Finance Minister Amir Khosru Mahmud Chowdhury on Wednesday assured that depositors of the country's troubled five banks will receive their money back in full, along with interest, and categorically ruled out any "haircut" on deposits, reports UNB.
Responding to a notice from BNP reserved-seat MP Rahana Akter Ranu, he acknowledged the hardship faced by millions of depositors, describing the banking crisis as "a heartbreaking situation" inherited by the government.
"I have already said in Parliament that all depositors will get their deposits back with interest, Insha-Allah. However, they will have to be a little patient," the minister said.
He said the affected banks are operating at heavy losses, making it difficult to repay depositors immediately while also paying interest. "These banks are all running at a loss, and those losses are increasing every day. You have to understand how difficult it is for a loss-making bank that cannot even return deposits to also pay interest. Even so, an elected government is committed to protecting the interests of the people," he told the House.
Khosru gave an unequivocal assurance that depositors will not face any reduction in the value of their savings. "There will be no haircut. The question of a haircut does not arise," he said, responding to concerns raised by the BNP lawmaker.
He acknowledged the severe human suffering caused by the crisis, noting that many depositors are unable to pay for medical treatment or arrange family necessities because their savings remain inaccessible.
"I know people cannot afford to wait. Some are dying without treatment, while others cannot arrange their daughters' marriages. I face these problems every day," the minister said.
He, however, cautioned that resolving the crisis will require a medium- to long-term approach. "It will take some time, but I can assure you that depositors will receive their money back with interest," he added.
Khosru outlined the government's banking sector recovery strategy, saying a comprehensive resolution framework has been established under the Bank Resolution Act, 2026 to restore stability in the financial sector.
Under the framework, five troubled Islamic banks - Export Import Bank of Bangladesh (EXIM Bank), First Security Islami Bank, Global Islami Bank, Social Islami Bank and Union Bank - have been merged into a new entity named Combined Islami Bank PLC, which he described as the most significant resolution measure undertaken so far.
The minister said the merger has protected the interests and claims of all depositors of the five banks.
He also noted that the Deposit Protection Act, 2026 has doubled the insured deposit limit from Tk 100,000 to Tk 200,000 and extended deposit protection to finance companies, which were previously outside the scheme.
According to Khosru, depositors of banks under resolution are already receiving their money in phases in line with Bangladesh Bank's resolution scheme.
He said special forensic audits are underway to identify those responsible for loan irregularities in the five banks, with asset recovery measures to follow based on the audit findings.
