Banking Arbitration in Bangladesh 2026: Loan Disputes, Artha Rin Limits and Foreign Facilities

Banking arbitration Bangladesh: where the line falls in 2026

Banking arbitration Bangladesh lenders and borrowers can rely on starts with one uncomfortable fact: the Artha Rin Adalat Ain 2003 gives the money loan courts exclusive jurisdiction over every loan recovery suit a financial institution brings, and it overrides other laws. Arbitration still has a real place in banking and finance. It decides trade finance and interbank disputes, many finance company and investment disputes, offshore syndicated and bilateral facilities, and, increasingly, settlement-led recovery that Bangladesh Bank now actively promotes. The skill lies in knowing which dispute sits on which side of the line, and drafting for it before the money goes out.

This guide is written for banks, finance companies, foreign lenders, borrowers and investors. It explains the arbitrability of bank and loan disputes against Artha Rin exclusivity, the 2025 High Court Division decision that allowed a borrower to arbitrate against a leasing company, finance company and investment disputes, arbitration clauses in syndicated and foreign loans under LMA, LSTA and P.R.I.M.E. Finance practice, BIAC for banking cases, Bangladesh Bank's ADR and complaint channels, and the enforcement and set-aside stage. Where TRW already has a detailed guide on a sub-topic, we link to it rather than repeat it.

Summary: A bank or finance company suing in Bangladesh to recover a loan must use the Artha Rin Adalat, and an award on that recovery claim risks being set aside or refused enforcement as non-arbitrable. Disputes that are not loan recovery suits in Bangladesh, such as borrower claims under multi-party agreements, trade finance and interbank claims, investment disputes and offshore facilities seated abroad, can be arbitrated. Bangladesh Bank now pushes banks towards mediation and arbitration as recovery tools, which makes clause design and settlement authority as important as the forum itself.

Key point: Section 3(3) of the Arbitration Act 2001 preserves any other law that keeps a dispute out of arbitration, and section 3 of the Artha Rin Adalat Ain 2003 gives that Act overriding effect. A lender's recovery claim belongs in the money loan court. A borrower's claim under an arbitration clause may still go to arbitration: in April 2025 the High Court Division directed the appointment of an arbitrator against a leasing company that had already filed an Artha Rin suit.

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Banking arbitration Bangladesh: what is actually in scope in 2026

Banking and finance disputes are not one category. Who is claiming, against whom, under which document and in which country decides whether arbitration is available at all. Before choosing a forum, map the dispute onto one of six types.

Six types of banking and finance dispute

• Loan recovery by a lender in Bangladesh: a bank or finance company suing a borrower, guarantor or mortgagor for money lent. This is the core of the Artha Rin Adalat's exclusive jurisdiction.
• Borrower and counterparty claims: claims against a lender for failure to disburse, wrongful acceleration or breach of a tripartite or development agreement.
• Trade finance and interbank disputes: letters of credit, reimbursements, guarantees and correspondent banking between banks, often across borders.
• Finance company and investment disputes: leasing, fund management, shareholder and joint venture disputes involving financial institutions.
• Offshore facilities: foreign-currency loans from overseas banks, development finance institutions or parent companies, usually governed by English or New York law.
• Customer and regulatory disputes: depositor complaints, wrongful debits and challenges to Bangladesh Bank action, which run through the complaint system, the civil courts or writ petitions.

Only the first type is squarely caught by the Artha Rin regime. The last type is rarely suited to arbitration at all. Everything between them is where banking arbitration Bangladesh practice is built, and where most drafting mistakes are made. Our guide to banking litigation in Bangladesh covers the court tracks in detail.

Why the scale of bad loans matters

The pressure behind every policy change is the stock of distressed debt. Classified loans stood at Tk 588,700 crore at the end of March 2026, or 32.26 per cent of outstanding loans, and loans protected by court stay orders reached Tk 182,419 crore at the end of 2025.[9] With figures of that size, banks, regulators and borrowers all have reasons to look for faster forums than a contested trial and a separate execution case.

