Controversial provision of Bank Resolution Act to be scrapped

The much-talked-about provision in the Bank Resolution Act that allows old owners to claim stakes is going to be scrapped, said the finance minister in the parliament today.

The government has taken the decision after consultations with different stakeholders.

The provision of 18 (A) of the 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.

Under the act, former directors or owners of banks, merging or listed for mergers, can pay 7.5 percent upfront of the amount injected by the government or the Bangladesh Bank to reclaim the banks. 

The remaining 92.5 percent is to be repaid within two years at 10 percent simple interest.

[More to follow]