The Central Bank of Nigeria, CBN, has revoked the operating licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc.
CBN’s Acting Director, Corporate Communications Department, Hakama Sidi-Ali disclosed that the action was part of the apex bank’s efforts to re-position the mortgage sub-sector and promote a culture of compliance with relevant laws and regulations.
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She said the revocation was in exercise of the powers conferred on the CBN under Section 12 of BOFIA 2020, and Section 7.3 of the Revised Guidelines for Mortgage Banks in Nigeria.
The apex bank disclosed that the affected institutions violated various sections of both regulations including failure to meet the minimum paid-up share capital requirement for the category of the bank licence granted to them by the CBN.
“Others are, having insufficient assets to meet their liabilities and being critically undercapitalised with a capital adequacy ratio below the prudential minimum ratio as prescribed by the CBN,” said Sidi-Ali.
The two entities also failed to comply with several directives and obligations imposed upon them by the CBN.
NAN.
