The Central Bank of Nigeria has revoked the operational licenses of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc.
According to a post by the Acting Director of Corporate Communications, CBN, Mrs. Hakama Ali, on the apex bank’s X handle on Tuesday, the CBN said the affected institutions violated several provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020 and the Revised Guidelines for Mortgage Banks in Nigeria.
The CBN said the decision is in furtherance of efforts to strengthen the mortgage sub-sector and enforce compliance with banking regulations.
It further described it as part of the CBN’s ongoing efforts to maintain a safe and reliable banking sector, protect customers’ deposits, and ensure that only financially sound institutions operate in the mortgage market.
“The breaches included failure to meet the minimum paid-up share capital requirement, insufficient assets to meet liabilities, being critically undercapitalised with a capital adequacy ratio below the prudential minimum, and non-compliance with directives issued by the CBN,” the CBN stated.
The CBN emphasised that the revocation aligns with its mandate to ensure financial system stability and maintain public confidence in the banking sector.
It reaffirmed its commitment to promoting a sound and resilient financial system in Nigeria.
