Bank Resolution Act: BB Business Guide Bangladesh
The Bank Resolution Act is currently being considered by the Bangladesh Bank. This act is aimed at addressing issues related to the resolution of failing banks and ensuring the stability of the banking sector. The goal of the proposed act is to have a clear framework in place to deal with troubled banks in a timely and efficient manner.
According to the Bangladesh Bank, the Bank Resolution Act is being developed based on international best practices and will provide a legal basis for the resolution of failing banks. This includes measures such as restructuring, reorganization, liquidation, and merger of banks in distress.
The Act is also expected to enhance depositor protection and maintain financial stability in the banking sector. It will establish a framework for early intervention and resolution of banks to prevent their failure from having a systemic impact.
The Bank Resolution Act aims to strengthen the regulatory framework for banks and improve governance and risk management practices within the banking sector. This is crucial for maintaining trust and confidence in the financial system.
The proposed act is a significant step towards enhancing the resilience of the banking sector and ensuring that banks are better equipped to handle financial distress. It demonstrates the commitment of the Bangladesh Bank to safeguarding the stability of the financial system and protecting the interests of depositors.
Overall, the Bank Resolution Act is a positive development that will help to strengthen the banking sector and protect the interests of all stakeholders. It is an important measure in ensuring the stability and soundness of the financial system in Bangladesh.
