BB moves to resuscitate crisis-hit financial institutions

Bangladesh Bank (BB) has taken initiatives to resuscitate the non-banking financial institutions (NBFIs) facing crisis due to looting and mismanagement in.

Alongside, the central bank assured formation of a special refinancing fund to overcome liquidity crisis of the sector.

Mominul Islam, chairman of Bangladesh Leasing and Finance Companies Association (BLFCA), said this after a meeting with BB governor on Tuesday.

He said six out of 34 financial entities are in worse situation that affected the whole sector. That is why these financial institutions would be reformed.

The central bank asked them to submit a report on how to do it within next week, and it itself works in this regard, Mominul added.

The BLFCA chief also said they sought a Tk 10,000 crore refinancing fund to Bangladesh Bank to get over distrust created among of the depositors in this sector following financial health of People's Leasing and Financial Services (PLFS) deteriorated.

The central bank said it would take decision after reviwing in which structure such fund can be formed, he added.