Bangladesh Bank has given four financially distressed non-bank financial institutions (NBFIs) a final three-month opportunity to restore their financial health under strict conditions, warning that failure to raise fresh capital, overcome liquidity shortages and repay depositors within the deadline will trigger resolution proceedings, including liquidation.
Assistant Spokesperson Mohammad Shahriar Siddiqui announced the decision after Tuesday’s meeting of the Bangladesh Bank Board of Directors.
The four institutions granted an opportunity to restructure under Section 15 of the Bank Resolution Act, 2026 are Prime Finance and Investment Limited, GSP Finance Company (Bangladesh) Limited, Bangladesh Industrial Finance Company Limited (BIFC) and Premier Leasing and Finance Limited.
Bangladesh Bank said the reprieve was granted based on commitments by the boards of the four companies to restore them from their current non-viable condition to financial viability. During the three-month period, the boards and sponsor shareholders must inject fresh capital from their own resources and ensure adequate liquidity.
The institutions have also been directed to sell assets, recover overdue loans and reduce their classified loan ratios to specified levels through loan restructuring or negotiated settlements. They must use these measures to repay deposits owed to individual and general depositors.
The central bank said that if any of the conditions are not met within the stipulated period, the Bank Resolution Department will immediately initiate resolution proceedings under the Bank Resolution Act, 2026.
Earlier at the same board meeting, Bangladesh Bank decided to dissolve the boards of FAS Finance and Investment, Fareast Finance and Investment, Aviva Finance, Peoples Leasing and Financial Services, and International Leasing and Financial Services and place them under administrators, formally beginning the liquidation process.
According to Bangladesh Bank officials, the three-month period is the final opportunity for the four institutions to survive. Failure to meet the prescribed targets will result in their being brought under the same resolution framework as the first batch of five finance companies.
