The Central Bank of Nigeria (CBN) has revoked the licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc.
This was contained in a statement signed by the spokesperson of the Apex bank, Mrs. Hakama Sidi Ali
Sidi Ali said the CBN had to take the action following the failure of the financial institutions to meet their obligations thereby violating the operational guidelines of the subsector.
“As part of its efforts to re-position the mortgage sub-sector and promote a culture of compliance with relevant laws and regulations, 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 affected institutions had violated various Sections of BOFIA 2020 and the Revised Guidelines for Mortgage Banks in Nigeria, including:
(a) Failure to meet the minimum paid-up share capital requirement for the category
of the bank licence granted to them by the CBN.
(b) Having insufficient assets to meet their liabilities;
(c) Being critically undercapitalised with a capital adequacy ratio below the
prudential minimum ratio as prescribed by the CBN; and
(d) Failure to comply with several directives and obligations imposed on them by the CBN,” Ali stated.
