Cenbank's liquidation target: Who the troubled 20 NBFIs are
The central bank is preparing to liquidate around 20 non-bank financial institutions (NBFIs) identified as deeply troubled, with most no longer functioning in any meaningful capacity.
The 20 troubled NBFIs facing potential liquidation are: CVC Finance, Bay Leasing, Islamic Finance, Meridian Finance, GSP Finance, Hajj Finance, National Finance, Industrial and Infrastructure Development Finance Company Ltd (IIDFC), Premier Leasing, Prime Finance, Uttara Finance, Aviva Finance, Phoenix Finance, People's Leasing, First Finance, Union Capital, International Leasing, Bangladesh Industrial Finance Company Limited (BIFC), Fareast Finance, and FAS Finance.
Most are no longer operational in practice, and seven have default rates exceeding 90%, according to the central bank.
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Together, the 20 NBFIs hold deposits worth Tk22,127 crore. Institutional funds account for 74% of this amount, while the remaining 26% comes from individual depositors.
Show-cause notices have already been served on these NBFIs, asking why their licences should not be cancelled.
The central bank has said liquidation efforts are aimed at cleaning up the sector and protecting the broader financial system from further risk.
Institutions failing to provide satisfactory responses to the notices will be placed under liquidation procedures.
The process is expected to take time, but action is also being planned against those involved in loan fraud and irregularities.
Legal action is also being planned against those involved in loan fraud and mismanagement at these institutions.
