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Bank Resolution (Amendment) Bill, 2026 Introduced in Bangladesh's Jatiya Sangsad

The Bank Resolution (Amendment) Bill, 2026, aiming to repeal Section 18(a) of the Bank Resolution Act, was placed in the Jatiya Sangsad today.

By Staff Correspondent
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Bank Resolution (Amendment) Bill, 2026 Introduced in Bangladesh's Jatiya Sangsad

The Bank Resolution (Amendment) Bill, 2026 was introduced in the Jatiya Sangsad (JS) today by Finance Minister Amir Khosru Mahmud Chowdhury. This bill seeks to repeal Section 18(a) of the Bank Resolution Act, which has been criticized for potentially allowing former shareholders of banks under resolution to regain ownership of shares, assets, and liabilities. The bill was referred to the Parliamentary Standing Committee on the Ministry of Finance for review and a report is expected within two working days.

Section 18(a) of the Bank Resolution Act has been a contentious provision since its inclusion. It allowed former shareholders of banks that underwent resolution to apply to Bangladesh Bank for the reacquisition of their shares, assets, and liabilities. This provision was not part of the original Bank Resolution Ordinance issued by the interim government but was added later when the BNP-led government amended and approved the ordinance.

Critics argued that Section 18(a) could enable former and disputed directors and shareholders of banks undergoing resolution to reclaim ownership, raising concerns about the integrity and stability of the banking sector. The controversy was particularly highlighted in the merger of five troubled Islamic banks into Sammilito Islami Bank, where there were fears about the potential return of former directors and shareholders.

FAQs

Q: What is the Bank Resolution (Amendment) Bill, 2026? A: The Bank Resolution (Amendment) Bill, 2026 is a legislative proposal introduced in the Jatiya Sangsad to repeal Section 18(a) of the Bank Resolution Act. This section allowed former shareholders of banks under resolution to reclaim their shares, assets, and liabilities.

Q: Why is Section 18(a) being repealed? A: Section 18(a) has been criticized for potentially allowing former shareholders, including disputed ones, to regain ownership of banks under resolution. This raised concerns about the integrity and stability of the banking sector.

Q: What was the context behind the introduction of Section 18(a)? A: Section 18(a) was added when the BNP-led government amended the Bank Resolution Ordinance. It was not part of the original ordinance issued by the interim government.

Q: How will the repeal of Section 18(a) affect the banking sector? A: The repeal aims to prevent former shareholders, including those with disputed claims, from reclaiming ownership of banks under resolution, thereby enhancing the stability and integrity of the banking sector.

Terms in this story

Source: BSS

FAQ

What is the Bank Resolution (Amendment) Bill, 2026?
The Bank Resolution (Amendment) Bill, 2026 is a legislative proposal introduced in the Jatiya Sangsad to repeal Section 18(a) of the Bank Resolution Act. This section allowed former shareholders of banks under resolution to reclaim their shares, assets, and liabilities.
Why is Section 18(a) being repealed?
Section 18(a) has been criticized for potentially allowing former shareholders, including disputed ones, to regain ownership of banks under resolution. This raised concerns about the integrity and stability of the banking sector.
What was the context behind the introduction of Section 18(a)?
Section 18(a) was added when the BNP-led government amended the Bank Resolution Ordinance. It was not part of the original ordinance issued by the interim government.
How will the repeal of Section 18(a) affect the banking sector?
The repeal aims to prevent former shareholders, including those with disputed claims, from reclaiming ownership of banks under resolution, thereby enhancing the stability and integrity of the banking sector.

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