Bank Resolution Ordinance to govern liquidity support, merger, liquidation of finance firms: BB
If plans are made to provide liquidity support, liquidate or merge finance companies, such actions will be implemented in accordance with the ordinance.
Measures including liquidity support, liquidation and mergers of finance companies will be carried out under the Bank Resolution Ordinance 2025, Bangladesh Bank has said.
In a circular issued today (21 December), the central bank's Bank Resolution Department stated that Section 95 of the Bank Resolution Ordinance allows authorities to take any resolution measures for financial institutions.
A senior Bangladesh Bank official said that if plans are made to provide liquidity support, liquidate or merge finance companies, such actions will be implemented in accordance with the ordinance.
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The circular said that, under the authority granted by Section 95 of the Bank Resolution Ordinance 2025, and in the interest of maintaining financial stability and protecting public interest, provisions of the ordinance applicable to scheduled banks will also apply to all finance companies licensed under the Finance Company Act 2023.
