The Central Bank of Nigeria (CBN) has revoked the operating licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc over violations of banking regulations.
The CBN said in a statement on Tuesday that the measure is a part of initiatives to promote adherence to pertinent laws and regulations and reposition the mortgage subsector.
Join our WhatsApp community
“The Central Bank of Nigeria, 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 has revoked the licenses of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc,” the apex bank said.
“The affected institutions had violated various 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.”
According to the regulator, the financial institutions’ capital adequacy ratio is below the recommended prudential minimum, indicating that they are severely undercapitalised.
The statement stated that another reason for the revocation was the failure to comply with several directives and obligations imposed upon them by the apex bank.
Join our WhatsApp community
The CBN reiterated its dedication to upholding the stability of the financial system, which is its primary responsibility.
Join Our Social Media Channels:
