The government has allocated 36,706 crore for bank restructuring and consolidation in the upcoming fiscal year 2026-27. This allocation is aimed at ensuring discipline in the banking and financial sector and restoring confidence. The funds will be used for reducing bad loans, ensuring transparency in loan approval and rescheduling, and strengthening accountability in bank management. Risk-based supervision will be introduced for financially weak banks, and recapitalization and management reforms will be undertaken where necessary.
Finance Minister Amir Khosru Mahmud Chowdhury stated that the government will spend over 40,000 crore on bank recapitalization in the current fiscal year. Measures will be taken to prevent political interference in bank operations, free bank management policies from family influence, and strengthen the central bank's supervisory powers. International standards-based risk management, capital adequacy, and corporate governance will be ensured in the banking sector to make financial institutions stable and competitive in the long term. The use of technology in the financial sector will be increased to promote digital finance, fintech, and innovative financial services.
Bangladesh Bank sources informed that five Shariah-based banks facing irregularities and corruption have been merged to form 'Sammilito Islami Bank'. The authorized capital of the new bank is 40,000 crore, and the paid-up capital is 35,000 crore, with the government contributing nearly 20,000 crore. Additionally, five financial institutions are in the process of winding up, and several more banks may need to be merged. In this context, the government has allocated approximately 37,000 crore in the budget.
