No Return for Former Owners as Controversial Banking Rule Dropped

Bangla Press Desk:   Facing widespread criticism, Finance Minister Amir Khosru Mahmud Chowdhury has announced the repeal of the controversial provision 18A of the Bank Resolution Act, meaning former shareholders or owners of banks placed under resolution will no longer be able to regain control of those institutions.

The government also unveiled a phased plan to repay depositors of the five merged Shariah-based banks.

Speaking during his closing remarks on the proposed 2026–27 national budget in Parliament on Monday (29 June), the finance minister said the decision to repeal the controversial provision of the Bank Resolution Act, 2026, had been taken following consultations with stakeholders.

He said the government's message was unequivocal: those who had looted public assets would receive no concessions, while the interests of depositors would be fully protected.

The BNP government enacted the Bank Resolution Act by converting the Bank Resolution Ordinance, promulgated by the interim government on 10 April, into law. Before the bill was passed in Parliament, a new Section 18A was inserted. The controversial provision stated that individuals who had been shareholders of a bank before it came under resolution could later apply to Bangladesh Bank to reacquire its shares, assets and liabilities. It also authorised the central bank to extend the same opportunity to any other suitable individual or institution if deemed necessary.

Following the inclusion of the controversial provision, opposition parties alleged that it had been introduced to pave the way for controversial business groups, including S Alam Group, to regain control of banks.

The finance minister also announced that individual depositors of the five merged Shariah-based banks would be allowed to withdraw up to Tk200,000 from their current and savings accounts. The remaining balances would be repaid in phases.

Special humanitarian arrangements have also been made for cancer patients, kidney dialysis patients, Hajj savings account holders and customers of deposit pension schemes (DPS).

To encourage greater investment in the capital market, the finance minister proposed several amendments to the Finance Bill. These include exempting income from zero-coupon bonds from taxation, extending tax concessions for listed companies, providing additional tax benefits to companies that conduct all transactions through banking channels, and reducing the tax rate on dividend income. The government also proposed removing the Tk500,000 investment ceiling for tax rebates on investments in mutual funds.

In his concluding speech, the finance minister said that, as of May, assets worth approximately Tk723.43 billion had been frozen both at home and abroad in connection with 11 priority cases. To facilitate the recovery of funds allegedly laundered overseas, Bangladesh has sent 23 Mutual Legal Assistance Requests (MLARs) to authorities in 13 countries. He added that the government had also initiated the first phase of civil proceedings against six major borrower groups.

The minister said the government was steering the economy away from debt-driven growth towards an investment-led model. As part of this strategy, it has proposed reducing government borrowing from the banking sector by Tk60 billion in the next fiscal year. It also plans to reduce operating expenditure while increasing the share of development spending.

To contain inflation, the government will continue reducing source-level taxes on 60 essential commodities, pursue deregulation to improve the ease of doing business, strengthen supply chains and maintain action against market manipulation.

"The success of a budget lies not in its announcement but in its implementation," the finance minister said, adding that the government would place particular emphasis on institutional reform, accountability and improving implementation capacity.