The Bangladesh Association of Banks (BAB) has called for the rapid identification, legal recovery, and return of embezzled or looted funds from the country’s banking sector to protect depositors’ interests. In a press release issued on Sunday, the organization welcomed the proposed national budget for fiscal year 2026–27, noting the government’s allocation of about Tk 40,000 crore for weak banks as a key step toward restoring stability.

BAB emphasized that the recapitalization effort will only be effective if accompanied by strong measures to recover stolen assets and hold those responsible accountable. It urged visible and strict actions against willful defaulters and individuals who have harmed the banking system, warning that they should not be allowed to re-enter the sector. The association also proposed establishing an asset management company to reduce non-performing loans and strengthen bank balance sheets.

BAB cautioned that recapitalization without effective recovery would bring only temporary relief. It called for equal emphasis on reform, recovery, and accountability to ensure sustainable growth and maintain public trust in the banking system.