Bangladesh Bank has convened a special board meeting on Tuesday at 1 p.m. at its headquarters to make key decisions regarding nine financial institutions that have long been in crisis. The meeting is expected to decide on proceeding with the closure of five institutions and granting three months to four others for recovery. The institutions proposed for closure include FAS Finance, Fareast Finance, Aviva Finance, Peoples Leasing and Financial Services, and International Leasing and Financial Services.

According to central bank sources, the five institutions facing closure hold around Tk 2,700 crore in individual deposits. The meeting will also discuss how these deposits will be refunded and may consider appointing administrators to oversee the process. If approved, the appointment of administrators and the refund process will begin soon.

Institutions given three months—Bangladesh Industrial Finance Company, Premier Leasing and Finance, GSP Finance, and Prime Finance—must demonstrate their ability to repay depositors within that period. Failure to do so will bring them under the resolution or closure process. The financial sector has been struggling with liquidity shortages, high default loans, and weak governance, prompting this new resolution initiative.