Bank owners alarmed over return of 'known looters’ under revised law

Leaders in the banking sector on Monday expressed grave concerns that a freshly included provision in an amended law could allow former owners involved in major financial irregularities to return to the sector.

Bangladesh Association of Banks (BAB) and Dhaka Bank Chairman Abdul Hai Sarker raised the concerns with reporters after discussing the issue at a meeting with Bangladesh Bank Governor Mostaqur Rahman.

Abdul Hai Sarker said the inclusion of Section 18A in the amended Bank Resolution Act has created fears among bankers that previous owners of troubled banks may regain entry into the sector.

He added that individuals who had previously taken money from banks are widely known, and allowing them to return could further damage public trust in the financial system, creating a new problem for the crisis-hit sector.

“The government should carefully reconsider the issue,” he said.

The meeting was attended by several prominent business and banking leaders, including Manzurur Rahman, chairman of Pubali Bank; Sharif Zahir, vice chairman of BAB and chairman of United Commercial Bank; Rono Ruhul Quddus Chowdhury, chairman of Bank Asia; and AK Azad, managing director of Ha-Meem Group.

Abdul Hai Sarker said the Governor assured them that, under the strict conditions of the amended law, former owners would not actually be able to return to control banks.

Addressing journalists, Abdul Hai Sarker emphasized the need for greater stakeholder consultation before implementing major financial policy changes to ensure better acceptance and effectiveness across the banking and industrial sectors.

Meanwhile, in the meeting, the Governor also confirmed that the ongoing merger process involving five ailing banks will continue, with no possibility of reversal. According to Abdul Hai Sarker, this assurance has partially eased concerns among bankers.

Abdul Hai Sarker further noted that discussions also included the possibility of creating a separate fund to support the revival of closed factories.