Bangladesh Bank (BB) has granted a conditional three-month period to four financially distressed non-bank financial institutions (NBFIs) to implement comprehensive restructuring measures and restore their financial viability. The decision was taken at a meeting of the central bank's Board of Directors under Section 15 of the Bank Resolution Act, 2026, following commitments made by the respective boards of the institutions to undertake immediate corrective actions.
Affected Institutions
The four finance companies impacted by this directive are Prime Finance and Investment Limited, GSP Finance Company (Bangladesh) Limited, Bangladesh Industrial Finance Company Limited (BIFC), and Premier Leasing and Finance Limited.
Mandatory Restructuring Measures
According to a Bangladesh Bank directive, the institutions have been instructed to complete a series of mandatory measures within the next three months to improve their financial condition and protect depositors' interests. These measures include injecting fresh capital, arranging adequate liquidity support, selling assets and properties to raise funds, intensifying recovery of overdue loans, and substantially reducing classified loans through rescheduling, negotiated settlements, and other lawful recovery measures.
Depositor Protection and Legal Consequences
Priority has been given to repaying deposit liabilities, with the institutions required to ensure payments to both individual and general depositors during the stipulated period. Bangladesh Bank warned that failure to fulfill any of the stipulated conditions within the three-month timeframe would trigger immediate action by its Bank Resolution Department under the provisions of the Bank Resolution Act, 2026.
Objectives of the Measures
The central bank said the measures are aimed at restoring financial discipline, safeguarding depositors' interests, and ensuring the stability of the country's financial sector.
