Bank Resolution Department   

Name & Designation	Email	Telephone	Fax
Dr. Md. Kabir AhmedDeputy Governor	kabir.ahmed@bb.org.bd	880-2-9530022(O)	--
Mohammad Shamsuddin AhmedExecutive Director	shamsuddin.ahmed@bb.org.bd	880-2-9530409(O)	--
Mahmudun NabiDirector (BRD)	mahmudun.nabi@bb.org.bd	880-2-222251101(O)	--
Dr. Syed Nazrul IslamDirector (BRD)	syed.nazrul@bb.org.bd	-(O)	-

Overview

The Bank Resolution Department (BRD) is responsible for the restructuring, resolution, and liquidation of distressed banks and finance companies. BRD was constituted as directed in Clause 6 of the Bank Resolution Act, 2026, which also establishes the legal framework for the country's bank resolution regime, including tools such as temporary administration, purchase and assumption transactions, mergers and acquisitions, recapitalization, bail-ins, and liquidation.

Within this mandate, BRD formulates resolution policy and standardized procedures, executes resolution actions for distressed banks and finance companies, establishes and governs the Bank Restructuring and Resolution Fund (BRRF), supervises Asset Quality Review (AQR) activities, and coordinates with domestic and international stakeholders. The Department's work is aimed at protecting depositors, containing systemic risk, and preserving overall stability and public confidence in the banking sector.

Background

Amid rising non-performing loans (NPLs), tightening liquidity conditions, and governance challenges affecting public confidence in the banking system, the need for comprehensive reform of the sector became increasingly apparent after August 2024. In response, the Honorable Governor of Bangladesh Bank initiated the formation of a dedicated task force of sector specialists, formally announced on 11 September 2024, as the Banking Sector Reform Task Force (BSR-TF).

The BSR-TF was mandated to assess evolving risks within the banking sector, facilitate the restructuring and stabilization of vulnerable banks, propose essential legal and institutional reforms, and develop frameworks to strengthen governance, enhance transparency, and bolster the resilience of the financial system.

To operationalize the directives of the BSR-TF, selected officials of Bangladesh Bank were assigned to perform the task force's duties, with Deputy Governor Dr. Md. Kabir Ahmed as coordinator, as directed in Human Resources Department-1 (HRD-1) Staff Order No. HRD-1:478/2024 dated 01.10.2024.

Subsequently, to strengthen and streamline the reform efforts, this team was formally constituted as a dedicated unit titled the Bank Restructuring & Resolution Unit (BRRU), established under Administrative Circular No. 12 dated 4 March 2025.

The unit has been transformed to a permanent department of Bangladesh Bank — the Bank Resolution Department (BRD) — with effect from 17 July 2025, under HRD-1 Administrative Circular No. 26 dated the same date, as directed in Clause 6 of the Bank Resolution Act, 2026. BRD now functions as the principal executing body in support of banking sector reform and resolution in Bangladesh.

Major Functions

• Implement the Bank Resolution Act, 2026 to ensure a structured and legally sound resolution framework.
• Create standardized resolution procedures and update guidelines to streamline the resolution process of banks and finance companies, ensuring consistent and efficient practices.
• Establish contingency measures for banking and finance sector crises, identifying contagion risks and strategies to mitigate systemic impacts.
• Execute simulation exercises to formulate optimal resolution strategies, including recapitalization, asset and liability transfers, Purchase & Assumption, mergers, acquisitions, bail-ins, restructuring, or liquidation, based on banks' financial health, capital gaps, and funding requirements.
• Conduct transparent, fair, and independent reviews of resolution cases to uphold public confidence and maintain fairness.
• Recommend policy options such as recapitalization, mergers, or liquidation for managing distressed banks and finance companies effectively.
• Establish and govern the Bank Restructuring and Resolution Fund (BRRF) to support resolution activities effectively.
• Supervise Asset Quality Review (AQR) activities to assess asset quality and inform resolution strategies.
• Act as liaison with International Financial Institutions (IFIs) such as the World Bank, the Asian Development Bank (ADB), and the International Monetary Fund (IMF), integrating international best practices and mobilizing external technical expertise for resolution.
• Implement corrective measures for banks/finance companies under Prompt Corrective Action (PCA) stages 1-4, ensuring rapid intervention to stabilize financial conditions.
• Address governance and systemic risk issues within banks/finance companies, advising on reforms to improve governance and risk management frameworks.
• Oversee restructuring, resolution, and liquidation processes, ensuring alignment with established policies and guidelines.
• Build capacity and develop expertise in bank restructuring and resolution, focusing on resolution strategies, practical applications, and relevant legal frameworks.