Banking arbitration Bangladesh and the Artha Rin Adalat Ain 2003: arbitrability of loan disputes

The question every lender asks is simple: if a loan agreement contains an arbitration clause, can the bank arbitrate instead of suing in the Artha Rin Adalat? For a recovery claim filed in Bangladesh, the safe answer is no, and that answer defines the outer limit of banking arbitration Bangladesh law allows. The reasons lie in how the two statutes fit together.

The Artha Rin Adalat Ain overrides other laws

Section 3 of the Artha Rin Adalat Ain 2003 gives its provisions effect notwithstanding anything in any other law for the time being in force. Section 5(1) then requires every suit by a financial institution for recovery of a loan to be filed in, and decided by, the Artha Rin Adalat, and section 5(2) brings mortgage suits for sale or foreclosure into the same court. Section 20 bars any other court or authority from questioning an Artha Rin proceeding, order or decree except as the Act allows.[2]

The definitions are wide. "Financial institution" includes Bangladesh Bank, state-owned and private bank companies, specialised banks, financial institutions licensed under the 1993 financial institutions statute and international lenders such as the IFC, ADB, IDB and IBRD. "Loan" covers advances, overdrafts, cash credit, discounted bills, Shariah-based investment, guarantees, indemnities and letters of credit, together with lawful interest, penal interest, profit or rent.[2] Islamic-mode facilities and guarantee pay-outs are therefore inside the same regime; our guide to Islamic finance in Bangladesh explains the products.

The Arbitration Act 2001 yields to that exclusivity

The Arbitration Act 2001 does not try to override special forums. Section 3(3) provides that where another law in force does not allow a dispute to be referred to arbitration, nothing in the Arbitration Act affects that law.[1] Commentators on Bangladeshi arbitration law list banking loan-related disputes among the categories treated as non-arbitrable, alongside insolvency, tax, competition, consumer and securities matters.[4]

The consequence bites at the end of the process. An award may be set aside under section 43(1)(b)(i), and a foreign award refused recognition or enforcement under section 46(1)(b)(i), if its subject matter is not capable of settlement by arbitration under Bangladeshi law.[4] A lender that arbitrates a domestic recovery claim may win an award it cannot use, after spending the time it was trying to save.

CEFAD Foundation v International Leasing: the borrower's side

Exclusivity is not the whole story. In CEFAD Foundation v International Leasing and Financial Services Ltd, Civil Revision No. 1850 of 2023, decided on 29 April 2025, a borrower-purchaser under a tripartite agreement with a leasing company and a developer applied under section 12 of the Arbitration Act for the appointment of an arbitrator. The lender had already filed an Artha Rin suit for about Tk 35.86 crore and argued that the 2003 Act barred arbitration. The District Judge agreed and dismissed the application.[3]

The High Court Division made the rule absolute and directed the District Judge, Dhaka, to appoint an arbitrator within 30 days. It held that a section 12 application concerns only the appointment of an arbitrator, that the lender's alleged failure to disburse part of the loan was a financial dispute that could be resolved by an arbitral tribunal under the agreement's clause, and that reliance on the pending Artha Rin suit introduced extraneous facts.[3] The court did not analyse section 3 of the Artha Rin Adalat Ain in detail or decide whether a tribunal could adjudicate the recovery claim itself.

How to read the two lines together

The practical rule that emerges is asymmetric. A recovery claim by a financial institution goes to the Artha Rin Adalat, whatever the contract says. A claim by the borrower or another counterparty under an arbitration clause, for example for non-disbursement or breach of a project or development agreement, can proceed to arbitration, and the existence of a pending Artha Rin suit does not by itself defeat an appointment application. Parallel proceedings are then a real risk, and the order in which the tribunal and the money loan court decide overlapping issues can determine the outcome.

