BB plans scheme to return funds to 4 troubled NBFIs
Bangladesh Bank is preparing a scheme to return deposits to customers of four non-bank financial institutions declared “non-functional” earlier this month.
The scheme will be announced after the central bank receives the necessary funds and approval from the government, Bangladesh Bank spokesperson Arief Hossain Khan said.
On Aug 9, Bangladesh Bank declared Aviva Finance Ltd, Far East Finance and Investment Ltd, FAS Finance and Investment Ltd and International Leasing and Financial Services Ltd “non-functional”.
It also dissolved the boards of directors of the four companies and appointed administrators to take over their responsibilities.
Three of the four companies, excluding Aviva Finance, are listed on the stock market.
Trading of their shares was suspended indefinitely by the Dhaka and Chattogram stock exchanges the day after the companies were declared non-functional.
Central Bank Executive Director Arief said the policy for returning the deposits of customers of the four companies in phases was being finalised under the proposed scheme.
“The necessary work is under way. The scheme will be announced once the funds are available. It has not yet been decided when that will happen,” reports bdnews24.com.
However, a senior central bank official said Bangladesh Bank was preparing to announce the scheme by the end of this week or next week.
Under the proposed scheme, individual depositors of the four companies would be allowed to withdraw up to Tk 10 lakh in the first phase.
Depositors with more than Tk 1 lakh would receive the remaining amount in instalments, according to the proposal.
The scheme will also include a schedule specifying the dates for each instalment.
The four companies now have administrators overseeing their operations.
However, the regulator has yet to decide whether the companies will eventually be liquidated, merged or allowed to raise fresh capital.
The proposed scheme is therefore intended to begin the process of returning depositors’ money while the regulator considers the longer-term future of the four institutions.
