BAB flags risk in law

Leaders of the Bangladesh Association of Banks (BAB) have expressed concern that a provision in the amended Bank Resolution Act could allow former bank owners and directors accused of irregularities to re-enter the banking sector.

The issue was discussed during a meeting on Monday with Md Mostaqur Rahman at Bangladesh Bank.

Speaking to reporters afterwards, BAB President and Dhaka Bank PLC Chairman Abdul Hai Sarker said that bank owners fear the clause may create an opportunity for individuals previously linked to banking misconduct to regain influence.

The meeting was attended by several senior bankers and business figures, including former Federation of Bangladesh Chambers of Commerce and Industry president and Shahjalal Islami Bank PLC director AK Azad, United Commercial Bank PLC Chairman Sharif Zahir, Pubali Bank PLC Chairman Monzurur Rahman, and Bank Asia PLC Chairman Romo Rouf Chowdhury.

Sarker emphasised that individuals who had previously siphoned funds from banks should not be allowed to return.

“We are concerned because the amended law appears to create room for those who looted banks to come back,” he said.

He warned that permitting individuals involved in past financial misconduct to re-enter the sector could undermine stability.

“People already know who was responsible for taking money out of banks. If they are allowed to return, public confidence in the banking sector will decline further and a new crisis could emerge,” he added.

The BAB president said the Bangladesh Bank governor reassured bank owners that former directors would not be allowed to return unless they fully met the conditions outlined in Section 18(A) of the amended law.

Sarker also noted that the ongoing merger process involving five banks would continue as planned.

He stressed that significant policy decisions, particularly amendments to banking laws, should be discussed with stakeholders in advance to ensure broader acceptance and effective implementation.