Bangladesh Bank liquidates four NBFIs
Analysis based on 7 articles · First reported Aug 09, 2026 · Last updated Aug 10, 2026
The resolution of four NBFIs signals a firm regulatory stance, potentially increasing credit risk perception in Bangladesh's non-bank financial sector and affecting investor confidence. Depositors of the affected institutions face uncertainty, though the government-backed repayment scheme may mitigate systemic fallout.
On 9 August 2026, Bangladesh — Bangladesh Bank declared four non-bank financial institutions (NBFIs) non-viable and initiated resolution proceedings under the Bank Resolution Act, 2026. The institutions are Aviva Finance Limited, Fareast Finance and Investment Limited, Khandelwal Finance Private Limited, and ABC Financial Leasing. The central bank dissolved their boards, terminated CEO appointments, and appointed its own officials as administrators to oversee the resolution process. The decision was based on severe financial weaknesses including large capital shortfalls, high levels of classified loans, liquidity failures, deteriorating earnings, and inability to meet obligations to depositors and creditors. Individual depositors will be prioritized in repayment, with each eligible to receive up to Tk 10 lakh. The move aims to restore governance, protect depositors, and rebuild confidence in the financial sector. People s Leasing and Financial Services Limited was initially considered but excluded due to a legal complication.
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