Bangladesh Bank has granted a final three-month conditional window to four struggling non-bank financial institutions (NBFIs) to undergo restructuring.
The central bank warned that failure to raise new capital, overcome liquidity shortages, and settle the claims of individual and general depositors within this period will result in the immediate commencement of resolution or liquidation proceedings.
The decision was reached following a meeting of the Bangladesh Bank board of directors on Tuesday, according to Assistant Spokesperson Mohammad Shahriar Siddiqui.
The four institutions granted this opportunity 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 & Finance Ltd.
The central bank stated that this timeframe was provided as an opportunity for the institutions to transition from their current ineffective state to becoming functional entities, based on commitments made by their respective boards.
To achieve this, the boards of directors and sponsor shareholders must inject new capital from their own funds and arrange for the necessary liquidity.
Additionally, the institutions are required to ensure the repayment of individual and general depositors. This must be facilitated through the sale of their own assets, the recovery of overdue loans, and the reduction of classified loan rates to a specified level via rescheduling or mutual settlements.
The central bank explicitly noted that if any of these conditions are not met within the stipulated three months, the Bank Resolution Department will immediately initiate resolution activities against the concerned institution in accordance with the Bank Resolution Act, 2026.
During the same meeting, Bangladesh Bank decided to dissolve the boards and appoint administrators for five other institutions – FAS Finance and Investment, Fareast Finance and Investment, Aviva Finance, People’s Leasing and Financial Services, and International Leasing and Financial Services.
These five entities have already entered the liquidation process.
According to Bangladesh Bank officials, this three-month period represents the final recovery chance for the four NBFIs. Failure to meet the designated targets will see them follow the first five institutions into liquidation.
