Revised Bank Resolution Bill gets approval
Parliament on Thursday approved the Bank Resolution Bill, 2026, by voice vote, despite strong objections from opposition members over amendments to the earlier ordinance.
The bill was passed during the 13th sitting of the first session of the 13th National Parliament after being placed before the House by Finance Minister Amir Khasru Mahmud Chowdhury.
Opposition MP Saiful Alam Khan Milon objected when the minister sought permission to introduce the bill, arguing that the Bank Resolution Ordinance, 2025 should be retained.
He described the ordinance as a critical safeguard for depositors, stating, “The Bank Resolution Ordinance, 2025, is not an ordinary legal document; it is the security shield for the hard-earned savings of crores of people in Bangladesh; repealing this ordinance means destroying the protection system of millions.”
He warned that repealing the ordinance could create loopholes, saying, “If this ordinance is repealed, bank looters will get the opportunity to escape through legal loopholes.”
Referring to past bailouts, he added that significant public funds had previously been used to support troubled banks and cautioned that removing the framework could once again expose taxpayers to financial risk.
He maintained that the ordinance had encouraged resolving banking crises through private-sector mechanisms rather than relying on state resources.
Milon also highlighted concerns about governance, noting that “in many banks, powerful individuals operate from behind the scenes and loot banks without having their names on the boards.”
He cited cases such as Islami Bank and alleged influence linked to S Alam, arguing that the ordinance introduced provisions to identify and regulate such “shadow directors”.
He described these measures as a “landmark step” towards accountability and warned that their removal could weaken oversight.
In response, the finance minister defended the revised legislation, emphasising the importance of private-sector-led capital restoration to ease pressure on the government.
He said this approach would help protect shareholders and improve investor confidence in the capital market.
He further explained, “We have created a ‘new window’ or an Alternative Resolution Option to resolve the crisis of banks, through which an opportunity will be created to recover assets and liabilities with the assistance of investors without relying on liquidation.”
He added that discipline, stability and good governance remain central to his party’s financial sector policies.
Speaker Hafiz Uddin Ahmed confirmed that no clause-by-clause amendments were raised during the session.
Earlier, 133 ordinances issued by the interim administration were reviewed by a parliamentary committee, which recommended that 15 — including the Bank Resolution Ordinance — be enacted as amended bills.
The original ordinance, issued on 9 May 2025, introduced measures to address capital shortfalls, financial distress and insolvency risks in scheduled banks, with the aim of maintaining financial stability.
