The Central Bank of Nigeria, CBN, has revoked the operational licenses of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc.
The apex bank, in a statement by its Acting Director of Corporate Communications, Mrs Hakama Sidi Ali, noted that the move was part of its efforts to re-position the mortgage sub-sector and promote a culture of compliance with relevant laws and regulations.
The CBN stated that the revocation was in exercise of the powers conferred on it under Section 12 of BOFIA 2020, and Section 7.3 of the Revised Guidelines for Mortgage Banks in Nigeria.
According to the bank, “the affected institutions had violated various Sections of BOFIA 2020 and the Revised Guidelines for Mortgage Banks in Nigeria.
Some of the violations were “failure to meet the minimum paid-up share capital requirement for the category of the bank licence granted to them by the CBN.
“Having insufficient assets to meet their liabilities,” as well as “Being critically undercapitalised with a capital adequacy ratio below the prudential minimum ratio as prescribed by the CBN; and
The apex bank also noted that the institutions failed to comply with several directives and obligations imposed upon them by the CBN.
The CBN expressed its commitment to its core mandate of ensuring financial system stability.
