The Central Bank of Nigeria (CBN) has revoked the operational licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc over persistent violations of banking regulations.
The apex bank said in a statement signed by the Acting Director of the Corporate Communications Department, Mrs. Hakama Sidi Ali, that the action was taken 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, as part of efforts to reposition the mortgage sub-sector and strengthen regulatory compliance.
According to the CBN, the affected mortgage banks failed to meet the minimum paid-up share capital requirement applicable to their licence category and had insufficient assets to cover their liabilities.
The regulator also noted that both institutions were critically undercapitalised, with capital adequacy ratios below the prudential minimum prescribed by the CBN.
The apex bank further cited repeated failure by the institutions to comply with regulatory directives and other obligations imposed on them.
The CBN said the revocation underscores its commitment to maintaining financial system stability and enforcing compliance with applicable laws and regulations in the banking sector.
Olusola Akintonde