BRD Circular No. 02: Formulation of Temporary Administration Regulations, 2026 Under Bank Resolution Act, 2026

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Bangladesh Bank (Central Bank of Bangladesh) Head Office Motijheel, Dhaka-1000 Bangladesh.

Bank Resolution Department

BRD Circular No.-02

Date: 22 Srabon, 1433 06 August 2026

Managing Director/CEO/Chief Executive Officer All Scheduled Banks and Finance Companies operating in Bangladesh.

Dear Sir,

Regarding the formulation of the “Regulations for Temporary Administration under the Bank Resolution Act, 2026”.

To ensure the effective and orderly implementation of resolution activities for various scheduled banks and finance companies, the Board of Directors of Bangladesh Bank, under the authority granted by the Bank Resolution Act, 2026, has approved the “Regulations for Temporary Administration under the Bank Resolution Act, 2026”. These regulations are enclosed herewith for your information.

1. These regulations shall come into force immediately.

Enclosed herewith:

Yours faithfully,

(Signature) (Dr. Syed Nazrul Islam) Director (BRD) Phone: 55665001-6/22289

Phone: 88-02-9550448, 9554898, IP: 88-02-55665001-6, Fax: 88-02-9530479, Web: www.bb.org.bd

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Regulations for Temporary Administration under the Bank Resolution Act, 2026

Bangladesh Bank has formulated the following regulations under the authority granted by Section 73 of the Bank Resolution Act, 2026 and for the purpose of fulfilling the objectives of Section 19(3) of the Bank Resolution Act, 2. 2026, regarding the appointment of an Administrator and his/her associate(s) in any scheduled bank or finance company under internal restructuring or resolution:

1. Short Title—These regulations shall be known as the “Regulations for Temporary Administration under the Bank Resolution Act, 2026”.

2. Application and Enforcement—(1) These regulations shall apply to any scheduled bank or finance company under internal restructuring or resolution.

(2) These regulations shall come into force immediately.

3. Qualifications of Administrator—(1) For the appointment of an Administrator in a scheduled bank, the disqualifications prescribed for directors of scheduled banks or finance companies under Section 15(6) and (12) of the Companies Act, 1991 shall apply. For finance companies, the disqualifications prescribed for directors under Section 15 of the Finance Company Act, 2023 shall apply.

(2) No person shall be eligible for appointment as Administrator if:

(a) Such person is considered unsuitable under Section 15(15) and (12) of the Companies Act, 1991; and

(b) Such person or any member of his/her family is a creditor, debtor, shareholder, or other interested person of the relevant scheduled bank or finance company under internal restructuring or resolution, or has a conflict of interest with the scheduled bank or finance company.

Explanation 1—For the purpose of sub-section (2)(b) of Section 3, “family” means the wife, husband, father, mother, son, daughter, brother, sister, and any person dependent on such person.

Explanation 2—For the purpose of sub-section (2)(b) of Section 3, “interested person” means persons mentioned in Section 3(32) of the Bank Resolution Act, 2026, and persons who:

(a) Have ownership of assets that create a competitive conflict with the overall assets of the bank or finance company; and

(b) Have other interests that may hinder the Administrator from performing duties impartially within the scope of temporary administration of the scheduled bank or finance company.

(3) If a person appointed as Administrator of a scheduled bank or finance company has any direct or indirect financial or non-financial interest in the operations of the bank or finance company at the time of appointment, he/she shall inform the Bank Resolution Department, and the Bank Resolution Department shall take a decision on the appointment after considering the matter.

(4) If, after appointment as Administrator of a scheduled bank or finance company, the Administrator acquires any direct or indirect financial or non-financial interest in the operations of the bank or finance company, he/she shall inform the Bank Resolution Department within 24 hours, and the Bank Resolution Department shall take appropriate decision.

(5) In the situations mentioned in sub-sections (3) and 24 hours, the decision of the Bank Resolution Department shall be final.

