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SANGSAD BHABAN, Sept 9, 2026 (BSS) - The Jatiya Sangsad today passed the Bank Resolution (Amendment) Bill, 2026 seeking to scrap the Section 18 (a) of the Bank Resolution Act, which had previously drawn criticism for potentially allowing former shareholders of banks brought under resolution to regain ownership of shares, assets and liabilities.

Finance Minister Amir Khosru Mahmud Chowdhury moved the Bank Resolution (Amendment) Bill, 2026 in Parliament today which was later passed by voice vote. The Parliamentary Standing Committee on the Ministry of Finance also submitted its report on the bill.

During the passage of the bill, the Finance Minister said the government has decided to repeal Section 18 (a) of the Bank Resolution Act, 2026, as no individual or institutional investor came forward to meet the strict regulatory criteria laid down in the provision. 

Khosru explained that Section 18 (a) was originally incorporated to provide a market-based alternative framework for restructuring distressed scheduled banks. “The primary goal was to address capital deficits and liquidity shortages, protect depositors and investors, and reduce the burden on public exchequer funds without liquidating the affected financial institutions,” he said. 

He said Section 18 (a) contained stringent terms spanning two pages designed to ensure that only eligible and capable entities could participate in bank restructuring.

"However, since the enactment of the law, no shareholder, person, or institution has met all the full compliance conditions. As the underlying objective of the section could not be realized in practice, we have decided to scrap it."

Khosru also urged lawmakers to focus strictly on the core legislative business of the House, emphasizing the importance of maintaining parliamentary decorum and purpose.

According to the bill, Section 18 (a) of the Bank Resolution Act will be repealed.

The provision was not included in the Bank Resolution Ordinance issued by the interim government. It was later incorporated when the ordinance was amended and approved after the BNP-led government assumed office.

Section 18(a) had become a point of controversy following the passage of the Bank Resolution Act, as critics said the provision could create an avenue for former and disputed directors and shareholders of banks undergoing resolution to return to ownership.

Under the provision, shareholders who held shares in a bank before it was brought under a resolution process could apply to Bangladesh Bank to acquire shares, assets and liabilities of the bank again.

The provision also allowed Bangladesh Bank to provide the same opportunity to another suitable person.

The provision had attracted particular attention in connection with the merger of five troubled Islamic banks into Sammilito Islami Bank, amid concerns over the possible return of former directors and shareholders associated with the banks.

The government later decided to remove the provision following the criticism.

In the statement of objects and reasons attached to the amendment bill, Finance Minister Amir Khosru Mahmud Chowdhury said repealing the provision was appropriate as no person or institution had so far applied under the full conditions stipulated in the section since the law came into effect.