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caused by governance failures, prolonged legal recovery processes, and economic uncertainty.

“A meaningful re-capitalisation of the banking sector requires robust recovery processes and strong action against those who continue to hold shares and assets within the financial system despite looting money,” said the statement.

The BAB urged swift legal recovery, the confiscation of illicitly acquired assets, and enhanced enforcement measures to restore confidence and protect depositors’ interests.

It cited the amendment in the banking resolution law and warned that any perception of allowing controversial former sponsors or major defaulters to return to the banking system could affect depositor confidence, investor sentiment, and the credibility of reforms.

To facilitate quicker management of distressed assets, the BAB recommended stronger coordination between Bangladesh Bank and the Bangladesh Securities and Exchange Commission (BSEC), alongside the establishment of fast-track financial courts and a centralised Asset