Bank Resolution Bill passed in parliament amid opposition objections
The bill was approved during the 13th meeting of the first session of the 13th Parliament after Finance Minister Amir Khosru Mahmud Chowdhury placed it before the House.
The Bank Resolution Bill, 2026, was passed in parliament today (10 April) by a voice vote, amid strong objections from opposition members over its amendments and implications for the banking sector.
The bill was approved during the 13th meeting of the first session of the 13th Parliament after Finance Minister Amir Khosru Mahmud Chowdhury placed it before the House.
Opposition Member of Parliament Saiful Alam Khan Milon raised objections when the finance minister sought permission to present the bill, arguing that the Bank Resolution Ordinance, 2025, should be retained without changes.
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"The Bank Resolution Ordinance, 2025, is not an ordinary legal document; it is the security shield for the hard-earned savings of crores of people in Bangladesh; repealing this ordinance means destroying the protection system of millions," he said.
He added, "If this ordinance is repealed, bank looters will get the opportunity to escape through legal loopholes. In the past, massive amounts of money from general taxpayers were spent to save crisis-ridden banks.
"This ordinance prevents the wastage of public money and shows the way to resolve crises from private sources; if it is repealed, the tax money of common people will once again face risk."
Saiful Alam further said that influential individuals often operate behind the scenes in banks without formal accountability, and if the ordinance is cancelled, they will have the protection to continue.
In response, the finance minister said the amendments were necessary to strengthen the banking sector and reduce pressure on public finances.
"Capital restoration through private initiatives is essential to reduce the massive financial pressure on the government in the banking sector; this will protect the interests of innocent general shareholders and increase the confidence of investors in the capital market," he said.
Referring to the proposed framework, he added, "We have created a 'new window' or an Alternative Resolution Option to resolve the crisis of banks, through which an opportunity will be created to recover assets and liabilities with the assistance of investors without relying on liquidation."
Amir Khosru also said, "Discipline, stability, and good governance in the financial sector – these three are well-established party policies of the BNP in managing the financial sector; we will not move from this ideological position."
Speaker Hafiz Uddin Ahmed said there were no clause-by-clause amendments to the bill.
The Bank Resolution Ordinance, 2025 was issued by the interim government on 9 May 2025 to address capital shortfalls, financial distress, insolvency, and other risks facing scheduled banks, with the aim of ensuring financial stability.
On 2 April, a parliamentary special committee submitted its report after reviewing 133 ordinances issued during the interim government's tenure.
The committee recommended that 98 ordinances be introduced in their original form, 15, including the Bank Resolution Ordinance, in amended form, and 16 be brought later after further scrutiny, while four were recommended for repeal.
The passed law includes several provisions aimed at strengthening oversight and managing troubled banks.
Under the framework, Bangladesh Bank has been given enhanced powers to intervene in weak banks, including suspending business activities, limiting shareholder rights, appointing administrators, dissolving boards, or forming new management structures.
The law also allows for the temporary transfer or merger of crisis-ridden banks with stronger institutions. A process has already begun to merge five Shariah-based banks – Exim, Social Islami, First Security Islami, Union, and Global Islami Bank.
A new concept of a 'Bridge Bank' has been introduced to facilitate the restructuring of weak banks, allowing them to stabilise before potential sale.
The legislation provides for the establishment of a dedicated Bank Resolution Department and a Resolution Fund within Bangladesh Bank to carry out resolution activities.
It also includes provisions to hold individuals personally liable for a bank's failure, with penalties of up to Tk50 lakh and additional daily fines for violations.
To protect stakeholders, the law предусматриes compensation for shareholders if they incur greater losses during the resolution process than they would have faced under liquidation.
In addition, the bill places priority on repaying depositors in the event of a bank's closure, ensuring that their claims are addressed first.
