Bangladesh Bank will appoint administrators on Sunday as it moves to close five weak non-bank financial institutions, according to sources cited by Amar Desh. The government has already given final approval for the closures. The institutions are Peoples Leasing and Financial Services, International Leasing and Financial Services, Aviva Finance, FAS Finance and Investment, and Fareast Finance and Investment. Their existing boards will be suspended and managing directors’ contracts cancelled when administrators are appointed.

Administrators are initially expected at four institutions, excluding Peoples Leasing because of pending litigation and the absence of a court order. A Bangladesh Bank spokesperson, Arif Hossain Khan, said the closure process was under way and administrators would be appointed soon. At the end of last December, non-performing loan ratios at the five institutions ranged from 93 percent to nearly 100 percent.

The five institutions hold total deposits of Tk16,076 crore, including about Tk2,700 crore in individual deposits. Individual depositors are to receive priority repayment of up to Tk10 lakh. Four other institutions have been given three months to recover; if they fail, they will automatically enter the resolution process.