Bank owners fear return of former directors under amended resolution act

Leaders of the Bangladesh Association of Banks (BAB) have expressed concern over a provision in the amended Bank Resolution Act that could allow former bank owners to return to the banking sector.

The concerns were raised today (11 May) following a meeting with Bangladesh Bank Governor Md Mostaqur Rahman.

Speaking to reporters after the meeting, BAB President and Dhaka Bank PLC Chairman Abdul Hai Sarker said bank owners were worried about a clause in the amended law that could pave the way for the return of individuals accused of irregularities in the banking sector.

The meeting was also attended by former FBCCI president and Shahjalal Islami Bank PLC director AK Azad, United Commercial Bank PLC Chairman Sharif Zahir, Pubali Bank PLC Chairman Monzurur Rahman and Bank Asia PLC Chairman Romo Rouf Chowdhury.

Abdul Hai Sarker said those who had taken money out of banks in the past should not be allowed to return to the sector.

"We are worried because the amended law appears to create an opportunity for those who looted banks to return," he said.

He warned that if individuals previously involved in irregularities and financial misconduct re-enter the banking sector, it could create fresh instability.

"People already know who was involved in taking money from banks. Allowing them to return will further erode public confidence in the banking sector and may trigger a new crisis," he added.

According to the BAB president, the governor assured bank owners that former directors would not be able to return unless all conditions under Section 18(A) of the amended law were fully met.

He also said the ongoing merger process involving five banks would continue.

Abdul Hai Sarker further said important policy decisions such as amendments to banking laws should be discussed with stakeholders beforehand to ensure broader acceptance and effective implementation.