BSS
  11 Jun 2026, 18:00

Govt spending Tk 40,000 cr to recapitalise weak banks, restore financial stability

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SANGSAD BHABAN, June 11, 2026 (BSS) – Finance Minister Amir Khosru Mahmud Chowdhury today said that the government is spending around Tk 40,000 crore in the current fiscal year to recapitalise weak banks as part of a broader effort to restore discipline and stability to the financial sector.

“It is worth noting that the government is having to spend more than Tk 40,000 crore in the current fiscal year for the recapitalization of banks,” he said.

The Finance Minister made the remarks while placing the national budget for FY2026–27 in Parliament, saying that strengthening the financial sector is a key medium-term priority alongside restoring economic stability and sustaining private investment.

He said the recapitalisation programme is being implemented alongside management reforms and the introduction of a risk-based supervisory framework to ensure long-term resilience in the banking system.

According to the minister, the main objective is to restore the financial health of weak banks and rebuild public trust that has been undermined by irregularities and rising non-performing loans. 

He added that efforts are underway to reduce bad loans, improve transparency in loan approval and rescheduling processes, and strengthen accountability in bank management.

The finance minister also said steps are being taken to restructure vulnerable banks to safeguard depositors’ funds. 

In addition, he said, initiatives are underway to recover money laundered abroad, while political interference and family influence in banking operations have been curbed through legal amendments.

He further noted that international standards-based risk management, capital adequacy requirements, and stronger corporate governance will be enforced to make financial institutions more stable and competitive.