Two further points matter. First, section 5(7) disapplies the exclusive jurisdiction rule for loans that the IFC, CDC, IDB, ADB, IBRD or IDA made to the Government.[2] Second, exclusivity governs suits filed in Bangladesh. An offshore lender arbitrating abroad under a foreign-law facility is not filing a recovery suit, but it will meet the arbitrability objection when it enforces in Bangladesh, which is why seat, governing law and the lender's status as a "financial institution" all need early analysis.

Section 7 and section 10: how courts deal with arbitration clauses in finance documents

Where a dispute is arbitrable, the Arbitration Act protects the clause strongly. Section 7 provides that where a party to an arbitration agreement brings legal proceedings on a matter the parties agreed to arbitrate, the court has no jurisdiction to hear them except as the Act provides, notwithstanding any other law.[1]

Section 10 supplies the mechanism. A party to a suit on an arbitrable matter may apply for referral to arbitration, but only before filing its written statement. If the court finds a valid agreement that is not void, inoperative or incapable of being performed, it must refer the matter and stay the suit. Arbitration may begin, continue and produce an award while the application is pending.[1]

For a bank defending a customer suit, or a borrower facing a counterclaim that falls outside the Artha Rin regime, the lesson is procedural: raise the arbitration clause first, before any written statement, or risk losing it. Section 3(4) also confirms that the Act applies to arbitrations commenced in Bangladesh under agreements made before or after it came into force.[1] Our guide to the arbitration clause in Bangladesh covers drafting and validity.

Finance company, NBFI and investment disputes

Finance companies, still widely called NBFIs, sit in a distinct position. They are financial institutions for Artha Rin purposes, so their loan and lease recovery suits go to the money loan courts. CEFAD Foundation is a reminder that the same companies also sign tripartite, development and investment agreements that carry arbitration clauses, and that counterparties can enforce them.[3]

Distress, liquidation and creditor claims

The sector's condition makes these disputes more frequent. On 30 November 2025 the Bangladesh Bank board approved moves to liquidate nine troubled finance companies under the Bank Resolution Ordinance 2025, including International Leasing and Financial Services, Peoples Leasing, FAS Finance, BIFC and Premier Leasing, while pursuing licence revocations under the Finance Company Act 2023. Twenty of the 35 finance companies then operating were designated distressed.[14]

Once an institution enters resolution or liquidation, insolvency rules govern the ranking and payment of claims, and insolvency matters are generally treated as non-arbitrable.[4] A counterparty with an arbitration clause should therefore move early, preserve its claim within the resolution process and take advice before commencing or continuing an arbitration against a finance company under resolution.

Investment, fund and shareholder disputes

Disputes between investors and financial institutions about joint ventures, shareholder agreements, fund management mandates and share purchase terms are ordinary commercial disputes and are generally arbitrable. The exception is the regulated securities space: disputes about securities transactions are commonly listed as non-arbitrable, so claims tied to listed instruments or capital market regulation need separate analysis.[4] For licensing and regulatory context, see our guide to the NBFI licence in Bangladesh.

Bangladesh Bank dispute channels and the ADR push

Bangladesh Bank is not an arbitral body, but it now shapes how banks use arbitration and mediation. Three channels matter: the recovery-focused ADR directions, the 2026 mediator framework and the customer complaint system.

BRPD Circular No. 11 of 2024: a 1 per cent ADR target

BRPD Circular No. 11, issued on 12 May 2024, advised banks to use ADR, with BIAC's assistance, to recover non-performing loans.[6] Banks were directed to recover at least 1 per cent of their non-performing loans through ADR by 30 June 2026. Mediation requires the consent of both bank and customer, with experienced mediators such as BIAC-registered mediators, retired judges, retired bankers or lawyers; if mediation fails, the parties may proceed to arbitration; and banks may sign memoranda of understanding with BIAC and other arbitration centres.[7]

The circular does not remove the Artha Rin Adalat's jurisdiction. It works through consent, and through the Act's existing permission for parties to settle before judgment. In practice it gives a bank's board and management regulatory cover for agreeing to mediation and, where the borrower agrees after a dispute has arisen, arbitration of the commercial terms of a workout.

