7.1. Banking Sector Overview

The financial sector is regulated by the Bangladesh Bank (the Central Bank). To safeguard financial stability, the Jatiya Sangsad passed the Bank Resolution Act, 2026 (amended on August 10, 2026), establishing market-based alternative mechanisms to keep capital-deficient or insolvent banks operational while protecting depositors and reducing government liabilities. Additionally, the Bangladesh Bank (Amendment) Act, 2026 (Act No. 83 of 2026) passed on April 10, 2026, abolished the maximum age limit of 67 years for the post of Central Bank Governor, allowing the government to retain highly experienced macroeconomic experts.