The central bank has decided, in principle, to allow two more new non-bank financial institutions (NBFIs) in the country, provided they meet the necessary conditions.
The Bangladesh Bank (BB) in its board meeting held Wednesday discussed in details the proposals for setting up the two new NBFIs.
The proposed NBFIs are the CAPM Venture Capital and Finance Ltd. and the Meridian Finance and Investment Ltd.
The main entrepreneurs of the two proposed NBFIs are Mahmud Hossain and Kazi Aminul Islam.
BB deputy governor SK Sur Chowdhury told reporters that the central bank agreed in principle to allow the two NFFIs.
"We're seeking letters of intent for (LoI) from the aspirants for setting up the financial organisations," Mr. Chowdhury said.
He also said the entrepreneurs would have to provide detailed plans about the NBFIs.
However, the NBFIs in operation suggested that the new financial organisations should concentrate on special areas of business on receipt of licences. A number of NBFIs said the market was already saturated. "We're not opposing any new financial organisations, but they should concentrate on special areas of business," said Mr Asad Khan, chairman of the Bangladesh Leasing and Finance Companies Association (BLFCA), while talking to the FE.
"They may fund the country's growing small and medium enterprises (SMEs) or housing sector or any other potential sector," said Mr. Khan, also managing director of Prime Finance and Investment Ltd.
The country has now 31 NBFIs with nine of them licensed during the last tenure of the Awami League-led government. The NBFIs are believed to account for nearly 5.0 per cent of the total lending. However, the paid-up capital of the proposed NBFIs is Tk 1.0 billion each.
BB to allow 2 more NBFIs
FE Report | Published: March 06, 2014 00:00:00 | Updated: November 30, 2026 06:01:00
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