Dhaka, May 12 -- To rehabilitate bankrupt or at-risk banks, the government and Bangladesh Bank can now temporarily bring any scheduled bank or financial institution under state ownership, according to the Bank Resolution Ordinance, 2025, published in the official gazette on Friday.

The ordinance grants the government and Bangladesh Bank sweeping authority to take actions for the recovery of banks facing insolvency or on the brink of collapse.

It allows for measures such as mergers or the appointment of administrators in the case of weak banks, in line with the ordinance's provisions.

The ordinance also mandates the formation of a separate unit to handle resolution processes for banks nearing insolvency.

If an administrator is appointe...