Bangladesh Bank’s board has given preliminary approval to close or liquidate five non-bank financial institutions (NBFIs) starting in July 2026. The decision was taken at a board meeting chaired by Governor Mostakur Rahman. The institutions affected are FAS Finance, Fareast Finance, Aviva Finance, Peoples Leasing, and International Leasing, all of which have default loan ratios between 93 and nearly 100 percent. The central bank cited their failure to recover defaulted loans and repay depositors as the reason for the move.

According to a central bank official, the closures will proceed under the Bank Resolution Act, with administrators and additional officers appointed to oversee the process. The government has pledged to allocate about Tk 5,000 crore in the upcoming budget to repay individual depositors. The law outlines how troubled institutions may be merged, restructured, or closed, and how their assets will be sold to repay creditors.

The decision follows earlier notices to 20 NBFIs with high default rates. After several reviews, the list was narrowed to five institutions now slated for closure.