Finance Minister Amir Khosru Mahmud Chowdhury on Monday announced that the government will remove the controversial Section 18(a) from the Bank Resolution Act, 2026, while also unveiling a roadmap to repay depositors of the five merged Islamic banks.
Delivering his winding-up speech on the proposed 2026-27 national budget in Parliament, the minister said the decision to scrap the disputed provision was made following consultations with stakeholders.
The government's message is clear those who looted public assets will not be spared, while depositors' interests will be fully protected, he said.
The BNP-led government enacted the Bank Resolution Act on April 10, replacing an ordinance introduced by the previous interim administration. Before the bill was passed, a new Section 18(a) was inserted, allowing former shareholders of a bank placed under resolution to reapply to Bangladesh Bank to regain ownership, assets and liabilities of the institution. The central bank was also empowered to consider other eligible applicants.
The provision drew widespread criticism, with opposition parties alleging it could pave the way for controversial business groups, including S Alam Group, to regain control of troubled banks.
The finance minister also announced measures for depositors of the five merged Shariah-based banks. Individual customers will be allowed to withdraw up to Tk 200,000 from current and savings accounts, while the remaining funds will be repaid in phases. Special humanitarian arrangements will be provided for cancer and kidney dialysis patients, Hajj savings account holders and deposit pension scheme (DPS) customers.
To boost investment in the capital market, the minister proposed several tax reforms through the Finance Bill. These include tax exemptions on income from zero-coupon bonds, tax incentives for listed companies, additional tax benefits for businesses conducting all transactions through banking channels, reduced tax on dividend income and the removal of the Tk 500,000 investment ceiling for tax rebates on mutual fund investments.
Highlighting the government's anti-corruption drive, Chowdhury said assets worth around Tk 723.43 billion had been frozen at home and abroad in connection with 11 priority cases as of May. Bangladesh has also sent 23 Mutual Legal Assistance Requests to authorities in 13 countries to recover laundered money, while civil proceedings have been initiated against six major defaulting business groups.
He said the government aims to shift the economy from debt-driven to investment-led growth by reducing bank borrowing, containing inflation and strengthening institutional reforms to ensure effective budget implementation.
