DSE, CSE suspend trading in 3 NBFIs declared non-viable

The Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) have suspended trading in the shares of three non-bank financial institutions (NBFIs) after Bangladesh Bank declared them "non-viable" under the Bank Resolution Act, 2026.

The affected companies are Fareast Finance and Investment, FAS Finance and Investment, and International Leasing and Financial Services. The suspension took effect today (10 August) and will remain in force until further notice, the bourses said.

Before the suspension came into effect, all three stocks fell sharply on the Dhaka bourse.  International Leasing and Fareast Finance each declined 8.69% to Tk2.10, while FAS Finance dropped 7.40% to Tk2.50.

Bangladesh Bank declared the three institutions non-viable as part of its resolution proceedings, citing severe financial weaknesses and their inability to meet obligations to depositors and other creditors.

The central bank had earlier initiated resolution proceedings against four financial institutions under the Bank Resolution Act, 2026. The fourth, Aviva Finance, was also declared non-viable but is not listed on the bourses.

Bangladesh Bank said the resolution measures were aimed at restoring good governance and accountability in the financial sector, protecting depositors and other creditors, and rebuilding public confidence.

Following the declaration, the central bank exercised its powers under the new law to dissolve the boards of directors of the affected institutions and cancel the appointments of their chief executive officers. Administrators have been appointed to oversee the resolution process and ensure its effective implementation while safeguarding the interests of depositors and other stakeholders.

The decision followed 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 factors behind the declaration included large capital shortfalls, high levels of classified loans and investments, inadequate liquidity, deteriorating earning capacity, and the inability to repay liabilities owed to depositors and creditors.

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