4 financial instts declared non-viable

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 was taken 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, said a Bangladesh Bank press release issued today.

The four institutions are Aviva Finance Limited, Far East Finance and Investment Limited, FAS Finance and Investment Limited and International Leasing and Financial Services Limited.

The decision was taken following a review of the financial condition and prospects for recovery of the institutions, in line with a decision of the Bangladesh Bank Board of Directors.

Bangladesh Bank said the key reasons behind the decision included large capital shortfalls, a high volume of classified loans/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.

The appointed officials will be responsible for overseeing the administration, management and resolution activities of the respective institutions.

Bangladesh Bank expressed hope that the move would contribute significantly to restoring discipline and good governance in the financial sector and safeguarding the interests of depositors and other stakeholders.