The 2026 mediating institutions framework

In August 2026 Bangladesh Bank issued guidelines on the appointment and operation of mediating institutions under ADR, sent to all banks and finance companies. Listed firms will receive data on unrecovered loans, contact borrowers and work toward compromises, earning a commission based on recoveries, under Bangladesh Bank supervision and with power to suspend or delist for misconduct.[8]

Reported eligibility rules require registration as a society, partnership or company, at least three years' experience, a trade licence and TIN, and at least one panel of five mediators including an accountant and a legal expert, each with at least ten years' relevant experience. Politically exposed persons, defaulters and people convicted of fraud, corruption, embezzlement or money laundering are excluded.[9] Borrowers approached by these firms should treat any settlement as a binding restructuring and have it reviewed against the loan documents and the classification rules.

Customer complaints: the CIPC route

Customer grievances follow a different path: first the branch, then the institution's complaint cell, then Bangladesh Bank's Customer Interest Protection Centre by hotline 16236, email, the online form or post. The CIPC will not entertain matters pending before a court, anonymous complaints or complaints against institutions outside its purview.[10] Bangladesh has no binding banking ombudsman; our banking litigation guide explains when a complaint should give way to a suit.

Mediation inside the money loan court

Even where arbitration is unavailable, settlement is built into the Artha Rin process. Under section 22, after the written statement the court refers the case to the parties' lawyers, who may appoint a mediator; the mediation must finish within 60 days, extendable by 30, is confidential, and an order on a settlement is final with no appeal or revision. A successful plaintiff recovers the court fee. Section 23 allows the parties to choose ADR at any stage before judgment with the court's permission.[2]

Bank representatives have reported that defaulters use the section 22 timetable to delay proceedings and that some Artha Rin cases have been pending for more than ten years.[6] The fix is preparation: settlement authority approved in advance, a costed offer and a mediator with banking experience. Our guide to the Artha Rin Adalat covers deposits, execution and appeals, and our guide to court-annexed mediation covers the wider framework.

BIAC as a banking arbitration Bangladesh forum

The Bangladesh International Arbitration Centre is the natural domestic home for banking arbitration Bangladesh lenders and borrowers agree after a dispute arises. Parties can use its Arbitration Rules 2019 and Mediation Rules 2019, and BIAC maintains a panel of arbitrators that includes former chief justices, senior advocates and jurists.[6]

What BIAC offers banks

At a March 2025 roundtable on BRPD Circular No. 11, BIAC described a resolution timeframe of three months to 388 days under its rules and invited banks to submit an initial ten cases for mediation as a pilot. A practitioner contrasted arbitrator appointment through the courts under the Arbitration Act, which can take six months to a year, with BIAC appointment in about three days.[6] For banking arbitration Bangladesh parties actually want to finish quickly, institutional appointment avoids the delay of a section 12 application of the kind in CEFAD Foundation.

Where BIAC fits best

• Workouts and restructurings where the borrower agrees after default to mediate, then arbitrate any residual dispute.
• Interbank, guarantee and trade finance disputes between Bangladeshi institutions that want a confidential, specialist forum.
• Finance company counterparty disputes under development, tripartite or investment agreements.
• Local-currency syndicated facilities where the lenders want a single forum for disputes among themselves and with the agent.

Our detailed guide to BIAC arbitration covers filing, fees, tribunal formation and the fast-track procedure.

Arbitration clauses in syndicated and foreign loans

For foreign-currency borrowing, the dispute clause is chosen offshore and tested in Bangladesh. The loan approval process, all-in cost limits and repayment rules are covered in our guide to foreign loan approval in Bangladesh; this section deals only with the forum.

