Finance Minister Amir Khosru Mahmud Chowdhury on Wednesday assured that depositors of the country's troubled five banks will receive their money back in full, along with interest, and categorically ruled out any "haircut" on deposits.
Responding to a notice from BNP reserved-seat MP Rahana Akter Ranu, he 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," the minister said.
He said the affected banks are operating at heavy 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.
Khosru gave an unequivocal assurance that depositors will not face any reduction in the value of their savings. "There will be no haircut. The question of a haircut does not arise," he said, responding to concerns raised by the BNP lawmaker.
He acknowledged the severe human suffering caused by the crisis, noting that many depositors are unable to pay for medical treatment or arrange family necessities because their savings remain 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," the minister said.
He, however, cautioned that resolving the crisis will 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.
Khosru outlined the government's banking sector recovery strategy, saying a comprehensive resolution framework has been established under the Bank Resolution Act, 2026 to restore stability in the financial sector.
Under the 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 named Combined Islami Bank PLC, which he described as the most significant resolution measure undertaken so far.
The minister said the merger has protected the interests and claims of all depositors of the five banks.
He also noted that the Deposit Protection Act, 2026 has doubled the insured deposit limit from Tk 100,000 to Tk 200,000 and extended deposit protection to finance companies, which were previously outside the scheme.
According to Khosru, depositors of banks under resolution are already receiving their money in phases in line with Bangladesh Bank's resolution scheme.
He said special forensic audits are underway to identify those responsible for loan irregularities in the five banks, with asset recovery measures to follow based on the audit findings.
The minister added that Section 57 of the Bank Resolution Act empowers Bangladesh Bank to seize and control assets, income and property acquired through misappropriated bank funds, enabling authorities to recover money through asset sales and auctions.
He also said the government has launched civil as well as criminal proceedings to recover defaulted loans and repatriate funds allegedly laundered abroad.
Around 30 affected banks have initiated the process of appointing nine international legal firms on a "no win, no fee" basis after signing non-disclosure agreements to pursue recovery of overseas assets, Khosru said.
Among 11 priority cases, civil proceedings have already begun against business groups and individuals, including S Alam, Beximco, Sikder Group, Nassa Group and Orient Group, he added.
During the debate, Rahana Akter Ranu welcomed the government's commitment but expressed concern that auctioning domestic assets alone will not be sufficient, claiming those responsible had siphoned off amounts many times greater than the value of their assets in Bangladesh.
She also urged the government to formally withdraw any proposal for a "haircut" on deposits, arguing that the burden of bank fraud should not fall on innocent depositors who had trusted the banking system with their savings.
The BNP lawmaker referred to demonstrations by depositors outside the finance minister's residence in Chattogram and said about 75 lakh customers were anxiously waiting for the return of their money.
She demanded that those responsible for looting banks be brought back to Bangladesh and compelled to repay the stolen funds.