‎CBN Revokes Licences Of Aso Savings, Union Homes To Strengthen Mortgage Sub-Sector ‎

The Central Bank of Nigeria, CBN, has revoked the operating licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc as part of efforts to reposition the mortgage banking sub-sector and enforce regulatory compliance.
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A statement by the Acting Director Corporate Communications Department of the Central Bank of Nigeria, Mrs Hakama Sidi Ali, notes that the revocation followed persistent violations of extant laws and regulatory guidelines governing the operations of mortgage banks in Nigeria.
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‎The CBN explained that the action was taken pursuant to the powers conferred on it by Section 12 of the Banks and Other Financial Institutions Act ,BOFIA, 2020, as well as Section 7.3 of the Revised Guidelines for Mortgage Banks in Nigeria.
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‎It stated that the affected institutions breached several provisions of BOFIA 2020 and the revised guidelines, thereby undermining prudential standards expected of licensed mortgage banks.
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‎The violations, according to the regulator, include failure to meet the minimum paid-up share capital requirement for their licensed category, inadequate assets to cover liabilities, and critical undercapitalisation, with capital adequacy ratios falling below the prudential minimum prescribed by the CBN.
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‎Other infractions cited include the failure of the institutions to comply with several regulatory directives and obligations issued by the apex bank over time.
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‎The CBN reaffirmed its commitment to its core mandate of safeguarding financial system stability and assured stakeholders that it would continue to take decisive actions to strengthen confidence in Nigeria’s financial sector.
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‎PR/Umbwanko Baba