(6) The provisions of sub-sections (2)(b), (3), (4) and (5) of Section 3 shall also apply to the associate(s) of the Administrator.

Explanation—For the purpose of 24 hours, the Bank Resolution Department shall take appropriate decision.

(6) The provisions of sub-sections (2)(b), (3), (4) and (5) of Section 3 shall also apply to the associate(s) of the Administrator.

Explanation—For the purpose of these regulations, “associate of the Administrator” means the person(s) appointed by the Bank Resolution Department to assist the Administrator in managing the temporary administration under Section 6 of the Bank Resolution Act, 2026.

4. Appointment Procedure of Administrator—(1) The Bank Resolution Department shall appoint one or more persons from among those who meet the eligibility criteria mentioned in Section 3 for the purpose of appointing an Administrator and/or his/her associate(s) in a scheduled bank or finance company under internal restructuring or resolution under Section 19 of the Bank Resolution Act, 2026.

(2) If the appointed person(s) are employees/staff of Bangladesh Bank, the Human Resources Department of Bangladesh Bank shall appoint the person(s) as Administrator and/or his/her associate(s) in the relevant bank or finance company upon request from the Bank Resolution Department.

(3) If the appointed person(s) are not employees/staff of Bangladesh Bank, the Bank Resolution Department shall, where necessary, make the necessary communication with the relevant institution of the appointed person(s) and appoint him/her/them 24 hours, the Bank Resolution Department shall appoint him/her/them.

(4) The appointed Administrator and/or his/her associate(s) shall perform the duties entrusted to them under the supervision and control of the Bank Resolution Department, and in case of leave, performance evaluation or other related activities, the Bank Resolution Department shall coordinate.

(5) The remuneration of the Administrator and/or his/her associate(s) shall be determined by Bangladesh Bank.

(6) The expenses of temporary administration, including the remuneration of the Administrator and/or his/her associate(s), shall be borne by the scheduled bank or finance company under temporary administration in accordance with the conditions determined by Bangladesh Bank.

(7) If an Administrator and/or his/her associate(s) is considered unsuitable for the duties entrusted to him/her/them under the supervision and control of the Bank Resolution Department, the Bank Resolution Department shall appoint another person(s) as Administrator and/or his/her associate(s).

(8) Bangladesh Bank shall publish a notice in at least one Bengali and one English national daily newspaper on the website of Bangladesh Bank and the relevant bank or finance company within the next working day after the appointment of an Administrator in a scheduled bank or finance company.

5. Term of Administrator—(1) The term of the Administrator appointed in a scheduled bank or finance company shall be the term mentioned in Section 19(2) of the Bank Resolution Act, 2026.

(2) If there is a need to extend the term of an Administrator or his/her temporary administration, the Bank Resolution Department may extend such term and publish it by notification.

6. Powers of Administrator—The Administrator appointed under temporary administration may replace the senior management personnel of the scheduled bank or finance company under temporary administration, as necessary, to maintain critical functions of the scheduled bank or finance company under temporary administration, in consultation with the Bank Resolution Department under Section 19 of the Bank Resolution Act, 2026.

7. Functions of Administrator—(1) The Administrator appointed in a scheduled bank or finance company under internal restructuring shall perform the following functions:

(a) Determine the true financial position of the bank or finance company under temporary administration by appointing an independent auditor;

(b) Submit the audited financial statements along with the report to the Bank Resolution Department within a maximum of 3 (three) months from the date of appointment of the Administrator or within the time determined by the 24 hours, the Bank Resolution Department shall submit the report to the Bank Resolution Department within a maximum of 3 (three) months from the date of appointment of the Administrator or within the time determined by the Bank Resolution Department;

(c) Submit a plan to the Bank Resolution Department within a maximum of 1 (one) month from the date of submission of the report under clause (b) of sub-section (1) of Section 7;

