The Central Bank of Nigeria (CBN) has withdrawn the operating licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc, citing persistent violations of banking regulations and prudential standards.
In a statement issued by the Acting Director of Corporate Communications, Mrs. Hakama Sidi Ali, the apex bank said the decision was taken in line with 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.
The CBN explained that the action forms part of broader efforts to reposition the mortgage banking sub-sector, strengthen regulatory compliance, and safeguard financial system stability.
According to the regulator, both mortgage banks failed to meet the minimum paid-up share capital required for their licence category and did not have sufficient assets to cover their liabilities. The institutions were also found to be critically undercapitalised, with capital adequacy ratios falling below the prudential minimum set by the CBN.
In addition, the apex bank cited repeated non-compliance with regulatory directives and other supervisory requirements as key factors behind the revocation.
The CBN stressed that the move underscores its resolve to enforce compliance with applicable laws and regulations and to maintain a safe, sound, and resilient financial system.
Credit: https://thefintechinsights
