The Bank Resolution Ordinance Bill issued during the interim government was passed by the National Assembly last Friday. However, a new clause has been added to it. As stated in this section, the old shareholders of the merged weak bank have an opportunity to return to the ownership of the bank.
Section 18(a) of the bill states that, notwithstanding any other law in force for the time being or any other provisions of this law, the share holder or share holders before being listed under the Bank Resolution Ordinance 2025 or the person deemed suitable by Bangladesh Bank can apply to Bangladesh Bank as the resolution authority to re-hold or hold the shares, assets and liabilities of that bank. However, a separate undertaking is required to apply for re-holding of shares.
Among the pledges to be made are – Willingness to manage the bank by paying all the money given by the government or Bangladesh Bank before or after the resolution. b. To re-establish the bank’s financial capacity by providing new capital as determined by Bangladesh Bank and filling the existing capital shortfall. c. Full return of loans, loan interest or profits, equity, guarantees, all forms of financial assistance or other benefits from the Government, Bangladesh Bank or other public, statutory bodies or semi-public sources. d. Valid claims and liabilities of pre-merger depositors, domestic and foreign creditors and third parties shall be duly settled. e. All tax and non-tax revenue and other financial liabilities of the government will be paid in full.
It is stated in sub-section (3) of this section, within three months of the final approval of the application, a pay order of 7 and a half percent of the amount deposited by the government or Bangladesh Bank before the transfer of the actual possession of the previous share, asset-liability or holding shall be paid.
According to sub-section (4), the remaining 92 and a half percent of the shares given by the government or Bangladesh Bank shall be returned with simple interest at the rate of 10 percent within two years of the transfer.
Much of the basic structure of the Ordinance was passed in the Bill. These include resolution authority of Bangladesh Bank, appointment of administrators, increase of capital, transfer of assets and liabilities to third parties, bridge banks, government assistance, resolution fund, termination and identification of responsible persons.
