The Bangladesh Securities and Exchange Commission (BSEC) has expressed deep concern over the latest audited financial statements of 31 listed banks and financial institutions. Auditors have raised serious questions about their financial health and governance, noting adverse and qualified opinions, emphasis-of-matter paragraphs, going-concern uncertainties, and several significant risk factors. In this situation, BSEC has formally written to Bangladesh Bank Governor Ahsan H. Mansur, requesting necessary regulatory action based on the audit opinions.

According to BSEC, such auditor observations could undermine investor confidence and potentially put the entire capital market at risk. Therefore, as the primary regulator of the banking sector, swift intervention from the central bank is essential. The commission’s Corporate Reporting Department recently sent the formal letter to the governor. A total of 19 banks and 12 non-bank financial institutions (NBFIs) are included in this concerning report.

In reviewing the audit reports for the financial year ended 31 December 2024, auditors highlighted major errors leading to adverse opinions, qualified opinions due to doubts over specific areas, and significant risk factors that could affect future financial performance. Particularly, they issued warnings regarding the going-concern uncertainties of several institutions, raising serious questions about their long-term financial stability.

The financial institutions listed by the commission include: Bangladesh Finance, Bangladesh Industrial Finance Company, Bay Leasing & Investment, Fareast Finance & Investment, FAS Finance & Investment, First Finance, International Leasing & Financial Services, Islamic Finance & Investment, MIDAS Financing, People’s Leasing & Financial Services, Phoenix Finance & Investments, and Union Capital.

In its letter, the commission mentioned that the irregularities and risks indicated in the audited reports of these listed institutions pose a direct threat to market transparency and investor confidence. Ensuring the credibility of audit reports is crucial for maintaining trust in the market. Therefore, BSEC has requested Bangladesh Bank to take prompt regulatory action against the identified banks and financial institutions in accordance with the relevant laws and regulations.