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Tk 40,000 crore in FY2025–26 to recapitalise weak banks and is working to reduce NPLs, increase transparency in loan approval and rescheduling, and strengthen accountability in bank management.

He said a risk-based supervisory framework would be introduced to restore weak banks, alongside recapitalisation and management reforms where necessary.

The government has also initiated bank restructuring to ensure depositors recover their funds and launched efforts to recover money laundered abroad, he said.

The minister added that political appointments and interference in banking operations have been halted and that laws have already been amended to reduce undue familial influence and control in the sector.

Economic analysts, however, said the reform agenda remains too broad and lacks timelines.

Ahsan H Mansur, economist and former Bangladesh Bank governor, told The Daily Star that while the budget correctly identifies the sector’s problems and includes some positive governance proposals, it does not set out a clear or specific reform roadmap.

Statements alone would not be enough, he said, adding that meaningful reforms must begin immediately even if their benefits take years to materialise.

Mansur also questioned the absence of several previously discussed measures, including reforms related to financial institutions, tax administration, and greater independence for Bangladesh Bank.