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Finance Minister Amir Khosru Mahmud Chowdhury has stated that there will be no ‘haircut’ on the funds of any depositor in the country’s affected banks. All depositors will receive their principal amount along with interest. However, due to the financial condition of the loss-making banks, the entire process will take some time.
Responding to an urgent public interest notice in the Jatiya Sangsad on Wednesday (July 8), he said that the government has adopted integrated legal and institutional measures to restore stability in the financial sector, protect depositors’ interests, and recover money laundered from the banking sector.
The Finance Minister said, “There will be no haircut. Depositors will receive both their principal and interest—I assure you of this.” However, he urged depositors to be patient, stating that immediate repayment of all funds is not possible due to the continuous losses incurred by the affected banks.
He informed that the government has enacted the Bank Resolution Act, 2026, to restore discipline in the banking sector. Under this law, five financially weak banks—Exim Bank, First Security Islami Bank, Global Islami Bank, Social Islami Bank, and Union Bank—have been merged to form Combined Islami Bank PLC. He also stated that the interests of all depositors of the merged banks have been protected.
Furthermore, under the Deposit Protection Act, 2026, the insured deposit limit has been increased from BDT 1 lakh to BDT 2 lakh. The Finance Minister also stated that depositors of affected banks are gradually receiving their funds back through special arrangements made by Bangladesh Bank.
He mentioned that special forensic audits are underway concerning loan irregularities and financial corruption in five banks. The government has taken legal steps to recover depositors’ funds by seizing and selling the assets of those responsible, and to repatriate money laundered abroad. To this end, international law firms are also being appointed on a ‘no win, no fee’ basis.
The Finance Minister said that the government is working to restore public confidence in the banking system, and depositors will receive both their principal and interest, but this will require some time.