Parliament passes Bank Resolution (Amendment) Bill

The Bank Resolution (Amendment) Bill 2026, which abolishes the controversial provision allowing former owners of weakened banks to reclaim control, was passed in parliament today amid uproar following remarks by Independent MP Rumeen Farhana on corruption and energy crises during BNP rule.

Finance Minister Amir Khosru Mahmud Chowdhury moved the bill.

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The amendment drops Section 18(A) of the Bank Resolution Act 2026, passed in April, which allowed former directors or owners of merged banks to regain control by paying upfront 7.5 percent of funds injected by the government or Bangladesh Bank, with the remaining 92.5 percent repayable within two years at 10 percent simple interest.

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The earlier Bank Resolution Ordinance 2025, passed by the interim government, aimed to address capital shortfalls, liquidity crises, insolvency and other risks facing scheduled banks. Under the ordinance, five weakened Islamic banks were merged into Bangladesh’s largest state-owned Shariah bank.

Retention of Section 18(A) in the 2026 Act was seen as a loophole enabling former owners to regain control on lenient terms.

In the bill’s statement of objectives, Amir Khosru said the provision should be abolished as no individual or institution had applied under its full conditions since the law took effect.