TIB strongly criticizes “Bank Resolution Act 2026”

Staff Report: PNN

Transparency International Bangladesh (TIB) has expressed concern over the newly formulated “Bank Resolution Act 2026”, stating that it allows former shareholders of weak and merged banking institutions to return to ownership.

The organization said that instead of ensuring accountability for those responsible for banking failures, the law opens a pathway for their rehabilitation.

In a statement issued on Monday (13 April), TIB Executive Director Iftekharuzzaman said that the new provisions included in the law have reduced the scope for strict action against those responsible for banking irregularities. Instead, it creates a structure of immunity, which could increase future risks in the banking sector.

He noted that under the previously issued “Bank Resolution Ordinance–2025”, those involved in irregularities could compensate financially but were not allowed to return to ownership. However, the removal of that restriction in the new law has raised serious governance concerns.

According to TIB, this decision may further institutionalize long-standing irregularities and accountability crises in the banking sector instead of resolving them. The organization’s executive director also said that instead of punishment, those responsible are effectively being rewarded.

He further said that to ensure sustainable reforms in the banking sector, effective accountability for those involved in irregularities is essential. Otherwise, allowing restoration of ownership rights could undermine the reform process and negatively impact the overall economy.

TIB urged the government to reconsider the law to ensure that it does not serve the interests of any special group under the guise of protecting banking stability and depositors’ interests.