NBFI depositors seek urgent BB steps to get back funds

An alliance representing more than 12,000 depositors of six distressed non-bank financial institutions (NBFIs) has urged the Bangladesh Bank (BB) to take immediate steps to facilitate the return of their long-frozen funds.

The six NBFIs -- FAS Finance, Premier Leasing, Fareast Finance, Aviva Finance, People’s Leasing, and International Leasing -- are now under liquidation.

Over the years, several NBFIs collapsed amid widespread mismanagement, weak governance, and heavy exposure to non-performing loans. Poor regulatory oversight and delayed action by the central bank deepened the crisis and ultimately led to liquidation.

Yesterday, in a memorandum submitted to the BB governor in Dhaka, the platform titled “Alliance of Depositors of 6 NBFIs for Recovery” said depositors have been facing acute financial hardship, mental distress, and a humanitarian crisis, as their savings have remained locked up for nearly seven years.

“Many depositors are unable to access treatment for critical illnesses such as cancer, kidney disease, and heart conditions due to a lack of funds,” the memorandum said, adding that several depositors have already died without receiving necessary medical care.

As the regulator of banks and NBFIs, the central bank bears the highest responsibility to safeguard public deposits, the alliance said, calling for urgent intervention to resolve the crisis.

The alliance outlined three key demands, including an immediate announcement of a clear, realistic, and actionable roadmap in line with the previously declared July 2026 deadline for refunding depositors’ money.

The other two demands are the introduction of an effective mechanism to prioritise repayments for individual depositors and the arrangement of a meeting between the governor and three to four representatives of the depositors to formally present their demands.

The depositors expressed hope that the central bank would take swift, effective, and humane measures to address the crisis and ensure the protection of public savings.

They also called upon the government, the central bank, and all relevant authorities to take urgent and effective steps to restore confidence in the financial sector and ensure justice for affected depositors.

In January this year, BB decided to liquidate six of the country’s 35 non-bank financial institutions due to poor financial health.

The current BB governor, Md Mostaqur Rahman, appointed by the BNP-led government, has said reforms will continue, including those liquidations.