Cabinet approves amendment to bar former owners from regaining weak banks

The government today approved the draft of the Bank Resolution (Amendment) Act, 2026, introducing a provision that prevents former owners of weakened banks from regaining ownership.

The amendment received final approval at the cabinet meeting, subject to vetting by the Legislative and Parliamentary Affairs Division.

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The decision was made at the 16th cabinet meeting held at the Secretariat, chaired by Prime Minister Tarique Rahman, the Cabinet Division said.

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Bank Resolution Act, 2026: Doors open for ex‑owners to reclaim banks

A source at the meeting noted the change was made “in the face of criticism at national and international levels.”

According to Cabinet Division officials, the interim government had merged five weak banks under the Bank Resolution Act. At the time, those responsible for weakening the banks were barred from returning to ownership.

However, when the ordinance was passed into law in parliament, the BNP government added Section 18a, allowing former owners to return. The provision drew widespread criticism, prompting the government to repeal it.

A Cabinet Division press release stated that the section was abolished as no individual or institution had applied while meeting all the conditions of Section 18a.

At the same meeting, the cabinet also gave final approval to the draft of the "National Human Rights Commission Act, 2026" and approved the "Visa Policy‑2026."