BB Gives 4 Ailing Finance Companies 3 Months to Turn Around under Strict Conditions

The Bangladesh Bank has granted a final three-month window to four dysfunctional non-bank financial institutions (NBFIs) to restructure their operations and settle depositors' liabilities.

The central bank announced this conditional relaxation through an official directive issued on Wednesday. Failure to comply with the stipulated conditions within this timeframe will prompt immediate regulatory intervention under the newly enacted Bank Resolution Act, 2026.

The four embattled finance companies are Prime Finance and Investment, GSP Finance, Bangladesh Industrial Finance, and Premier Leasing and Finance Limited. This regulatory move aims to restore stability in the financial sector and safeguard the interests of ordinary depositors.

According to the central bank's directive, these companies must inject fresh capital and secure necessary liquidity through their respective boards of directors and sponsor shareholders within the next three months. Furthermore, they are required to liquidate corporate assets, recover outstanding dues, and reduce their non-performing loans (NPLs) to a specific target through loan rescheduling or settlements. Utilizing these recovered funds, the firms must ensure the phased repayment of liabilities owed to general and individual depositors.

The central bank strictly warned that if any of the finance companies fail to meet one or more of the specified conditions within the three-month deadline, the Bank Resolution Department of Bangladesh Bank will immediately initiate resolution proceedings in accordance with the provisions of the Bank Resolution Act, 2026.