Bangladesh Bank has given three months to four non-bank financial institutions to recover from their financial distress. The institutions—Prime Finance and Investment Limited, GSP Finance Company (Bangladesh) Limited, Bangladesh Industrial Finance Company Limited, and Premier Leasing and Finance Limited—must raise new capital, ensure liquidity, and make visible progress in repaying depositors within this period. Failure to meet these conditions will trigger resolution or liquidation proceedings under the Bank Resolution Act, 2026.

According to a central bank press release, the decision was made under Section 15 of the Bank Resolution Act, 2026, based on the board’s commitment to take corrective measures. The institutions are required to sell assets, recover overdue loans, and restructure classified loans to reduce default rates. Bangladesh Bank emphasized that depositors’ interests must be prioritized throughout the restructuring process.

The central bank has also approved a coordinated action plan for nine distressed financial institutions, dividing them into two groups. The most troubled five will enter the resolution process, and a special fund will be created to repay depositors after mandatory forensic audits identify irregularities and responsible individuals.