The Central Bank of Nigeria has revoked the operational licences of the Aso Savings and Loans PLC and Union Homes Savings and and Loans PLC as part of its efforts to re-position the mortgage sub-sector and promote a culture of compliance with relevant laws and regulations.
The apex bank announced the revocation Tuesday 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.
The affected institutions had violated varicus Sections of BOFIA 2020 and the Revised Guidelines for Mortgage Banks in Nigeria, including:
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; 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 CBN restated commitment to its core mandate of ensuring financial system stability.