A new law allows the architects of Bangladesh’s banking crisis to buy their way back in

One of the main reasons why the Awami League government was dethroned is the mishandling of the banking sector.

On April 10 this year, the parliament approved a legislative amendment to the Bank Resolution Act, 2026, which may undo months of banking reform and painful adjustments. Under the revised act, former owners of troubled banks, including those who mishandled their respective institutions to the point of insolvency, may acquire the same institutions again by paying less than 7.5 percent of the amounts previously provided by the government and central bank.

Amend Bank Resolution Act to remove clause giving leeway to financial criminals

The newly enacted Bank Resolution Act, 2026, paves the way for former owners to regain control of merging banks under relatively easy terms, a move seen as a reversal of the interim government’s banking reform.

Faruk Hasan lies bedridden in his home, recovering from bypass surgery. The 64-year-old heart patient needs regular medication to stay alive, but he cannot access the money to pay for it. His life savings -- Tk 80 lakh in fixed deposits -- remain frozen at Aviva Finance, a financial institution now on the verge of liquidation.

Says finance adviser; the amount is way below IMF’s $35b estimate

An independent deposit insurance mechanism is crucial for ensuring a stable financial system through close monitoring of the banks' liquidity positions.

Bangladesh Bank’s banking sector reform roadmap of last week will come to no use if the implementation failures of previous roadmaps cannot be understood, said eminent economist Wahiduddin Mahmud yesterday.

Bangladesh Bank's banking reform roadmap is nothing new, but failures to implement it has distressed the sector, said eminent economist Wahiduddin Mahmud

Deputy Governor Abu Farah Md Nasser likely to be appointed in the post