Dhaka, Jan. 6 -- Bangladesh Bank is set to initiate the liquidation of nine non-bank financial institutions (NBFIs) following the consolidation of five troubled Shariah banks into a single entity, marking a major step in the central bank's efforts to reform the country's financial sector.

Governor Ahsan H Mansur told reporters on Monday that the institutions will be declared 'non-viable' within the week, after which a forensic audit will determine their actual financial position and net asset value (NAV).

"The extent of the institutions' negative asset position cannot be confirmed until the audit is complete," Mansur said, adding that further measures will be taken once the reports are received.

The central bank is also preparing to re...