B Mirror Report: Bangladesh Bank has said that four financial institutions are no longer viable as part of its ongoing efforts to improve governance and accountability in the financial sector and protect depositors and other creditors.
In a press release on Sunday (August 9), the central bank said the institutions have been placed under a resolution process, and administrators have been appointed to manage their operations.
The four 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 Bangladesh Bank, the decision came after a detailed review of their financial health and recovery prospects, based on a decision by its Board of Directors.
The central bank pointed to several reasons behind the move, including large capital shortfalls, high levels of bad loans and investments, failure to maintain required liquidity ratios, falling profits, and an inability to meet obligations to depositors and creditors.
To carry out the resolution process, Bangladesh Bank officials have been appointed as administrators and associate administrators. They will oversee the management and resolution activities of these institutions.
Bangladesh Bank said it expects this step to help bring more discipline and good governance to the financial sector, protect depositors and other stakeholders, and rebuild public trust in the financial system.
