Bangladesh Bank has begun hearings with senior executives of nine non-bank financial institutions (NBFIs) to assess whether there are valid grounds to halt their planned liquidation.

The central bank said the hearings, being held today and tomorrow at its Dhaka headquarters, follow earlier notices asking the firms to explain why they should not be wound up. At the sessions, the NBFIs are expected to present their defence, while Bangladesh Bank officials will outline the case for liquidation.

The institutions facing possible closure are FAS Finance, Bangladesh Industrial Finance Company, Premier Leasing, Fareast Finance, GSP Finance, Prime Finance, Aviva Finance, People’s Leasing, and International Leasing.

In November last year, the Bangladesh Bank board approved its liquidation under the Bank Resolution Ordinance 2025, the country’s first comprehensive legal framework for resolving distressed banks and non-bank financial institutions. The ordinance sets out procedures for mergers, restructuring, or closure, and defines the order of repayment to creditors after asset sales.

According to central bank data, the nine firms together account for 52% of total defaulted loans in the NBFI sector, amounting to Tk 25,089 crore at the end of 2024.

Bangladesh Bank Governor Ahsan H Mansur has said individual depositors of the troubled institutions may receive their principal amounts before Ramadan in February. Officials say the government has verbally approved about Tk 5,000 crore for repayments.

The nine NBFIs hold Tk 15,370 crore in deposits, including Tk 3,525 crore from individual depositors.