ABUJA – The Central Bank of Nigeria (CBN) has revoked the operating licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc.
This was disclosed in a statement by the CBN’s Acting Director, Corporate Communications Department, Mrs Hakama Sidi-Ali.
Sidi-Ali said the action was part of the apex bank’s efforts to reposition the mortgage sub-sector and promote a culture of compliance with relevant laws and regulations.
She said the revocation was carried out in exercise of the powers conferred on the CBN under Section 12 of the Banks and Other Financial Institutions Act (BOFIA) 2020, and Section 7.3 of the Revised Guidelines for Mortgage Banks in Nigeria.
She said the affected institutions violated various provisions of the regulations.
According to her, the violations included failure to meet the minimum paid-up share capital requirement for the category of bank licence granted by the CBN.
“Others include having insufficient assets to meet liabilities and being critically undercapitalised, with capital adequacy ratios below the prudential minimum prescribed by the CBN,” she added.
She said the institutions also failed to comply with several directives and obligations imposed on them by the apex bank.
Sidi-Ali said the CBN remained committed to its core mandate of ensuring financial system stability.
