United News of Bangladesh

Transparency International Bangladesh (TIB) on Monday expressed grave concern over the ‘Bank Resolution Act, 2026,’ claiming that new provisions will facilitate corruption and allow "identified looters" to regain control of the banking sector. The anti-graft watchdog stated that the inclusion of Section 18(a) in the Act guarantees impunity instead of ensuring justice for those responsible for the collapse of weak banks. In a statement, TIB Executive Director Dr. Iftekharuzzaman described the move as "self-defeating," noting that it effectively rewards individuals who plundered the sector. TIB urges cancellation of new Bangladesh Bank governor’s appointment The TIB chief pointed out that the “Bank Resolution Ordinance, 2025”—issued during the interim government—had barred individuals responsible for a bank’s collapse from returning to ownership even if funds were repaid. However, the new 2026 Act reverses this stance. “Whatever justification the government may offer, this decision facilitates and shields corruption. It does not ensure legal accountability; instead, it signals a shift in policy capture, leaving room for the re-emergence of kleptocratic practices,” Dr. Zaman said. TIB questioned the logic behind allowing former owners to re-acquire shares by depositing only 7.5 percent of a government-determined amount, with the remaining 92.5 percent payable over two years at a 10 percent interest rate. “By what magic have the former owners, who pioneered the plundering of this sector, suddenly attained such purity?” Dr. Zaman asked, questioning how these individuals would suddenly be capable of covering capital shortfalls and repaying all depositors. The organization expressed skepticism over the central bank's ability to monitor these conditions, fearing that Bangladesh Bank remains "plagued by conflicts of interest." Call for Reconsideration: The statement further noted that passing such a law by majority vote in Parliament contradicts the ruling party’s electoral manifesto regarding financial sector reforms. TIB warned that without a proper legal process to ensure accountability, no qualitative improvement will occur in the banking sector. The organization urged the government to reconsider the provisions to prevent the burden of deeper insolvency from falling on the general public.