Dhaka, Bangladesh (BBN) – The central bank has asked the non-banking financial institutions (NBFIs) to shut their unauthorized subsidiaries by September 30 this year.
“We’ve taken the measures to minimize the risk of the NBFIs,” a senior official of the Bangladesh Bank (BB) told the BBN in Dhaka on Thursday.
The central bank issued a circular in this connection on the day and asked the chief executives and managing directors of all 31 NBFIs to maintain the latest directives relating to subsidiary formation.
The central bank observed the trend of investing in various types of business by NBFIs, those are not only out of purview of their authorized business, but also risky for investment.
The BB also said the NBFIs, those already formed subsidiaries without seeking approval, should withdraw their investment from such operations by September 30 this year.
Under the existing rules and regulations, all NBFIs should get approval from the central bank for operating their subsidiaries.
BBN/SSR/AD-29Mar12-9:26 pm (BST)