Regulatory Alerts2025-10-06
Added
Regulations for Bank Resolution, 2025
The Regulations establish the Bank Resolution Department (BRD) as an independent Resolution Authority with functional autonomy from Bangladesh Bank's supervisory functions. They mandate resolution planning and resolvability assessments for all scheduled banks, including Islami banks and finance companies, requiring Domestic Systemically Important Banks to undergo full-scope assessments twice yearly and others annually. The framework requires banks to establish Resolution Coordination Units, submit specific data packs, and participate in simulations every 24 months to validate their plans. It defines resolution tools, creditor hierarchies, and Shariah-compliant procedures for Islami banks, while empowering BRD to impose remedial measures or penalties for non-compliance.