a statement issued on Sunday, BAB said the budget reflects a strong commitment to restoring stability and confidence in the country's financial sector through bank recapitalisation, governance reforms and measures aimed at deepening capital markets.

The association particularly praised the government's decision to allocate around Tk 40,000 crore for the recapitalisation of weak banks, introduce a risk-based supervisory framework aligned with international standards, curb political interference in banking and promote the development of corporate and municipal bond markets.

BAB also welcomed the increase in the excise-duty exemption threshold on bank deposits to Tk 4 lakh and the rationalisation of excise duty on loan facilities. According to the association, these measures will provide relief to both depositors and borrowers.
The bankers' body further lauded the Tk 60,000 crore Stimulus Package 2026, featuring a 6% interest subsidy, alongside reforms aimed at facilitating investment through simplified trade procedures, dividend repatriation and single-window services.

"The budget places the banking sector at the centre of economic recovery and growth," the association said, adding that its member banks are prepared to support implementation through stimulus financing, funding for economic zones and export industries and expansion of digital financial services.

However, BAB stressed that recapitalisation efforts must be accompanied by accountability and asset recovery.

It called for swift legal action to recover funds allegedly siphoned from banks, stronger enforcement against wilful defaulters and transparent handling of irregularly acquired shareholdings. In a statement, BAB Chairman Abdul Hai Sarker said the budget recognises the importance of a strong banking sector for sustaining economic growth but stressed that reform efforts must be backed by accountability and implementation.