Market Update: New Age | NBFIs Prime, GSP, BIFC dropped from liquidation process – Full Analysis

The Bangladesh Bank has decided to drop three non-bank financial institutions from the immediate liquidation process while placing five others under resolution to proceed towards winding up.

The decision was taken at a Bangladesh Bank board meeting on Tuesday.

Earlier, the central bank had decided to declare nine non-bank financial institutions non-viable and liquidate them under the Bank Resolution Ordinance, 2025.

The institutions initially marked for liquidation were FAS Finance and Investment, Bangladesh Industrial Finance Company, Peoples Leasing and Financial Services, International Leasing and Financial Services, Aviva Finance, Premier Leasing and Finance, Fareast Finance and Investment, GSP Finance Company and Prime Finance and Investment.

Following a review, the board decided to allow GSP Finance Company, Prime Finance and Investment and Bangladesh Industrial Finance Company additional time to improve their financial position.

The remaining five NBFIs will now be placed under the formal resolution process, a step that could ultimately lead to liquidation.

All nine institutions are listed on the stock market. However, shareholders will not receive any compensation as years of losses have wiped out their net asset values, turning them negative.

Central bank officials said that the affected NBFIs had remained under stress for a prolonged period due to weak governance, widespread loan irregularities and chronic liquidity shortages.

On January 21, the Bangladesh Bank began formal hearings with the senior management of the nine institutions to assess whether they had valid grounds to contest liquidation.

In November 2025, the BB board approved the liquidation plan under the Bank Resolution Ordinance, 2025, the country’s first comprehensive legal framework for resolving troubled banks and non-bank financial institutions through merger, restructuring or closure.

The move comes amid a deepening crisis in the non-bank sector.

Defaulted loans at non-bank financial institutions rose to Tk 29,408 crore, or 37.11 per cent of total loans, as of September 2025, up from Tk 24,711 crore in June 2024.

The nine troubled institutions account for more than half of total defaults in the sector, highlighting long-standing mismanagement and capital erosion.