The Central Bank of Nigeria (CBN) has revoked the operational licenses of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc as part of efforts to re-position the mortgage sub-sector and promote compliance with laws and regulations.
The action was taken in exercise of powers conferred on the CBN under Section 12 of BOFIA 2020 and Section 7.3 of the Revised Guidelines for Mortgage Banks in Nigeria.
According to the regulator, the affected institutions violated several provisions of BOFIA 2020 and the Revised Guidelines for Mortgage Banks in Nigeria. These include failure to meet the minimum paid-up share capital requirement for the category of bank licence granted to them by the CBN.
The banks were also found to have insufficient assets to meet their liabilities, while being critically undercapitalised with a capital adequacy ratio below the prudential minimum ratio prescribed by the CBN.
In addition, the institutions failed to comply with several directives and obligations imposed on them by the CBN over time in the sector nationwide.
The apex bank said the decision aligns with its mandate, stating that it “remains committed to ensuring financial system stability.”
