Bangladesh Bank is set to liquidate five non-banking financial institutions (NBFIs), following a board decision on Tuesday, officials said.
The formal liquidation process is expected to begin at the beginning of FY27, subject to final policy approval.
However, central bank spokesperson Aref Hossain Khan said the framework is still under development.
“The terms and conditions of the liquidation have not yet been finalised. A final decision is still pending,” he told TIMES of Bangladesh.
Before liquidating the firms, the central bank will introduce a resolution scheme similar to last year’s bank resolution framework.
The scheme will outline deposit repayment priorities, funding sources, and disbursement mechanisms, with emphasis on protecting small depositors.
“The NBFI scheme is being prepared to determine how payments will be made to small depositors, the source of funds, and the mechanisms through which the payments will be disbursed,” a central bank official said.
He added that larger depositors would be addressed later, based on assessment and available resources.
Under the proposed plan, only principal deposits will be covered, excluding interest payments.
The institutions identified for liquidation are FAS Finance, Fareast Finance, Aviva Finance, People’s Leasing, and International Leasing.
Earlier, the central bank had also considered liquidating Premier Leasing. However, officials present at the meeting confirmed that the company had sought an extension.
This does not put Premier Leasing and other distressed NBFi’s out of the dissolution lists.
A second-phase review is expected after the completion of the first round of liquidations to determine the status of remaining institutions.
Zaffrullah Khan, spokesperson of the Alliance for Six NBFI Depositors’ Recovery Committee, said, “Bangladesh Bank’s decision has eased concerns, and we are grateful for their quick action.
“However, no announcement has been made yet. A clear timeline would allow the central bank to proceed and fully reassure depositors,” he told TIMES.
Regarding Premier Leasing, he said, “We are still representing depositors of six NBFIs who were set up for liquidation. Since public deposits of Premier Leasing are relatively low, they may avoid dissolution by paying the public deposits.”
“We welcome Bangladesh Bank’s policy decision, but we are seeking a formal written announcement,” he added.
