Ecnec clears Tk 1,276cr WB-funded project to overhaul banking sector
The Executive Committee of the National Economic Council (Ecnec) on Tuesday approved a comprehensive Tk 1,276 crore project designed to strengthen banking-sector supervision, reinforce financial safety nets, upgrade technological infrastructure, and build institutional capacity for bank resolution and restructuring.
The project, titled Financial Sector Support Project-II, will be implemented by Bangladesh Bank from July 2026 to June 2031 with primary financing from the World Bank’s International Development Association.
The initiative comes at a critical time as Bangladesh’s banking sector grapples with nearly 33 percent non-performing loans, weak governance, severe capital and liquidity pressures at several institutions, and outdated technological systems.
Out of the total project budget, Tk 1,077 crore has been earmarked for capital expenditure, which includes Tk 712 crore for ICT hardware equipment and Tk 355 crore for specialized banking software and database architecture.
The initiative will also fund extensive training and consultancy services to enhance supervisory capacity and reduce vulnerability to emerging threats such as cyber attacks and complex cross-border financial activities.
According to project documents, performance-based conditions will be introduced to enhance the Deposit Insurance Trust Fund, streamline payout timelines to depositors, improve bank restructuring frameworks, and enforce stricter governance across state-owned commercial banks. Planning Commission officials noted that the reform project will bolster systemic financial stability and rebuild depositor confidence across the financial sector.
Chaired by Prime Minister Tarique Rahman at the Bangladesh Secretariat, the Ecnec meeting approved a total of 13 development projects involving a combined outlay of Tk 15,823.57 crore.
Of the total allocation, Tk 10,188.33 crore will be mobilized from government funds, Tk 5,252.96 crore from foreign loans, and Tk 451 crore from the implementing agencies’ internal resources.
The committee also approved a third revision to the Hazrat Shahjalal International Airport expansion project, elevating its total cost to Tk 22,213 crore from Tk 21,365.51 crore under the second revision.
Planning Commission observations attributed the latest cost revision to additional ongoing maintenance expenses, inclusion of new physical components, and contractual price adjustments.
Among other major initiatives, Ecnec approved health-sector projects aimed at combating TB, HIV/AIDS, and malaria, alongside the revised setup for Patuakhali Medical College and Hospital.
Social welfare projects were cleared to expand physical and intellectual disability training centers and hostels in Chattogram, Khulna, and Rajshahi.
In the water resources sector, funding was sanctioned for flood management in the Bamni River Basin and riverbank protection works along the Meghna River in Bhola.
Additional approvals covered digital land-management surveys across three city corporations, rural infrastructure upgrades in Madaripur, Shariatpur, and Rajbari, land acquisition for a solar power plant in Sonagazi, and electricity grid expansion across the Chittagong Hill Tracts.
