The Parliamentary Standing Committee on the Ministry of Finance has recommended passage of the Bank Resolution (Amendment) Bill 2026 in an amended form and repealing a controversial clause that allowed former shareholders of troubled banks to reclaim shares, assets and liabilities under certain conditions.
The decision came at a committee meeting held at the Jatiya Sangsad Bhavan on Saturday, September 5, according to a Parliament Secretariat statement. The bill was originally tabled and passed by the National Assembly on Thursday, September 3, before being referred to the standing committee for review within two working days.
The interim government had issued the Bank Resolution Ordinance in 2025 to create a legal framework for reorganising or merging distressed banks. The ordinance did not initially include Article 18(a) which was later incorporated into law during the first session of the 13th National Assembly. This clause allowed former shareholders of banks under resolution to apply for reclaiming their shares, assets and liabilities upon meeting specific conditions.
The provision drew strong criticism from opposition parties and the public. On August 10, the Cabinet approved a proposal to repeal Article 18(a), leading to Saturday's committee recommendation.
Speaking to reporters after the meeting Jamaat-e-Islami MP Saiful Alam Khan Milon said the opposition welcomed the repeal also noting that they had long demanded it. However, he argued that the entire Bank Resolution Act needs a fresh review not just this clause.
Milon said the assets and liabilities of the five banks merged to form Combined Islami Bank should have been independently assessed beforehand in line with international standards. He claimed no such assessment was conducted during the merger under the interim government, questioning the basis on which the merger was carried out and urged authorities to evaluate it if still possible.
The five merged banks Exim Bank, First Security Islami Bank, Global Islami Bank, Union Bank and Social Islami Bank received their final license as Combined Islami Bank from Bangladesh Bank on December 1, 2022. Before the merger the Exim Bank was controlled by businessman Nazrul Islam Majumder, while the S Alam Group and its family controlled the other four. This background fuelled debate over Article 18(a) which critics said could allow these same shareholders to regain control.
Following the withdrawal of administrators from the five banks on August 16, Combined Islami Bank began operating under unified management.
Bangladesh Bank data from March shows the five banks' combined default loans stood at Tk.1,65,779 crore or 84.22% of total loans. Combined Islami Bank's paid-up capital is estimated at Tk.35,000 crore, with the government contributing Tk.20,000 crore and the remaining Tk.15,000 crore expected through converting depositors into shareholders.
Committee chairman Mushfiqur Rahman presided over the meeting, attended by Finance Minister Amir Khosru Mahmud Chowdhury, Chief Whip Nurul Islam Moni and members Moinul Islam Khan, Shahadat Hossain and Syed Zainul Abedin.
