Dhaka, May 11 -- Any scheduled bank or financial institution, including troubled Islamic banks, may go under government ownership for bringing stability in the noncompliant commercial lenders under a latest reform panacea.

In the process of streamlining, officials say, the central bank can temporarily take over control of any such bank or nonbank.

For this, the Bangladesh Bank as the regulator can issue an order transferring one or more shares and the recipient of shares must be a government-owned entity, according to provision of the bank Resolution Ordinance published in official gazette on Friday.

The ordinance had earlier received approval from the Advisory Council of the interim government on April 17.

Simultaneously, the ordinan...