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Bank resolution bill passed in parliament
Published : Thursday, 10 September, 2026 at 5:34 PM
observer online report
The Bank Resolution (Amendment) Bill, 2026, aimed at repealing the controversial Section 18(a) of the Bank Resolution Act, 2026, has been passed by the Jatiya Sangsad.
Finance Minister Amir Khosru Mahmud Chowdhury introduced the bill in parliament on Wednesday (September 9). It was later passed by voice vote. The report of the Parliamentary Standing Committee on the Ministry of Finance was also presented during the session.
While moving the bill, the finance minister said the decision to repeal Section 18(a) had been taken because no individual or institutional investor had come forward to meet the stringent regulatory conditions set out in the provision.
He said Section 18(a) had been incorporated to create a market-based alternative framework for restructuring troubled scheduled banks. The provision was intended to address banks’ capital shortfalls and liquidity crises, protect depositors and investors, and reduce pressure on public funds by avoiding bank liquidation.
The finance minister said the provision included several stringent conditions to ensure the participation of qualified and capable individuals or institutions. However, since the law came into effect, no individual, shareholder or institution had been able to fully meet those conditions.
As the provision failed to achieve its intended purpose, the government decided to repeal it, he added.
Under the bill, Section 18(a) of the Bank Resolution Act, 2026, will be repealed in its entirety.
The Bank Resolution Ordinance issued by the interim government did not contain Section 18(a). The provision was later added when the ordinance was amended and approved as an Act after the BNP-led government assumed office.
The controversy over the provision began after the Bank Resolution Act was passed. Critics feared that it could allow former or controversial directors and shareholders of banks brought under the resolution process to regain ownership of those banks.
Under the provision, shareholders holding shares in a bank could apply to Bangladesh Bank to reacquire the bank’s shares, assets and liabilities before the bank entered the resolution process. The provision also allowed the same opportunity to other eligible individuals or institutions.
Section 18(a) came under particular scrutiny amid concerns over the possible return of former directors and shareholders during the process of merging five troubled Islamic banks to form the United Islamic Bank.
Following criticism, the government later decided to repeal the provision.
In the statement of objectives and reasons attached to the bill, the finance minister said repealing the provision was appropriate as no individual or institution had so far applied after fulfilling all the conditions set out under the law.
-MT
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Phone: PABX- 41053001-06; Advertisement: 41053012; 01793317829, 01550707291, E-mail: [email protected], [email protected] Online: email: [email protected] 41053014; 01550707297 Advertisement: 01550707296
