Bank Resolution Act: Provision allowing ex-owners to regain control of troubled banks to be scrapped

The government has moved to scrap a controversial provision of the Bank Resolution Act that could allow former shareholders to regain control of banks after they are brought under a resolution process.

Finance Minister Amir Khosru Mahmud Chowdhury placed the Bank Resolution (Amendment) Bill, 2026 in Parliament today (3 September).

The bill was later sent to the Parliamentary Standing Committee on the Ministry of Finance, which was asked to scrutinise it and submit its report within two working days.

According to the bill, Section 18(a) of the Bank Resolution Act will be repealed.

The provision has drawn criticism since the passage of the law, as critics said it could create an avenue for former and disputed directors and shareholders to return to ownership of banks under resolution.

Under Section 18(a), shareholders who held shares in a bank before it was brought under a resolution process could apply to Bangladesh Bank to acquire shares, assets and liabilities of the bank again.

The provision also allowed Bangladesh Bank to offer the same opportunity to another suitable person.

The provision was not included in the Bank Resolution Ordinance issued by the interim government. It was later added when the ordinance was amended and approved after the BNP-led government assumed office.

Section 18(a) came under particular scrutiny in connection with the merger of five troubled Islamic banks into Sammilito Islami Bank PLC, amid concerns over the possible return of former directors and shareholders associated with those banks.

The government subsequently decided to remove the provision following the criticism.

In the statement of objects and reasons attached to the amendment bill, Finance Minister Amir Khosru said repealing the provision was appropriate as no person or institution had so far applied under the full conditions stipulated in the section since the law came into effect.

Private bill rejected

Meanwhile, Bangladesh Jamaat-e-Islami lawmaker Barrister Nazibur Rahman Momen sought permission to introduce a private member's bill proposing amendments to the Government Money and Budget Management Act.

Finance Minister Amir Khosru spoke on the matter and requested the lawmaker to withdraw the bill.

Nazibur declined to withdraw it, following which the proposal was put to a vote in the House.

The proposal failed to secure the required support, and the lawmaker was not given permission to introduce the bill.