The Central Bank of Nigeria (CBN) has withdrawn the operating licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc.
The apex bank announced the development in a statement released on Tuesday in Abuja by its Acting Director of Corporate Communications, Mrs Hakama Sidi Ali.
According to the CBN, the revocation is part of ongoing efforts to restructure the mortgage banking sub-sector and enforce strict adherence to applicable laws and regulatory standards.
The bank explained that the action was taken pursuant to the powers granted to it under Section 12 of the Banks and Other Financial Institutions Act (BOFIA) 2020, as well as Section 7.3 of the Revised Guidelines for Mortgage Banks in Nigeria.
“The affected institutions violated various provisions of BOFIA 2020 and the Revised Guidelines for Mortgage Banks in Nigeria,” the CBN stated.
The regulator listed the infractions to include failure to meet the minimum paid-up share capital required for their licence category; inadequate asset levels to cover liabilities; severe undercapitalisation, with capital adequacy ratios falling below the prudential minimum set by the CBN; and non-compliance with multiple regulatory directives and obligations.
The apex bank reaffirmed its commitment to its statutory mandate of safeguarding financial system stability in Nigeria.
