Bangladesh Bank declares four finance firms non-viable

Bangladesh Bank has declared four non-bank financial institutions non-viable under the Bank Resolution Act 2026 and placed them under formal resolution proceedings, appointing administrators to oversee their affairs in a decisive intervention aimed at restoring order to a beleaguered segment of the financial sector.

The central bank named the affected institutions in a press release issued Sunday as Aviva Finance Limited, Far East Finance and Investment Limited, FAS Finance and Investment Limited, and International Leasing and Financial Services Limited. According to the announcement, the decision followed a board-level review of each institution's financial soundness and prospects for recovery, with the central bank citing substantial capital shortfalls, elevated levels of classified loans and investments, chronic failure to maintain requisite liquidity, deteriorating earning capacity, and an inability to meet obligations to depositors and other creditors as the principal grounds for intervention.

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To steer the resolution process, Bangladesh Bank has designated its own officials as administrators and associate administrators, tasking them with overseeing governance, management, and the broader wind-down operations at each institution. The regulator expressed confidence that the move would help reinstate discipline and sound governance across the financial sector while safeguarding the interests of depositors and other stakeholders caught up in the fallout.