BM Desk: Under the Bank Resolution Ordinance, 2025, there is currently no provision to protect the interests of general investors or shareholders of the five struggling banks set to merge.

However, the Bangladesh Bank (BB) has said that the government may consider compensating small investors and shareholders affected by the process.

At a press conference on Wednesday, Bangladesh Bank Governor Ahsan H. Mansur stated that the existing share assets of these banks have already turned negative in value. Therefore, no shares from the newly formed merged bank will be allocated to the current shareholders. Following the Governor’s remarks, frustration and unrest spread among investors.

Later, in an official statement, Bangladesh Bank clarified that the Bank Resolution Ordinance, 2025 was formulated with technical assistance and recommendations from the International Monetary Fund (IMF), the World Bank, and the UK’s Foreign, Commonwealth & Development Office (FCDO). The ordinance clearly defines the rights of depositors, shareholders, and other creditors involved in the resolution process.

The statement further noted that, after the completion of the resolution process, if an independent and professional valuer appointed by Bangladesh Bank determines that shareholders are entitled to compensation based on the valuation, such compensation may be provided.

Data analysis and special inspections have revealed, through assessments conducted by international consulting firms, that these banks have suffered massive losses, resulting in a negative net asset value (NAV).

In this context, under Section 42 of the Ordinance, the Banking Sector Crisis Management Committee (BSCMC) recently decided that shareholders will bear the losses of the five banks currently under resolution.

As a result, in line with the relevant provisions of the Bank Resolution Ordinance, 2025 and the decision of the BSCMC, there is presently no scope to protect the interests of general investors or shareholders during the merger of these five banks. However, Bangladesh Bank reaffirmed that the government may consider compensation measures for small investors and shareholders if it deems appropriate.