(d) Implement the plan submitted to the Bank Resolution Department within a maximum of 1 (one) month from the date of submission of the report under 24 hours, the Bank Resolution Department shall submit the report to the Bank Resolution Department within a maximum of 3 (three) months from the date of appointment of the Administrator or within the time determined by the Bank Resolution Department;

(e) Take steps to restore fair and prudent management of the bank or finance company;

(f) Properly preserve and manage all information and documents of the bank or finance company and maintain confidentiality;

(g) Maintain a register of all decisions and actions taken on the bank or finance company during the term of temporary administration;

(h) Comply with other conditions of appointment as Administrator;

(i) Submit quarterly progress reports to the Bank Resolution Department;

(j) Transfer all assets and liabilities of the bank to the new board of directors and management of the bank in an appropriate manner, where applicable;

(k) Submit a final report on the activities of the temporary administration to the Bank Resolution Department within a maximum of 3 (three) months from the date of completion of the activities of the temporary administration under Section 24 of the Bank Resolution Act, 2026.

(2) The Administrator appointed in a scheduled bank or finance company under the resolution process shall perform the following functions:

(a) Prepare a list of assets and liabilities of the bank or finance company under temporary administration in accordance with Section 21 of the Bank Resolution Act, 2026 and submit it to the Bank Resolution Department within a maximum of 2 (two) months from the date of appointment of the Administrator or within the time determined by the Bank Resolution Department;

(b) Submit a complete report along with recommendations for the best implementation of effective resolution to the Bank Resolution Department within a 24 hours, the Bank Resolution Department shall submit the report to the Bank Resolution Department within a maximum of 3 (three) months from the date of completion of the activities of the temporary administration under Section 24 of the Bank Resolution Act, 2026.

(3) The Administrator shall be liable for any failure to perform duties in accordance with Section 63 of the Bank Resolution Act, 2026.

8. Functions of Associate(s) of Administrator—(1) The associate(s) of the Administrator shall assist the Administrator in properly performing the duties entrusted to him/her/them under Section 7.

(2) The 24 hours, the Bank Resolution Department shall submit the report to the Bank Resolution Department within a maximum of 3 (three) months from the date of completion of the activities of the temporary administration under Section 24 of the Bank Resolution Act, 2026.

(3) The 24 hours, the Bank Resolution Department shall submit the report to the Bank Resolution Department within a maximum of 3 (three) months from the date of completion of the activities of the temporary administration under Section 24 of the Bank Resolution Act, 2026.

(4) The Administrator shall be liable for any failure to perform duties in accordance with Section 63 of the Bank Resolution Act, 2026.

9. Termination of Administrator—(1) The term of the Administrator appointed in a scheduled bank or finance company shall terminate in accordance with Section 23 of the Bank Resolution Act, 2026.

(2) If the activities of the Administrator and/or his/her associate(s) are terminated, he/she/they shall, where applicable, be attached to the Human Resources Department of Bangladesh Bank.

10. Appointment Procedure, Term and Termination of Associate(s) of Administrator—The provisions of Sections 4, 5 and 24 hours, the Bank Resolution Department shall submit the report to the Bank Resolution Department within a maximum of 3 (three) months from the date of completion of the activities of the temporary administration under Section 24 of the Bank Resolution Act, 2026.

11. Amendment, Addition or Deletion—(1) Any amendment, addition or deletion to these regulations may be made by the Board of Directors of Bangladesh Bank, subject to approval.

(2) Any amendment, addition or deletion to these regulations shall be issued immediately.

(3) The Bank Resolution Department may relax any provision of these regulations for the purpose of implementing resolution.

12. Repeal and Savings—(1) The “Regulations for Bank Resolution, 2025” issued through BRD Circular No.-02 dated 23 October, 2025, and “Schedule D: Administrator Appointment Form” and “Schedule E: TOR of the Temporary Administration” are hereby repealed.

(2) Notwithstanding such repeal, any work done or action taken under Schedule D and Schedule E of the repealed regulations shall be deemed to have been done or taken under these regulations.