Full repayment with interest, no haircut for troubled bank depositors: Finance minister
Khosru said the government was implementing a multi-dimensional resolution framework under the 'Bank Resolution Act, 2026' to address the banking sector crisis.
Depositors of troubled banks will receive their full deposits with interest, with no "haircut" imposed, Finance Minister Amir Khosru Mahmud Chowdhury told parliament today (8 July), though he said the process would take time due to the banks' mounting losses.
He made the remarks in response to an urgent public interest notice under Rule 71 of the Rules of Procedure during the 21st working day of the 13th Parliament's second session.
Earlier, reserved women's seat MP Rehana Akter Ranu demanded strict action against those involved in banking irregularities and money laundering, including auctioning their assets to repay depositors.
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Khosru said the government was implementing a multi-dimensional resolution framework under the "Bank Resolution Act, 2026" to address the banking sector crisis. Under the framework, five troubled banks – EXIM Bank, First Security Islami Bank, Global Islami Bank, Social Islami Bank and Union Bank – have been merged into Islami Bank PLC, with all depositors' claims transferred to and preserved under the new entity.
He said the "Deposit Protection Act, 2026" raised the protected deposit limit to Tk2 lakh from Tk1 lakh. Special forensic audits into loan irregularities and money laundering involving the five banks are underway, with asset recovery and legal action to follow based on investigation findings.
He added that Section 57 of the Bank Resolution Act allows the government to take control of the assets and income of responsible individuals and recover depositors' money through sales or auctions. The government is also working to recover laundered money abroad through international legal firms.
Ranu said corruption and money laundering in the banking sector had left millions of depositors unable to access their savings, creating a humanitarian crisis affecting medical treatment, children's education, marriages and small businesses. She opposed any "haircut" policy, saying depositors should not bear the consequences of bank owners' misconduct.
