Tk 40,000 Crore Planned for Weak Bank Restructuring Under Major Financial Sector Reform
Published : 20:07, 11 June 2026
Finance Minister Amir Khasru Mahmud Chowdhury has announced that around Tk 40,000 crore will be spent on restructuring and recapitalizing weak banks as part of a broader effort to restore discipline in the country’s banking and financial sector.
He made the announcement while presenting the national budget for the fiscal year 2026-27 in Parliament on Thursday.
The finance minister said a risk-based supervisory framework will be introduced to strengthen oversight of banks weakened by loan scandals and financial distress. He added that recapitalization and management reforms will be undertaken where necessary to restore stability in the banking sector.
He noted that the government is already spending about Tk 40,000 crore in the current fiscal year to support and restructure vulnerable banks.
Banking Sector Reforms
According to the minister, restoring depositor confidence through transparency, accountability, and discipline in the financial sector remains a top priority.
He further stated that risk management practices, capital adequacy requirements, and corporate governance standards will be strengthened in line with international benchmarks to ensure long-term sustainability and competitiveness of financial institutions.
He also claimed that over the past two decades, capital adequacy in the banking sector has fallen into negative territory, while private sector credit growth has slowed, indicating stagnation in the financial system.
Capital Market and Inclusion
The government also plans to boost investment through capital market reforms and expand financing opportunities for women, young entrepreneurs, and marginalized communities.
The minister concluded that the government is working to shift the economy away from debt dependence toward a more investment-driven and sustainable economic structure.
