BB declares four financial institutions non-viable, begins resolution process

Bangladesh Bank (BB) has declared four financial institutions non-viable and initiated resolution proceedings under the Bank Resolution Act, 2026, citing severe financial weaknesses and their inability to meet obligations to depositors and other creditors.

The institutions are Aviva Finance Limited, Far East Finance and Investment Limited, FAS Finance and Investment Limited, and International Leasing and Financial Services Limited, according to a BB press release issued on Sunday.

The central bank said the decision was taken following a review of the institutions’ financial viability and prospects for recovery, after approval by its board of directors.

The key reasons include large capital shortfalls, high levels of classified loans and investments, failure to maintain adequate liquidity, declining earning capacity and inability to repay liabilities to depositors and other creditors.

As part of the resolution process, Bangladesh Bank officials have been appointed as administrators and associate administrators to oversee the administration, management and resolution of the four institutions.

The central bank said the move was aimed at restoring good governance and accountability in the financial sector, protecting the interests of depositors and other creditors, and rebuilding public confidence in the financial system.

Bangladesh Bank expressed hope that the measures would help restore discipline and good governance in the financial sector while safeguarding the interests of depositors and other stakeholders.