Finance Minister Amir Khosru Mahmud Chowdhury today assured parliament that depositors of the country's troubled banks would receive their deposits along with the interests, ruling out any possibility of a 'haircut', while acknowledging that the process would take time because the banks are suffering from mounting losses.
Government Framework for Financial Stability
Responding to a call attention notice on important public matter under Rule 71 of the Rules of Procedure placed by treasury bench lawmaker Rehana Akhter Ranu (women seat-4) in the House, the finance minister said the government has already put in place a comprehensive legal and institutional framework to restore stability in the financial sector, safeguard depositors' interests and recover money siphoned off through banking irregularities.
"There will be no haircut. Depositors will get back their money and interest. I can assure you of that," he told the House.
Request for Patience
Requesting depositors to remain patient, the minister said the financial condition of the affected banks makes an immediate settlement difficult. "Please have a little patience. These banks are all operating at losses, and the losses are increasing every day. When a bank cannot even return deposits, you can understand how difficult it is for that bank to pay interest," he said.
Government Commitment and Measures
The minister reaffirmed the government's commitment to protecting depositors. "Nevertheless, as an elected government, we are committed to protecting the interests of the people. We will definitely ensure that depositors receive both their deposits and the interest. But, this requires some time," he added.
Highlighting the human suffering caused by the banking crisis, the minister said many depositors are facing severe financial hardship. "I know people do not have time to wait. Some are dying because they cannot afford medical treatment. Some cannot arrange their daughters' marriages. I encounter these problems every day," he said.
Legal and Institutional Framework
The resolution of the crisis would require medium- and long-term measures, he said but reiterated that depositors' money was secure. "I can say this with certainty - depositors will get back their money. They will also get the interest. That is guaranteed. But, everyone will have to be a little patient," he said.
Earlier in his reply, the finance minister said the government has enacted the Bank Resolution Act, 2026, creating a well-organised and multi-dimensional resolution framework to restore discipline and stability in the country's financial sector.
He said under the new law, five financially distressed banks - Export Import Bank of Bangladesh (EXIM Bank) PLC, First Security Islami Bank PLC, Global Islami Bank PLC, Social Islami Bank PLC and Union Bank PLC - have been merged into Sammilito Islami Bank PLC, describing the consolidation as the most significant measure taken under the country's bank resolution strategy.
"The claims and interests of all depositors of these five banks have been fully protected in the newly formed bank," he said.
Deposit Protection and Recovery Measures
The minister also said the government has strengthened legal protection for depositors through the Deposit Protection Act, 2026, increasing the maximum insured deposit from Tk 100,000 to Tk 200,000. Depositors of financial institutions, who were previously outside the scope of deposit protection, have also been brought under the law.
He informed parliament that depositors of banks placed under resolution are already receiving their money in phases under schemes introduced by Bangladesh Bank.
The finance minister said special forensic audits are currently underway to identify individuals responsible for loan irregularities and financial misconduct in the five banks. Based on the audit findings, legal steps would be taken to recover misappropriated assets and ensure the recovery of depositors' money, he said.
Citing Section 57 of the Bank Resolution Act, 2026, he said Bangladesh Bank has been empowered to take control of the income, assets, property and rights acquired through the misuse of bank funds by those responsible for financial irregularities.
"By applying this law, the authorities will be able to take control of the assets of the responsible individuals and recover depositors' money through sale or auction of those assets," he said.
International Legal Actions
The minister said that, alongside criminal proceedings, the government has also initiated civil actions to recover defaulted loans and bring back money illegally laundered abroad due to corruption in the banking sector.
He said around 30 affected banks have started appointing nine international legal firms under "no win, no fee" arrangements after signing non-disclosure agreements to pursue recovery of defaulted loans and laundered assets overseas.
According to the minister, civil proceedings have already begun in the first phase involving six priority cases linked to S Alam Group, Saifuzzaman Chowdhury, Beximco Group, Sikder Group, Nassa Group and Orient Group, while the recovery drive will be expanded further.
He added that huge amounts of money had been laundered abroad during the tenure of the previous government, and the present government has undertaken all possible legal and institutional measures to recover those assets and strengthen confidence in the country's banking system.
