The central bank has given final approval to liquidate or close 9 non-bank financial institutions (NBFIs) due to their inability to return depositors’ money, high non-performing loans, and capital shortfalls. Among these institutions, 8 are listed on the country’s stock market, and their shares are still being traded. However, according to sources at the Dhaka Stock Exchange (DSE), trading of these shares may be suspended within the next day or two.

A senior DSE official said, “Discussions are ongoing, and a decision may come today or tomorrow.”

On Sunday, at a board meeting chaired by Bangladesh Bank Governor Dr. Ahsan H. Mansur, final approval was granted for the liquidation of the 9 financial institutions. Earlier, based on three indicators failure to return depositors’ funds, high non-performing loans, and capital shortfall the decision to close these institutions was made in August.

The institutions selected for liquidation are: Peoples Leasing and Financial Services, International Leasing and Financial Services, Aviva Finance, FAS Finance and Investment, Fareast Finance and Investment, Bangladesh Industrial Finance Company, Premier Leasing and Finance, GSP Finance Company, and Prime Finance and Investment Limited. Among these, all except Aviva Finance are listed on the country’s stock market.

Following yesterday’s news about the closures, all 8 listed companies experienced maximum circuit breaker price drops today. By 1:00 PM, Peoples Leasing shares fell nearly 10% or 7 poisha, closing at 67 poisha.

Similarly:

• International Leasing: down 10% or 9 poisha to 81 poisha
• FAS Finance: down nearly 9% or 10 poisha to Tk 1.10
• Fareast Finance: down 10% or 8 poisha to 73 poisha
• Bangladesh Industrial Finance: down 9% or 20 poisha to Tk 2.10
• Premier Leasing: down nearly 10% or 8 poisha to 77 poisha
• GSP Finance: down nearly 6% or 10 poisha to Tk 1.80
• Prime Finance: down nearly 7% or 10 poisha to Tk 1.50