The Central Bank says that it has observed certain erroneous news items published in few newspapers raising concerns over financial problems confronted by a few licensedfinance companies. Therefore, the Central Bank clarifying the facts behind theinaccuracy of such news in the public interes says thatthese companies are under specific supervision of the Central Bank to restructure their businesses under prevailing laws. While the Central Bank was able to
resurrect a number of companies successfully, few other companies still continue in the process of resurrection at various stages.
The Central Bank and Finance House Association (FHA) is launching a new policy to resolve financial problems of these companies. As announced in the Government Budget 2016, the Financial Asset Management Company (FAMA) is to be set up in due course to help these
companies to recover and manage their non-performing loans with state support. The FHA is proposed to help by arranging for leading finance companies and their investors to provide funding support to these
companies for business operations in the interest of safeguarding and promoting the nonbanking financial sector as a whole. The Central Bank will provide regulatory facilitation and arrange infusion of fresh capital from investors. A good number of investors with
overseas links are in negotiation with the Central Bank.
As a policy, the Central Bank will not issue any new licenses and, therefore, licenses of existing companies will have a high market value in the future which is a key factorencouraging new investors.
The Central Bank has now set up a new “Resolution Division” to take all necessary measures to address financial problems of these companies expeditiously. A new set of regulatory and supervisory measures will be
introduced in due course in line with the above joint initiative.
The Central Bank advises depositors and other stakeholders of all regulated entities to be cautious regarding such misleading information and co-operate with the companies and the Central Bank to enhance business operations of these companies in their interest.
