Recover looted assets before bank bailouts: BAB
BAB wants resolution framework to block return of those behind bank distress
Bank owners have urged the government to recover looted assets and hold willful defaulters accountable before injecting Tk40,000 crore of public money into weak banks, warning that recapitalisation alone will not restore confidence in the country's troubled banking sector.
Welcoming the FY2026-27 budget, the Bangladesh Association of Banks (BAB) in a statement today (14 June) said the bailout package should be matched by aggressive asset recovery efforts and reforms that prevent those responsible for bank failures from regaining influence over financial institutions.
The statement said public funds committed to restoring weak banks will achieve lasting results only when matched by swift legal recovery of misappropriated assets, decisive enforcement against willful defaulters, and transparent treatment of shareholdings acquired through irregular means.
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The association also called for the creation of an Asset Management Company (AMC) to tackle the mounting burden of bad loans and help repair the balance sheets of weak banks, saying the absence of a dedicated budget allocation for such an entity was a missed opportunity.
BAB also said the proposed bank resolution framework should carry clear safeguards ensuring that parties whose conduct contributed to the distress of financial institutions cannot re-enter the system.