LMA and LSTA defaults, and why lenders switch to arbitration

Loan Market Association forms default to the English courts, and the LMA has added an option for LCIA arbitration in some of its standard facility agreements.[12] Lenders to emerging-market borrowers often take that option because a borrower may refuse to litigate in London or New York, because institutions are wary of enforcing court judgments outside Europe, and because arbitral awards are expected to be easier to enforce where the assets are.[12]

That logic applies with particular force here. Bangladesh acceded to the New York Convention on 6 May 1992, with effect from 4 August 1992 and without reservations.[13] A foreign court judgment, by contrast, can be executed directly only in narrow cases, and most must be sued upon afresh in Bangladesh, as our guide to enforcing foreign law and judgments in Bangladesh explains. In banking arbitration Bangladesh enforcement is the decisive factor, and it favours an award.

New York-law loans and ICDR arbitration

Facilities on LSTA-style documentation are usually governed by New York law with New York courts. Where the borrower is in Bangladesh, lenders frequently replace the court clause with arbitration under the rules of the International Centre for Dispute Resolution, the international arm of the American Arbitration Association, or the ICC or SIAC; ISDA's model clauses for derivatives anticipate the same institutions.[12] A typical ICDR case involving a Bangladeshi borrower is a claim for accelerated principal, default interest and break costs under a New York-law loan, with a parallel claim against a local guarantor.

The structure works if four things are aligned: a foreign seat, a clear choice of New York law, a waiver of objection to the seat and a guarantor who signs the same arbitration agreement. The Bangladeshi enforcement court will look at arbitrability under Bangladeshi law, so a pure money claim for repayment under a foreign-law facility seated abroad should be framed as a contractual debt claim rather than an attempt to foreclose on Bangladeshi security.

P.R.I.M.E. Finance for specialist disputes

P.R.I.M.E. Finance, founded in 2012 and based in The Hague, offers arbitration rules for financial disputes. Its 2022 rules, in force from 1 January 2022, are based on the UNCITRAL Rules and administered by the Permanent Court of Arbitration, with a panel of almost 300 experts including central bankers, regulators, judges and market participants. The rules provide for an emergency arbitrator and an expedited procedure that applies automatically to disputes of EUR 4 million or less, with the award due within 180 days of the tribunal's constitution.[11] In January 2013 P.R.I.M.E. Finance also unveiled draft model arbitration clauses for the ISDA Master Agreements.[12]

For a Bangladeshi borrower, a P.R.I.M.E. Finance clause means a tribunal that understands market practice in derivatives, hedging and complex syndicated structures. It is a good fit for hedging disputes linked to foreign loans and for multi-lender disputes. For ordinary bilateral term loans, LCIA, SIAC or ICC remain more familiar to Bangladeshi courts.

Asymmetric option clauses

Many facility agreements give only the lenders an option to choose between arbitration and the courts. Such unilateral clauses have been held unenforceable under Russian and French law.[12] We are not aware of a reported Bangladeshi decision on the point, so a lender relying on an option clause against a Bangladeshi borrower should assume a challenge and make sure the arbitration limb works as a stand-alone agreement.

Local syndicated loans

Syndicated facilities arranged by Bangladeshi banks are usually governed by Bangladeshi law, and recovery from the borrower goes through the Artha Rin system. Arbitration can still govern disputes among the lenders, with the agent or with the security trustee, which are not recovery suits against a borrower. Our guide to the term loan agreement in Bangladesh explains syndication structures and the agent's role.

Drafting a bank-ready arbitration clause

A clause built for banking arbitration Bangladesh courts will respect does more than name an institution. It anticipates arbitrability objections, parallel Artha Rin proceedings and enforcement against local assets.

• Carve out what must go to court: state expressly that recovery suits within the Artha Rin Adalat Ain remain in that court, so the clause is not attacked as an attempt to oust it.
• Define the arbitrable disputes: disbursement, pricing, representations, project obligations, intercreditor and agency matters.
• Fix the seat deliberately: a Bangladeshi seat gives access to section 7A interim relief; a foreign seat improves neutrality but limits local court support.
• Bind every obligor: guarantors, mortgagors and security providers should sign the same arbitration agreement.
• Add a mediation window: a short, time-limited mediation step aligns the clause with Bangladesh Bank's ADR policy.
• Plan for multi-party disputes: choose rules with joinder and consolidation for syndicated deals.

