The government has allocated Tk 33,240 crore to continue bank merger and restructuring activities alongside other reform efforts for the 2026-27 financial year.
The allocation has been made under the head of shares and equity investments by the government.
In the current 2025-26 financial year, the revised expenditure for this sector stands at Tk 41,558 crore.
Finance minister Amir Khosru Mahmud Chowdhury announced the figure in the parliament on Thursday while unveiling record Tk 9.38 lakh crore national budget for the 2026-27 fiscal year.
He said that more than Tk 40,000 crore has been spending in the current fiscal year FY26 to recapitalise distressed banks and restore stability to a financial sector crippled by toxic loans and mismanagement.
He categorised the stabilisation of the banking industry as a core medium-term priority to drive economic recovery and sustain private investment.
To curb systemic irregularities and rising non-performing loans, the government is introducing a risk-based supervisory framework to rebuild the financial soundness of weak banks.
State efforts will target greater transparency in loan approvals, stricter loan rescheduling guidelines, and heightened accountability in bank management.
‘To improve the effectiveness of policy implementation in the financial sector, the government will strengthen the supervisory authority of the central bank, introduce the necessary legal reforms
to eliminate political interference in banking operations, and ensure that bank governance is free from undue family influence,’ he said.
‘International standards relating to risk management, capital adequacy, and corporate governance will be adopted to enable financial institutions to become more stable, resilient, and competitive over the long term,’ he added.
The government plans to expand financial inclusion by driving credit flow to women, young entrepreneurs, and marginalised communities.
To achieve this, the central bank will strengthen targeted refinancing programmes for small and medium-sized enterprises (SMEs), agriculture, and productive industries.
Read More: New Age | Tk 33,240 crore allocated for banking reforms
