Economists and politicians censured the ruling party, led by the Bangladesh Nationalist Party, for passing the Bank Resolution Act with scopes for previous owners of five crisis-hit banks, including the controversial S Alam Group, to get back their ownership.
They expressed concerns that the new act would not only undermine the much-needed reform initiated by the interim government in the scam-hit banking sector but also pave the way for the rehabilitation of the plunderers largely responsible for triggering the economic crisis in 2023 and accelerating the ouster of the Awami League regime on August 5, 2024 in the wake of a mass uprising.
The Jatiya Sangsad on Friday approved the Bank Resolution Act 2026 by amending the earlier ordinance issued in 2025 during the interim government to merge the banks and sell those to foreign investors.
Instead of implementing the underlying aspirations of the July mass uprising, the motive of the ruling party, which won an overwhelming majority in the February 12 JS elections, with the banking sector has become questionable, said economists and politicians.
The key accusation against ousted Sheikh Hasina has been indulging the bank plunderers and money launderers, said former Jahangirnagar University economics professor Anu Muhhmmad, adding that the appointment of a readymade garment businessman as the central bank governor carried important signals.
Instead of undertaking a proper investigation of the bank plunderers, the opportunity for rehabilitating them is unfortunate and disappointing, he said on Monday, two days after the controversial act was passed in the Jatiya Sangsad amid a note of dissent by the opposition party Bangladesh Jamaat-e-Islami.
While the banking sector mismanagement is still a big concern, the new move by the ruling party may prove a suicidal act, said Biplobi Workers’ Party general secretary Saiful Haque
The passage of the new act also came five days after the finance and planning minister in a statement in the Jatiya Sangsad named the country’s top 20 loan defaulting entities, including 10 companies linked to the controversial S Alam Group
Referring to the previous BNP tenure between 2001 and 2006, marked by controversies in the banking sector, including the bankruptcy of the Oriental Bank, politicians and economists also observed that the party too often gave concessions to wrongdoers.
The BNP protects interests of plunderers and the moneyed class, said Communist Party of Bangladesh general secretary Ruhin Hossain Prince.
The amount of non-performing loans in the banking sector stood at Tk5,44,831.88 crore as of December 2025 because of a series loan scams, hostile takeover, money laundering over the past 15 years with the top 20 defaulting entities — 10 linked to the S Alam Group and the others linked to the Beximco Group, Sikder Group, Deshbandhu Group, Rongdhanu Group and Pacific Bangladesh Telecom Limited — held around Tk 40,000 crore in bad loans.
The latest update released by Moody’s, a leading global credit rating and research agency, retained the Bangladesh negative outlook on the country’s banking system reflecting heightened risks from surging NPLs, weak governance, and poor asset quality, compounded by a weakening operating environment.
Zahid Hussain, former lead economist of the World Bank Dhaka office, already stated that the new act would reward those responsible for the banks’ collapse while pointing out that the law did not require the prior recovery of the misappropriated loans, raising concerns over ethical standards.
The new act created uncertainties about the merger of the five sick banks — Social Islami Bank, First Security Islami Bank, Union Bank, Global Islami Bank used to be controlled by the S Alam Group and EXIM Bank by the NASSA Group — envisaged under the ordinance issued during the interim government.
After a year of merger efforts, asset quality reviews and substantial public fund injections indicate that this move risks undoing the entire restructuring process, said Zahid Hossain.
He warned that they might borrow again from the banking system to finance their comeback and stay in power, which would deepen the existing vulnerabilities.
Ganosamhati Andolan acting coordinator Dewan Abdur Rashid Nilu said that the chronic banking sector crisis would deepen further following the new move.
The best international practices should be followed in addressing the problems, he added.
Rashtra Sanskar Andolan president Hasnat Quaiyum said that the old owners would get unusual privileges and be able to return to the banks due to changes in the act.
It seems that the ruling party, Ruhin Hossain Prince earlier said, is under pressure from controversial groups although such things should not have happened in the interest of the depositors.