The table below compares the main forums. On a phone, scroll it sideways.

Interim relief, guarantees and security

Lenders usually want security over assets before they want an award. A Bangladeshi seat allows the parties to ask the court for interim measures under section 7A. A foreign seat does not. In Legend World Tank Pte Ltd v Multinational Shipping Co Ltd, decided on 12 July 2026, the High Court Division held a section 7A application in support of a Singapore-seated SIAC arbitration not maintainable, because it remains bound by the Larger Bench decision in Accom Travels and Tours v Oman Air SAOC (2021), though the judge expressed disagreement with its reasoning.[5]

For an offshore lender, that means local protection must come from the security package rather than the courts: mortgages, hypothecation, assignments of receivables, standby letters of credit and bank guarantees. Disputes about calling guarantees are covered in our guide to bank guarantee encashment in Bangladesh.

Enforcement and set-aside in banking arbitration Bangladesh cases

A banking award is only as good as its enforcement in Bangladesh, where the borrower's assets usually are. The rules are the same as for any commercial award, but arbitrability is the ground most likely to be raised in a finance case.

Domestic and Bangladesh-seated awards

An application to set aside must be made within 60 days from receipt of the award: to the District Judge for a domestic award, and to the High Court Division for an international commercial arbitration seated in Bangladesh. The grounds include incapacity, an invalid arbitration agreement, lack of notice, excess of jurisdiction, non-arbitrable subject matter and conflict with public policy, including fraud or corruption. Once the window closes or a challenge fails, the award is enforced under the Code of Civil Procedure as a decree.[4] Our guides to setting aside an arbitral award and enforcement of arbitral awards cover each step.

Foreign awards in favour of offshore lenders

A foreign award is executed through the District Judge's court exercising jurisdiction in Dhaka.[4] It cannot be set aside in Bangladesh; the borrower can only resist enforcement on the section 46 grounds. Expect a borrower to argue that the subject matter is a loan recovery that Bangladeshi law reserves to the Artha Rin Adalat, and prepare the answer: the claim is a contractual debt under a foreign-law facility, the creditor is outside the Artha Rin definition or the claim falls outside section 5, and the award does not purport to foreclose local security. See our guide to foreign arbitral award enforcement for procedure, documents and timing.

Award creditors: think about security early

Award creditors should trace assets before the award is issued, identify bank accounts and receivables that can be attached, and check whether local lenders hold prior charges over the same property. Where the debtor's assets are already mortgaged to a Bangladeshi bank, that bank's Artha Rin decree and auction rights will usually rank ahead of an unsecured award creditor.

Step-by-step: running a banking dispute to the right forum

The sequence below reflects how TRW approaches banking arbitration Bangladesh matters for lenders, borrowers and investors when a dispute first appears.

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Throughout, keep settlement communications without prejudice, record every limitation and challenge date, and do not file a written statement in a court case before deciding whether to invoke an arbitration clause.

Borrower and lender strategy

For banks and finance companies

Treat the Artha Rin Adalat as the recovery forum and arbitration as a tool for everything around it: workouts, intercreditor issues, counterparty claims and offshore participations. Delegate settlement authority before mediation, and record ADR outcomes so they count toward Bangladesh Bank's targets. When a borrower invokes an arbitration clause, do not assume the pending Artha Rin suit defeats it; CEFAD Foundation shows that it may not.[3] Our guide to defending a bank suit shows the case from the other side.

For borrowers and guarantors

Read the facility for an arbitration clause before the bank sues. Claims for non-disbursement, wrongful acceleration or breach of a development or project agreement may be arbitrable even though the bank's recovery claim is not. A well-timed arbitration can bring the lender to the table, but it does not stop the Artha Rin case, so it must be paired with a credible defence and, where realistic, a restructuring proposal.

