The government has promulgated the `Bank Resolution Ordinance 2025`, published as a gazette notification on Friday, allowing the Bangladesh Bank to temporarily take over any scheduled bank or financial institution, including Islamic banks, by transferring shares to government-owned entities.

If a bank’s owner misuses assets or engages in fraud, the central bank can intervene through resolution actions, such as appointing a temporary administrator, recapitalizing, transferring assets or shares, or suspending operations.

Approved by the Advisory Council on April 17, the 67-page ordinance empowers Bangladesh Bank to take stringent measures to ensure banking sector stability.

The ordinance introduces a "bridge bank" concept for restructuring weak banks, which can later be sold. If liquidation is required, Bangladesh Bank can initiate the process through courts, with set timelines for appointing a liquidator and settling liabilities.

Individuals responsible for a bank’s failure will face personal liability for losses caused by their actions. Violations of the ordinance may incur fines up to Tk50 lakh, plus Tk5,000 daily penalties.

A seven-member `Banking Sector Crisis Management Council`, led by the Bangladesh Bank Governor, will be formed, including the Finance Secretary, Financial Institutions Division Secretary, BSEC Chairman, Legislative Secretary, and two Deputy Governors. The council will meet quarterly to develop emergency crisis plans.