SANGSAD BHABAN, July 8, (v7n) – Finance Minister Amir Khosru Mahmud Chowdhury today assured parliament that depositors of troubled banks would receive their full deposits along with accrued interest, ruling out any possibility of a "haircut," while acknowledging that the process would take time due to mounting losses in the affected institutions.
Responding to a call attention notice under Rule 71 of the Rules of Procedure, placed by treasury bench lawmaker Rehana Akhter Ranu, the minister said the government has established a comprehensive legal and institutional framework to restore financial sector stability, safeguard depositor interests, and recover funds siphoned off through banking irregularities.
"There will be no haircut. Depositors will get back their money and interest. I can assure you of that," he told the House, while requesting patience. "Please have a little patience. These banks are all operating at losses, and the losses are increasing every day. When a bank cannot even return deposits, you can understand how difficult it is for that bank to pay interest."
The minister acknowledged the human toll of the crisis, saying: "I know people do not have time to wait. Some are dying because they cannot afford medical treatment. Some cannot arrange their daughters' marriages. I encounter these problems every day." He reiterated: "I can say this with certainty—depositors will get back their money. They will also get the interest. That is guaranteed."
The minister highlighted the government's legislative measures, including the Bank Resolution Act, 2026, under which five distressed banks—EXIM Bank, First Security Islami Bank, Global Islami Bank, Social Islami Bank, and Union Bank—have been merged into Sammilito Islami Bank PLC. He said all depositors' claims and interests have been fully protected in the newly formed bank.
The Deposit Protection Act, 2026, has increased the maximum insured deposit from Tk 100,000 to Tk 200,000, and depositors of financial institutions have also been brought under coverage. Depositors of banks under resolution are already receiving their money in phases through Bangladesh Bank schemes, he added.
Special forensic audits are underway to identify individuals responsible for loan irregularities and financial misconduct. Based on findings, legal steps will be taken to recover misappropriated assets. The minister noted that Bangladesh Bank has been empowered under the Bank Resolution Act to seize income, assets, and property acquired through misuse of bank funds, enabling recovery through sale or auction.
Alongside criminal proceedings, civil actions have been initiated to recover defaulted loans and assets laundered abroad. Around 30 affected banks have appointed nine international legal firms under "no win, no fee" arrangements. Civil proceedings have begun in the first phase involving six priority cases linked to S Alam Group, Saifuzzaman Chowdhury, Beximco Group, Sikder Group, Nassa Group, and Orient Group, with further expansion planned.
The minister said huge amounts of money were laundered abroad during the previous government's tenure, and the present administration has taken all possible legal and institutional measures to recover those assets and strengthen confidence in the banking system.
end/aj/rh/
