Depositors to be fully repaid

Finance Minister Amir Khosru Mahmud Chowdhury on Wednesday assured Parliament that depositors of the country’s five troubled banks would receive their savings in full, along with interest, ruling out any possibility of a “haircut” on deposits.

Responding to a notice raised by BNP reserved-seat MP Rahana Akter Ranu, the minister acknowledged the hardship faced by millions of depositors, describing the banking crisis as “a heartbreaking situation” inherited by the government.

“I have already said in Parliament that all depositors will get their deposits back with interest, Insha-Allah.

However, they will have to be a little patient,” he said. Khosru said the affected banks were operating at substantial losses, making it difficult to repay depositors immediately while also paying interest.

“These banks are all running at a loss, and those losses are increasing every day. You have to understand how difficult it is for a loss-making bank that cannot even return deposits to also pay interest.

Even so, an elected government is committed to protecting the interests of the people,” he told the House.

Giving an unequivocal assurance, the finance minister said depositors would not suffer any reduction in the value of their savings.

“There will be no haircut. The question of a haircut does not arise,” he said in response to concerns raised by the BNP lawmaker.

He acknowledged the human impact of the crisis, saying many depositors had been unable to meet essential expenses because their savings remained inaccessible.

“I know people cannot afford to wait. Some are dying without treatment, while others cannot arrange their daughters’ marriages. I face these problems every day,” Khosru said.

He cautioned, however, that resolving the banking crisis would require a medium- to long-term approach.

“It will take some time, but I can assure you that depositors will receive their money back with interest,” he added.

Outlining the government’s strategy to restore stability to the financial sector, Khosru said a comprehensive resolution framework had been established under the Bank Resolution Act, 2026.

As part of that framework, five troubled Islamic banks—Export Import Bank of Bangladesh (EXIM Bank), First Security Islami Bank, Global Islami Bank, Social Islami Bank and Union Bank—have been merged into a new entity, Combined Islami Bank PLC, which he described as the most significant banking resolution measure undertaken so far.

He said the merger had safeguarded the interests and claims of all depositors of the five banks.

The minister also said the Deposit Protection Act, 2026 had increased the insured deposit limit from Tk100,000 to Tk200,000 and extended deposit insurance coverage to finance companies, which had previously been excluded from the scheme.

According to Khosru, depositors of banks undergoing resolution are already receiving their funds in phases in accordance with Bangladesh Bank’s resolution plan.

He said special forensic audits were under way to identify those responsible for loan irregularities at the five banks, after which asset recovery measures would be taken based on the findings.

Khosru said Section 57 of the Bank Resolution Act authorises Bangladesh Bank to seize and control assets, income and property acquired through the misuse of bank funds, enabling the authorities to recover money through asset sales and auctions.

He added that the government had launched both civil and criminal proceedings to recover defaulted loans and repatriate funds allegedly laundered overseas.

Around 30 affected banks have also begun appointing nine international legal firms on a “no win, no fee” basis, following the signing of non-disclosure agreements, to pursue the recovery of assets held abroad, he said.

Among 11 priority cases, civil proceedings have already been initiated against several business groups and individuals, including S Alam, Beximco, Sikder Group, Nassa Group and Orient Group.

Taking part in the discussion, Rahana Akter Ranu welcomed the government’s assurance but questioned whether the sale of domestic assets alone would be sufficient to recover the losses, arguing that the funds allegedly siphoned abroad far exceeded the value of assets remaining in Bangladesh.

She also urged the government to formally withdraw any proposal involving a “haircut” on deposits, saying innocent depositors should not bear the consequences of banking fraud.

Referring to demonstrations by depositors outside the finance minister’s residence in Chattogram, the BNP lawmaker said around 75 lakh customers were anxiously awaiting the return of their savings.

She called for those responsible for bank fraud to be brought back to Bangladesh and compelled to return the misappropriated funds.