Bangladesh Bank has decided to shut down nine troubled non-bank financial institutions (NBFIs) after years of losses, irregularities, and soaring default loans, marking the first major dissolution under the newly enacted Integrated Bank Resolution Ordinance 2025.

The central bank’s board, chaired by Governor Ahsan H. Mansur, has approved the liquidation of Fast Finance, Bangladesh Industrial Finance Company, Premier Leasing, Fareast Finance, GSP Finance, Prime Finance, Aviva Finance, People’s Leasing, and International Leasing—institutions that collectively hold 52 percent of the NBFI sector’s total non-performing loans. With Tk 15,370 crore in stuck deposits, including Tk 3,525 crore belonging to individuals, Bangladesh Bank will now appoint liquidators, sell assets, and prioritize returning funds to depositors.

The government has also given verbal consent to release around Tk 5,000 crore to facilitate repayments. Years of weak oversight, nepotism, reckless lending, and falsified accounting pushed these institutions to collapse, leading the central bank earlier this year to classify 20 NBFIs as “Red,” of which nine are now being closed. The remaining 11 institutions have been instructed to submit survival and restructuring plans as the sector undergoes major cleanup and reform.