Bangladesh Bank has approved the liquidation of nine non-banking financial institutions (NBFIs) after years of irregularities, mismanagement and failure to return depositors’ funds, marking one of the largest clean-ups of the sector to date.
The central bank’s Board of Directors signed off on the move at a meeting on November 30, allowing regulators to begin the formal process under the Bank Resolution Ordinance 2025, according to officials familiar with the decision.
“The board has approved the issue. The central bank will now scrutinise and finalise which institutions will be liquidated,” an executive director of Bangladesh Bank told UNB on Monday.
The institutions identified for potential closure are Peoples Leasing and Financial Services (PLFS), International Leasing and Financial Services, Aviva Finance, FAS Finance and Investment, Fareast Finance and Investment, Bangladesh Industrial Finance Company (BIFC), Premier Leasing and Finance, GSP Finance Company and Prime Finance and Investment Limited.
The initial shortlist was drawn up based on key indicators such as persistent failure to repay depositors, soaring non-performing loans and severe capital shortfalls. Regulators will now determine the final liquidation framework for each entity, the official added.
Central bank sources estimate the government may need to inject around Tk 9,000 crore to absorb losses and settle depositor claims, with priority given to small savers.
Although the liquidation move is being executed under the 2025 ordinance, Bangladesh Bank is also pursuing licence revocations under the Finance Company Act 2023.
Out of 35 NBFIs currently operating in Bangladesh, the central bank has designated 20 as distressed.
The nine institutions were issued notices on May 22 but failed to provide satisfactory responses within the deadline, prompting the regulator to advance toward dissolution.
