BB gives 4 finance companies 3 months to implement restructuring plan

Bangladesh Bank (BB) has granted a conditional three-month period to four financially distressed non-bank financial institutions (NBFIs) to implement comprehensive restructuring measures and restore their financial viability.

The decision was taken at a meeting of the central bank's Board of Directors under Section 15 of the Bank Resolution Act, 2026, following commitments made by the respective boards of the institutions to undertake immediate corrective actions.

The four finance companies are Prime Finance and Investment Limited, GSP Finance Company (Bangladesh) Limited, Bangladesh Industrial Finance Company Limited (BIFC) and Premier Leasing and Finance Limited.

According to a Bangladesh Bank directive, the institutions have been instructed to complete a series of mandatory measures within the next three months to improve their financial condition and protect depositors'
interests.

As part of the restructuring plan, the boards and sponsor shareholders of the companies must inject fresh capital and arrange adequate liquidity support. They have also been directed to sell their own assets and properties to raise funds.

The central bank further instructed the companies to intensify recovery of overdue loans and substantially reduce classified loans through rescheduling, negotiated settlements and other lawful recovery measures.

Priority has been given to repaying deposit liabilities, with the institutions required to ensure payments to both individual and general depositors during the stipulated period.

Bangladesh Bank warned that failure to fulfill any of the stipulated conditions within the three-month timeframe would trigger immediate action by its Bank Resolution Department under the provisions of the Bank Resolution Act, 2026.

The central bank said the measures are aimed at restoring financial discipline, safeguarding depositors' interests and ensuring the stability of the country's financial sector.