Dhaka: The Bangladesh Bank has declared four financial institutions non-viable and initiated resolution proceedings by appointing administrators under the Bank Resolution Act, 2026. The move aims to restore good governance and accountability in the financial sector, protect the interests of depositors and other creditors, and rebuild public confidence in the financial sector, as stated in a press release issued today by the Bangladesh Bank.
According to Bangladesh Sangbad Sangstha, the four institutions affected by this decision are Aviva Finance Limited, Far East Finance and Investment Limited, FAS Finance and Investment Limited, and International Leasing and Financial Services Limited. This decision follows a thorough review of the financial condition and recovery prospects of these institutions, in line with a decision made by the Bangladesh Bank Board of Directors.
Bangladesh Bank identified several key reasons for declaring these institutions non-viable, including large capital shortfalls, a high volume of classified loans and investments, failure to maintain required liquidity, deterioration in earning capacity, and inability to meet liabilities to depositors and creditors.
To ensure smooth and effective implementation of the resolution process, Bangladesh Bank has appointed its relevant officials as Administrators and Associate Administrators for the institutions. These appointed officials will oversee the administration, management, and resolution activities of the respective financial institutions.
Bangladesh Bank expressed hope that this move would significantly contribute to restoring discipline and good governance in the financial sector while safeguarding the interests of depositors and other stakeholders.