The government has decided to scrap the contentious Section 18(a) of the Bank Resolution Act, 2026, in a move that effectively blocks former owners of troubled banks from regaining control.
Finance Minister Amir Khosru Mahmud Chowdhury announced the decision while winding up the discussion on the proposed FY2026-27 budget in the Jatiya Sangsad on Monday.
“Based on the opinions of various stakeholders, the government has decided to repeal Section 18(a) of the Bank Resolution Act, 2026,” the minister said.
He made it clear that the government’s position remains unchanged against those responsible for financial irregularities.
“Our message is clear—those who looted public assets will not be spared. At the same time, depositors’ interests and the safety of their deposits will be fully protected,” he said.
Section 18(a) had drawn criticism from various quarters since the law was enacted, with concerns that it could allow former sponsors or owners of resolved banks to regain ownership under certain circumstances. The government’s latest decision effectively removes that possibility.
Highlighting broader financial sector reforms, the finance minister said Bangladesh needs a deep and efficient capital market to mobilise long-term financing for investment and sustain economic growth.
“A strong economy requires greater access to long-term financing for investment. That is why we have started working to make the capital market more transparent, accountable and investor-friendly,” he said.
He also said that, under the government’s deregulation policy, the Bangladesh Securities and Exchange Commission (BSEC) has already been restructured, while a review of the existing legal framework is underway to introduce necessary reforms.
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