Dhaka: The government has initiated steps to eliminate the contentious Section 18(a) of the Bank Resolution Act, a section that has faced criticism for potentially enabling former bank shareholders to regain control over shares, assets, and liabilities. Finance Minister Amir Khosru Mahmud Chowdhury presented the Bank Resolution (Amendment) Bill, 2026, in Parliament on Thursday. The proposal was subsequently forwarded to the Parliamentary Standing Committee on the Ministry of Finance for review, with a report expected within two working days.
According to United News of Bangladesh, the bill seeks to repeal Section 18(a) of the Bank Resolution Act. This provision was originally absent from the Bank Resolution Ordinance issued by the interim government and was later incorporated following amendments approved under the BNP-led government. The section has been a focal point of controversy since the enactment of the Bank Resolution Act, with critics arguing that it could facilitate the return of former and disputed bank directors and shareholders to ownership roles.
The controversial provision allowed shareholders who previously held shares in a bank, prior to its resolution process, to apply to Bangladesh Bank for reacquisition of the bank's shares, assets, and liabilities. Furthermore, it enabled Bangladesh Bank to extend this opportunity to other suitable candidates. The provision has garnered particular scrutiny in the context of the merger involving five troubled Islamic banks into Sammilito Islami Bank PLC, raising concerns over the potential reinstatement of former directors and shareholders associated with the banks.
In light of the criticism, the government resolved to eliminate the provision. Finance Minister Amir Khosru, in the statement of objects and reasons accompanying the amendment bill, stated that repealing the provision is warranted, as no individual or institution has applied under the complete conditions outlined in the section since the law's enactment.
In other parliamentary proceedings, Bangladesh Jamaat-e-Islami lawmaker Nazibur Rahman sought permission to introduce a private member's bill proposing amendments to the Government Money and Budget Management Act. The finance minister addressed the matter, urging the lawmaker to withdraw the bill. Nazibur declined to withdraw his proposal, which was subsequently put to a vote in the House. The proposal failed to secure the necessary support, and as a result, the lawmaker was not granted permission to introduce the bill.