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The Cabinet on Monday approved in principle the draft of Bank-Company (Amendment) Bill 2021 to control default loans and ensure good governance and stability in the financial sector.
The approval came from a virtual meeting held with Prime Minister Sheikh Hasina in the chair. Hasina virtually joined the meeting from her official residence Ganobhaban, while other members took part from the Bangladesh Secretariat.
"The proposed law is required for overseeing banking business operation, controlling default loans, and ensuring good governance and stability in the financial sector," Cabinet Secretary Khandker Anwarul Islam told reporters after the meeting.
Since the number of banks, their assets, loans, deposits, leases, investment and many other things have increased, the Bank Company Act 1991 doesn't cover all, he noted.
The draft law was framed revising the related banking laws of different countries, the Cabinet Secretary said.
"The definition of the deliberate loan defaulters and actions against them are not much clear in the existing law as the Bank Company Act 1991 was framed following the then context. But the issues have precisely been mentioned in article 27 (Kha and Ga) of the proposed law," he said.
Besides, some new provisions were incorporated in the draft law focusing on various issues like good management and recovery of the weak bank companies, actions against the responsible behind the critical conditions of the vulnerable banks, and reform and merging of banks.
If any director of a bank or any other man gets engaged in irregularities, the person will have to count a huge amount as fine alongside facing criminal charges, the Cabinet Secretary said.
The Cabinet also approved in principle the draft of Special Security Force Bill, 2021 incorporating the issue of providing security to the family members of Father of the Nation Bangabandhu Sheikh Mujibur Rahman, and very important persons.
The proposed law was brought up as the existing law "the Special Security Force Ordinance, 1986" was void following a verdict of the higher court.
"The new law was drafted revising the existing one. Only one thing was included here, which is providing security to the family members of Father of the Nation Bangabandhu Sheikh Mujibur Rahman, and very important persons," said Cabinet Secretary Islam.
He said the Bangabandhu's family members means his two daughters, grandchildren, and in some cases, spouses or issues of the grandchildren.
The very important persons defined by the government through gazettes, heads of the foreign states or governments will be given security under the draft law.
In case of providing security to the Bangabandhu's family members, the Special Security Force Bill, 2021 will be given priority over whatever there is in the Father of the Nation Bangabandhu Sheikh Mujibur Rahman's Family Members Security Act, 2009.