BB declares four financial institutions non-viable, starts resolution process
The central bank dissolved the boards and cancelled the appointments of CEOs of Aviva Finance, Fareast Finance, FAS Finance and International Leasing.
Bangladesh Bank has declared four financial institutions non-viable and initiated resolution proceedings against them under the Bank Resolution Act, 2026, citing severe financial weaknesses and their inability to meet obligations to depositors and other creditors.
According to a press release issued today (9 August), the institutions are Aviva Finance Limited, Fareast Finance and Investment Limited, FAS Finance and Investment Limited, and International Leasing and Financial Services Limited.
The central bank said it took the decision to restore good governance and accountability in the financial sector, protect the interests of depositors and other creditors and rebuild public confidence in the sector.
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Following the declaration of the institutions as non-viable and their inclusion under the Bank Resolution Act, Bangladesh Bank exercised powers granted to it under the law to dissolve their boards of directors and cancel the appointments of their chief executive officers.
Administrators have also been appointed to oversee the resolution process and ensure its smooth and effective implementation while safeguarding the interests of depositors and other stakeholders.
The decision was taken following a review of the institutions' financial strength and prospects for recovery, based on a decision of the Bangladesh Bank board.
According to the central bank, the key reasons include large capital shortfalls, high levels of classified loans and investments, failure to maintain adequate liquidity, deteriorating earning capacity, and inability to repay liabilities owed to depositors and creditors.
Bangladesh Bank officials have been appointed as Administrator and Associate Administrator to manage the resolution process at the four institutions.
They will be responsible for overseeing the administration, management and resolution activities of the respective institutions.
Bangladesh Bank expressed hope that the move would help restore discipline and good governance in the financial sector and protect the interests of depositors and other stakeholders.
