NBFI depositors to get back up to Tk 10 lakh
- BB to liquidate five NBFIs from July
- Individual depositors to get up to Tk 10 lakh
- Repayment funds sought from Ministry of Finance
The board of Bangladesh Bank yesterday decided in principle to liquidate five non-bank financial institutions (NBFIs) from July this year, according to central bank officials.
The non-banks are FAS Finance, Fareast Finance, Aviva Finance, People’s Leasing and International Leasing.
For all latest news, follow The Daily Star's Google News channel. Before the liquidation process begins, the central bank will announce a scheme for depositors. Under it, individual depositors with savings of up to Tk 10 lakh will receive a full refund of their principal amounts, but no interest payments.
Officials familiar with the matter told The Daily Star that the central bank will seek funds from the Ministry of Finance to meet the repayment obligations.
The decision was taken at the central bank board meeting yesterday. It was chaired by Bangladesh Bank Governor Md Mostaqur Rahman.
Central bank officials said that individual depositors with savings above Tk 10 lakh will be repaid on a proportional basis, depending on the availability of funds and the size of their deposits.
To manage the process, they said the central bank is planning to introduce a separate repayment mechanism.
Earlier, the Bangladesh Bank board under the interim government approved the liquidation of six non-banks, including Premier Leasing.
In November last year, it approved the liquidation proceedings under the Bank Resolution Ordinance 2025, the country’s first comprehensive framework for resolving failed banks and non-banks.
The latest decision to liquidate five NBFIs came amid protests by depositors of the distressed institutions.
On May 7, an alliance representing more than 12,000 depositors of six troubled NBFIs urged the central bank to take urgent steps to return their long-frozen funds.
The six institutions are FAS Finance, Premier Leasing, Fareast Finance, Aviva Finance, People’s Leasing and International Leasing.
The depositors have submitted multiple memorandums to the Bangladesh Bank governor, saying they have faced severe financial hardship, mental distress and a humanitarian crisis as their savings have remained locked 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,” one memorandum said, adding that several depositors had already died without receiving necessary medical care.
Over the years, several NBFIs have collapsed due to widespread mismanagement, weak governance and heavy exposure to non-performing loans. Poor regulatory intervention and oversight failures further deepened the crisis, eventually leading to liquidation.
Under the interim government, the regulator initially proposed liquidating nine NBFIs: FAS Finance, Bangladesh Industrial Finance Company (BIFC), Premier Leasing, Fareast Finance, GSP Finance, Prime Finance, Aviva Finance, People’s Leasing and International Leasing.
According to Bangladesh Bank data, these nine institutions hold deposits worth Tk 15,370 crore, of which Tk 3,525 crore belongs to individual depositors and Tk 11,845 crore to banks and corporate clients.
After hearings in January this year, three institutions, Prime Finance, GSP Finance and BIFC, were given three to six months to improve their financial condition.
As of September 2025, the country’s 35 NBFIs had non-performing loans of Tk 29,408.66 crore, accounting for 37.11 percent of total outstanding loans of Tk 79,251.11 crore, according to Bangladesh Bank data.
A year earlier, in September 2024, the sector’s non-performing loan ratio stood at 35.52 percent.
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