The operating licences of Aso Savings and Loans Plc and the Union Homes Savings and Loans Plc have been revoked, according to the Central Bank of Nigeria (CBN).
The move, the apex bank said, is part of efforts to strengthen the mortgage sub-sector and enforce 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 CBN announced in a statement on Wednesday.
The regulator cited failure to meet minimum paid-up share capital requirements, insufficient assets to meet liabilities, and critically low capital adequacy ratios as reasons for the revocation.
The affected institutions had also failed to comply with several CBN directives and obligations, prompting the regulator to take action.
“The affected institutions had violated various Sections of BOFIA 2020 and the Revised Guidelines for Mortgage Banks in Nigeria,” the statement added.
The CBN reaffirmed its commitment to ensuring financial system stability, emphasizing its mandate to promote a sound financial system.
This move demonstrates the apex bank’s resolve to enforce regulatory compliance and protect the interests of depositors and stakeholders.
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