Bangladesh Bank has decided to appoint administrators to five non-bank financial institutions (NBFIs) as part of a closure or liquidation process. The decision was made at a board meeting held on Tuesday at the central bank’s headquarters, chaired by Governor Mostakur Rahman. The institutions affected are FAS Finance, Fareast Finance, Aviva Finance, Peoples Leasing and Financial Services, and International Leasing and Financial Services. Four other NBFIs—BIFC, Premier Leasing, GSP Finance, and Prime Finance—have been given three months to recover.

According to the central bank, the five institutions facing closure hold deposits of about Tk 2,700 crore from 27,000 individual depositors. Each depositor will be eligible to receive up to Tk 10 lakh after administrators are appointed. The decision follows years of financial distress, high default rates, and failure to return deposits. Bangladesh Bank had earlier issued notices to 20 NBFIs over poor performance, later narrowing the list to nine, and now five are set for closure.

The financial sector has been struggling with liquidity shortages, high non-performing loans, and weak governance. The central bank’s resolution framework aims to restore stability and protect depositors’ interests.