For foreign lenders and investors

For banking arbitration Bangladesh borrowers will contest, choose a New York Convention seat, bind every local obligor to the clause, and build the security package on the assumption that Bangladeshi courts will not grant interim relief in support of a foreign-seated arbitration. Plan for an arbitrability objection at enforcement from the day the facility is signed. Our banking and finance litigation practice and international arbitration practice act on both sides of these disputes.

What to watch in 2026 and beyond

Four developments will shape banking arbitration Bangladesh practice over the next year. First, the August 2026 mediating institutions framework will show whether panel-based mediation can deliver recoveries at scale.[8] Second, the 1 per cent ADR target fell due on 30 June 2026, and further Bangladesh Bank direction on ADR is likely.[7] Third, the resolution and liquidation of distressed finance companies will generate creditor claims that test the boundary between insolvency and arbitration.[14] Fourth, targeted amendments to the Artha Rin Adalat Ain and reform of the Arbitration Act 2001 remain under discussion, and the Commercial Courts Act 2026 now gives non-recovery banking disputes a specialised court alternative, as our banking litigation guide explains.

Facility agreements signed today should be drafted for that environment: a clear carve-out for Artha Rin recovery, a working arbitration clause for everything else, and a mediation step that fits regulatory policy. If you need a view on a clause, a dispute or an award, contact TRW.

Frequently asked questions

Can a bank in Bangladesh arbitrate a loan recovery claim instead of suing in the Artha Rin Adalat?

Not safely. Section 5 of the Artha Rin Adalat Ain 2003 requires every loan recovery suit by a financial institution to be filed in the Artha Rin Adalat, section 3 gives the Act overriding effect, and section 3(3) of the Arbitration Act 2001 preserves that exclusivity.[1] [2]

Are banking disputes arbitrable in Bangladesh at all?

Yes, many are. Trade finance, interbank, investment, intercreditor and borrower-side claims are generally arbitrable. Loan recovery suits by financial institutions are the main exception.[4]

Can a borrower start arbitration against a lender that has already filed an Artha Rin suit?

Potentially. In April 2025 the High Court Division directed the appointment of an arbitrator on a borrower's application against a leasing company, holding that the pending Artha Rin suit was irrelevant at the appointment stage.[3]

What did Bangladesh Bank require of banks on ADR?

BRPD Circular No. 11 of 12 May 2024 directed banks to recover at least 1 per cent of non-performing loans through ADR by 30 June 2026, with mediation by consent, arbitration if mediation fails and MoUs with BIAC permitted.[6] [7]

What are Bangladesh Bank's 2026 mediating institutions?

Firms enlisted under August 2026 guidelines to mediate defaulted loans for banks and finance companies, with panels of at least five experienced mediators, a commission on recoveries and Bangladesh Bank supervision.[8] [9]

Should a foreign loan to a Bangladeshi borrower use arbitration or English courts?

Usually arbitration. Bangladesh is party to the New York Convention, while most foreign court judgments must be sued upon afresh. The LMA offers an LCIA arbitration option for this reason.[12] [13]

What is P.R.I.M.E. Finance arbitration?

A Hague-based specialist forum for financial disputes. Its 2022 rules are administered by the Permanent Court of Arbitration and draw on a panel of almost 300 finance experts.[11]

Can a Bangladeshi court grant interim relief for a foreign-seated loan arbitration?

Not at present. In July 2026 the High Court Division held a section 7A application in support of a Singapore-seated arbitration not maintainable, following the Larger Bench decision in Accom.[5]

How is a foreign award in favour of a lender enforced in Bangladesh?

Through the District Judge's court in Dhaka, as a decree. The borrower may resist only on the section 46 grounds, which include non-arbitrability under Bangladeshi law.[4]

Is there a banking ombudsman in Bangladesh?

No. Customers escalate from the branch to the institution's complaint cell and then to Bangladesh Bank's Customer Interest Protection Centre, which will not take matters already before a court.[10]