In a major move to clean up the country’s struggling financial sector, Bangladesh Bank (BB) has decided to liquidate six Non-Bank Financial Institutions (NBFIs) due to extreme irregularities, looting, and mismanagement. Simultaneously, three other institutions have been granted a six-month window to demonstrate financial recovery.
The decision was finalized during a board meeting on Tuesday (January 27, 2026), chaired by Governor Ahsan H. Mansur. The central bank’s Executive Director and Spokesperson, Arif Hossain Khan, later confirmed the move to the press.
The Breakdown:
Previously, the central bank identified nine “unusable” NBFIs based on three critical indicators: inability to return depositors’ money, high default loan ratios, and massive capital shortfalls.
Institutions Facing Liquidation: FAS Finance & Investment, Premier Leasing, Fareast Finance, Aviva Finance, People’s Leasing and International Leasing.
Institutions on Probation (6-Month Extension): GSP Finance, Prime Finance, Bangladesh Industrial Finance Company (BIFC)
These three institutions were spared immediate closure after presenting recovery plans during recent hearings. However, they must prove their viability within the next six months or face similar consequences.
A Sector in Crisis
Decades of poor governance and systemic corruption have pushed these institutions to the brink. According to BB officials, default loan rates in these nine NBFIs range between 75% and 98%.
Much of this destruction is attributed to high-profile financial scams. Notably, PK Halder is accused of embezzling at least Tk 3,500 crore from four of these institutions: People’s Leasing, International Leasing, FAS Finance, and BIFC.
Relief for Small Depositors
Governor Ahsan H. Mansur announced that individual depositors of the nine troubled NBFIs can expect to receive their principal amounts by February, ahead of Ramadan.
“We are starting the asset valuation process. While the government has verbally approved nearly Tk 5,000 crore to facilitate these payments, depositors will only receive their original principal; no interest will be paid,” central bank officials clarified.
Key Statistics at a Glance
The financial health of the NBFI sector remains precarious. Out of 35 NBFIs currently operating in Bangladesh, the central bank has labeled 20 as “troubled.”
| Metric | Details |
| Total Deposits in 9 Failing NBFIs | Tk 15,370 Crore |
| Small Individual Deposits | Tk 3,525 Crore |
| Institutional/Bank Deposits | Tk 11,845 Crore |
| Highest Individual Exposure | People’s Leasing (Tk 1,405 Crore) |
| Current Default Loan Rate (Sector) | 37.11% (as of Sept 2025) |
The total volume of defaulted loans in the NBFI sector stood at Tk 29,408 crore at the end of September, marking a sharp increase of Tk 1,867 crore in just three months. This aggressive intervention by the central bank signals a shift toward a more stringent regulatory environment to restore public trust in the financial system.
