Regulatory Alerts2026-06-10
BRD Circular No. 01: Bank Resolution Act, 2026
The Bangladesh Bank issued Circular No. 01 to implement the Bank Resolution Act, 2026, establishing a comprehensive legal framework for the resolution of non-viable banks and systemically important financial institutions. The circular defines critical terms, outlines the powers of the Resolution Authority, and mandates the development of resolution plans and bail-in tools to ensure financial stability. It further details the hierarchy of claims, the treatment of eligible liabilities, and the specific powers available to the authority during the resolution process to minimize impact on the real economy.
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