The Bank Resolution (Amendment) Bill has been passed in the National Parliament. Finance Minister Amir Khasru Mahmud Chowdhury introduced the bill in parliament on Wednesday (September 9).
It was later passed by voice vote. The report of the Parliamentary Standing Committee on the Ministry of Finance was also presented at this time.
The minister stated that the decision was taken to repeal Section 18(A) of the Bank Resolution Act because no individual or institutional investor came forward fulfilling the strict regulatory conditions laid out in the clause.
He explained that Section 18(A) was initially added to create a market-based alternative framework for restructuring troubled scheduled banks.
Its goal was to address capital shortfalls and liquidity crises, protect depositors and investors, and reduce pressure on public funds by avoiding bank liquidation.
The finance minister noted that strict conditions were included in the clause to ensure the participation of eligible and capable institutions or individuals. However, since the law came into effect, no individual, shareholder, or institution could fully meet those conditions.
As the primary objective of the clause remained unfulfilled, the decision was taken to scrap it.
According to the bill, Section 18(A) of the Bank Resolution Act, 2026 will be completely repealed.
Section 18(A) was not part of the Bank Resolution Ordinance issued by the interim government.
It was added later when the BNP-led government assumed power and amended the ordinance while approving it as a law.
Controversy arose following the passage of the Bank Resolution Act. Critics expressed concerns that this clause could allow former or controversial directors and shareholders of banks undergoing resolution to regain ownership.
Under the clause, shareholders holding equity in a bank before it entered the resolution process could apply to Bangladesh Bank to re-acquire the bank's shares, assets, and liabilities.
The provision also extended the same opportunity to any other suitable individual or institution.
Section 18(A) drew particular scrutiny amid concerns over the potential return of former directors and shareholders during the process of merging five troubled Islamic banks to form Sammilito Islami Bank.
In the face of criticism, the government subsequently decided to repeal the clause.
In the statement of objectives and reasons for the bill, the finance minister stated that since no individual or institution has applied fulfilling all the prescribed conditions since the law took effect, repealing the section is the appropriate course of action.
