Ordinance issued: Any bank, financial institution can bow be temporarily taken under state ownershipTo rehabilitate bankrupt or at-risk banks, the government and Bangladesh Bank can now temporarily bring any scheduled bank or financial institution under state ownership, according to the Bank Resolution Ordinance, 2025, published in the official gazette on Friday. The Bank Resolution Ordinance, 2025 also allows for the creation of one or more “bridge banks” to ensure uninterrupted operations. A bridge bank is a temporary institution set up by Bangladesh Bank to manage the operations of a failing or bankrupt bank. Bangladesh Bank is empowered to suspend or prohibit all business activities of a financially weak bank. The government and Bangladesh Bank may also temporarily take ownership of any bank or financial institution, including Shariah-based banks.
