Dhaka, May 13 -- The Board of Directors of Bangladesh Bank (BB) has given primary approval to the liquidation of five Non-Bank Financial Institutions (NBFIs) that are struggling with massive loan defaults and an inability to repay depositors.

The liquidation process for these institutions is expected to commence in July, according to sources privy to the decision made during a board meeting chaired by Governor Mostaqur Rahman on Tuesday.

The five institutions slated for liquidation are FAS Finance, Fareast Finance, Aviva Finance, People's Leasing and Financial Services, and International Leasing and Financial Services.

According to the central bank data, the non-performing loan (NPL) ratios of these institutions have reached critical l...