Dhaka: Bangladesh Bank has announced a Tk 20,000-crore programme to restructure weak banks, backed by international audits and new legal powers under the Bank Resolution Ordinance 2025. The reform drive will begin within weeks, with the first phase targeting five banks by December.
Governor Ahsan H Mansur confirmed that First Security Islami Bank, Social Islami Bank, Global Islami Bank, Union Bank, and EXIM Bank will undergo restructuring. ICB Islamic Bank, facing unique challenges due to foreign investment exposure, will require a separate solution. Mergers are being considered for several lenders, and equity injections are expected. Mansur said recapitalisation funds from the government will be repaid with returns, ensuring no loss to taxpayers.
International audits led by KPMG and Ernst & Young Sri Lanka have already revealed serious capital shortfalls. Five banks together had a deficit of about Tk 46,000 crore as of December 2024. A donor-supported Asset Quality Review covering 17 private banks, representing 35 percent of total banking assets, will conclude by December. Oversight includes representatives from the IMF, World Bank, and ADB.
The government has allocated Tk 13,000 crore in the current budget for restructuring, with overall miscellaneous allocations rising to Tk 17,442 crore, a 163 percent increase from last year. Financing will also draw on donor support, with the ADB expected to provide $1.5 billion and the World Bank $1 billion.
The plan aims to stabilise the banking system, preserve essential services, and enforce accountability in troubled institutions.
