Editors' Council, the country's top newspaper editors' organization, has expressed deep concern over the controversial Section 18(a) of the proposed Bank Resolution Act, 2026.
According to the organization, if this section is implemented, it may create an opportunity for individuals or groups involved in irregularities and corruption in the banking sector to return to ownership of banks, which may weaken efforts to establish reforms and good governance in the banking sector.
The issue was raised in a meeting between a delegation of Editors' Council and the governor of the central bank at the head office of Bangladesh Bank on Monday (June 8).
Editors' Council president and New Age editor Nurul Kabir gave this information in a briefing to journalists after the meeting.
He said that the country's banking sector is currently going through a multi-dimensional crisis. A detailed discussion was held with the governor on various issues including the huge amount of defaulted loans, the financial condition of weak banks, the security of depositors' money, the instability of the foreign exchange market and the slow pace of banking sector reforms.
In the meeting, the central bank governor informed the editors about the various ongoing initiatives and future work plans for banking sector reforms.
He assured taking necessary steps to control defaulted loans, restructure weak banks, re-establish confidence in the financial sector and strengthen regulatory supervision.
The leaders of the Editors’ Council said that the various instabilities created in the banking sector in recent times have created concerns among ordinary depositors. As a result, restoring people's confidence in the banking system is now the biggest challenge.
The meeting also exchanged views on the current situation surrounding Islami Bank Bangladesh PLC, inflation control, slow investment in the private sector, employment challenges and various aspects of the proposed budget for FY27.
The meeting was attended by Prothom Alo editor Matiur Rahman, Manab Zamin editor Matiur Rahman Chowdhury, Bonik Barta editor Dewan Hanif Mahmud, Financial Express editor Shamsul Haque Zahid, Samakal editor Shahed Mohammad Ali, Inqilab editor AMM Bahauddin, Daily Sun editor Md Rezaul Karim Lotus, Sangbad editor Altamas Kabir, Agamir Shomoy editor Mostafa Mamun, and Karatoa editor Md Mozammel Haque, along with other members of the council.
Why is Section 18(a) controversial?
Economists, bankers and various circles have already started discussing Section 18(a) of the proposed Bank Resolution Act, 2026.
According to those concerned, this section provides an opportunity for former shareholders or directors of a weak bank that has gone through the resolution or merger process to return to ownership under certain conditions.
Critics fear that if individuals or groups whose decisions in the past have weakened or put a bank in crisis are given the opportunity to return to ownership, it could hinder accountability in the banking sector.
At the same time, it could also conflict with the main objective of financial sector reform.
What BB governor said
In the meeting, the governor said that the central bank is continuously working to establish good governance in the financial sector, improve the management of weak banks, control non-performing loans, expand digital banking and ensure overall financial stability.
He also said that some administrative and managerial changes have already been completed in the merger process of weak banks. Once the development and coordination of the core banking system (CBS) of the concerned banks is completed, the restructuring process will move forward more quickly.
The governor said that the necessary amendments to the Artha Rin Adalat Act 2003 are under process for the speedy disposal of defaulted loan cases.
In addition, initiatives have been taken to formulate the 'Distressed Asset Management Company Act' for the management of long-standing non-performing loans.
The governor said in the meeting that assets worth $25 million have already been seized in the UK as part of money laundering and stolen asset recovery. He said that the process of quickly bringing these assets back to the country is underway.
The governor said that Bangladesh Bank has taken various steps to restructure the boards of directors of several large banks, including Shariah-based banks, make changes in management, and protect the interests of depositors. Through these initiatives, efforts are being made to restore confidence in the banking system.
