BB sets new rules for bank resolution

ByEnigma 808

Bangladesh Bank released new rules on Thursday to handle failing financial institutions under the Bank Resolution Ordinance of 2025. The regulations cover conventional and Islamic banks while ensuring compliance with religious law for Shariah-based operations. Officials designed the framework to protect depositors and maintain essential banking services when lenders face distress.

The central bank created a resolution authority with the power to reorganize troubled institutions through capital restructuring and asset transfers. Islamic banks must follow additional requirements through a special advisory panel that verifies adherence to religious principles. The regulations permit converting liabilities into equity or Islamic bonds while preserving profit-sharing arrangements. Bangladesh Bank can issue further instructions as needed to strengthen financial system stability.

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    Besides writing and being a content creator, Enigma 808 sometimes likes to watch paint dry on walls, listening to ASMR while timing snails racing. Such is life.