The Central Bank of Nigeria (CBN), has revoked the licences of Aso Savings and Loans Plc, and Union Homes Savings and Loans Plc, over gross violation of the Bank and Other Financial Institutions Act (BOFIA) 2020, and the Revised Guidelines for Mortgage Banks in Nigeria.
This was in exercise of its powers conferred on it under Section 12 of BOFIA 2020, and Section 7.3 of the Revised Guidelines for Mortgage Banks in Nigeria.
CBN, in a statement by its Ag. Director, Corporate Communications Department, Mrs. Hakama Sidi Ali, explained that the was part of its efforts to re-position the mortgage sub-sector and promote a culture of compliance with relevant laws and regulations in the industry.
CBN said the affected institutions were punished for failure to meet the minimum paid-up share capital requirement for the category of the bank licences granted to them by the CBN.
It listed others to include having insufficient assets to meet their liabilities; Being critically undercapitalised with a capital adequacy ratio below the prudential minimum ratio as prescribed by the CBN; and Failure to comply with several directives and obligations imposed upon them by the CBN.
The apex bank said it remains committed to its core mandate of ensuring financial system stability.
