Bangladesh Bank has dissolved the boards of directors of three non-bank financial institutions (NBFIs) previously declared “ineffective” and appointed administrators to oversee their operations.
From now on, the administrators will exercise all powers and responsibilities formerly held by the respective boards.
The three institutions whose boards have been dissolved are Aviva Finance Ltd, FAS Finance & Investment Ltd, and International Leasing & Financial Services Ltd. The process of appointing an administrator for a fourth institution, Fareast Finance & Investment Limited, is currently ongoing.
Key appointments
At International Leasing, Mohammad Iqbal Hossain, a director of Bangladesh Bank, has been appointed as the administrator.
He is supported by Associate Administrators Farid Uddin Ahmad and Zahirul Islam Bhuiyan, both of whom are Additional Directors at the central bank. They have already assumed their responsibilities.
For FAS Finance, Abu Shama Md Ataur Rahman, a director of Bangladesh Bank, has been named administrator. The Associate Administrators are Additional Directors Mohammad Joynul Abedin Bashir and Rokshana Akter.
At Aviva Finance, Bangladesh Bank Director Alauddin Hossain has been appointed as administrator. He will be assisted by associate administrators AKM Golam Bahlul and Mahbubur Rahman, both additional directors at the central bank.
Market impact and legal framework
Of the four institutions, all except Aviva Finance are listed on the country’s stock exchanges. Following the central bank’s declaration of these four firms as ineffective on 9 August, both stock exchanges suspended the trading of their shares indefinitely the following day.
International Leasing informed investors through the Dhaka Stock Exchange on Tuesday that its board of directors was dissolved under the Bank Resolution Act, 2026.
Citing a letter from Bangladesh Bank, the institution stated that it was declared an ineffective finance company to maintain financial stability, re-establish good governance, protect the interests of depositors and investors, and restore public confidence in the financial sector.
The same letter noted that as part of the resolution proceedings under the Bank Resolution Act, 2026, the Managing Director/Chief Executive Officer has been relieved of their duties.
Bangladesh Bank finalised the decision to begin resolution activities for Aviva Finance, Fareast Finance, FAS Finance, and International Leasing on 9 August.
