Dhaka, Bangladesh (BBN) - The central bank has allowed four financially distressed non-bank financial companies (NBFCs) a special three-month period to restore their financial health and ensure repayment of depositors' funds before initiating regulatory resolution measures.
The decision was taken by the Bangladesh Bank (BB)’s Board of Directors under Section 15 of the Bank Resolution Act, 2026, allowing the institutions to implement corrective measures aimed at returning to a viable operating condition.
The four finance companies are Prime Finance & Investment Ltd, GSP Finance Company (Bangladesh) Ltd, Bangladesh Industrial Finance Company Ltd (BIFC), and Premier Leasing & Finance Ltd.
Under the directive, the companies must reconstitute their boards, arrange fresh capital from existing or new shareholders, and inject the necessary liquidity within the stipulated period.
The NBFCs have also been instructed to improve their financial position by selling assets, recovering defaulted loans and rescheduling or settling classified loans to reduce their non-performing loan (NPL) ratios. They must ensure repayment of deposit liabilities owed to both individual and institutional depositors.
The central bank said the measures are intended to bring the companies back to a sustainable operating position while protecting the interests of depositors and maintaining financial stability.
According to the directive, if any of the four institutions fail to meet one or more of the stipulated conditions within the three-month deadline, the Bank Resolution Department will immediately initiate resolution proceedings under the provisions of the Bank Resolution Act, 2026.
The latest move marks the first major application of the newly enacted resolution law to troubled finance companies, reflecting the central bank's efforts to address long-standing weaknesses in the country's non-bank financial sector and strengthen depositor protection.
BBN/SSR/AD