Bangladesh Bank has declared four financial institutions non-viable and initiated resolution proceedings, appointing administrators to oversee the process.
The institutions affected are Aviva Finance Limited, Fareast Finance and Investment Limited, FAS Finance and Investment Limited, and International Leasing and Financial Services Limited.
Following a decision by the board of directors, the central bank took these steps after reviewing the financial capacity and recovery prospects of the institutions. Consequently, the boards of these entities have been dissolved, and the appointments of their chief executive officers have been terminated.
Resolution is a specific legal process through which the regulatory authority assumes control of a financially non-viable institution to protect the interests of depositors and creditors while determining the entity’s future.
The central bank stated that these institutions were declared non-viable due to substantial capital shortfalls, high levels of classified loans and investments, failure to maintain required liquidity, declining earning capacity, and an inability to meet obligations to depositors and other creditors.
To manage this process, relevant officials from Bangladesh Bank have been appointed as administrators and associate administrators. They will be responsible for the administration, management, and resolution activities of the institutions.
This intervention, conducted under the Bank Resolution Act, 2026, allows the central bank to take direct control of these non-bank financial institutions to determine their future.
According to Bangladesh Bank, the move aims to re-establish corporate governance and accountability, protect the interests of depositors and creditors, and restore public confidence in the financial sector.
