The Central Bank of Nigeria has withdrawn the operating licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc in a move aimed at reinforcing the mortgage sector and ensuring strict adherence to banking regulations.
In a statement posted on Tuesday on the apex bank’s X handle by the Acting Director of Corporate Communications, Mrs Hakama Ali, the CBN explained that the affected firms breached multiple provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020 as well as the Revised Guidelines for Mortgage Banks in Nigeria.
The regulator noted that the action forms part of its broader efforts to safeguard the stability of the banking system, protect depositors, and ensure that only financially healthy institutions are allowed to operate within the mortgage industry.
“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 apex bank said.
The apex bank emphasised that the revocation aligns with its mandate to ensure financial system stability and maintain public confidence in the banking sector.
The Acting Director of Corporate Communications reaffirmed the bank’s commitment to promoting a sound and resilient financial system in Nigeria.
Mortgage banks are financial institutions that provide home loans and other housing finance products, and they are strictly regulated by the CBN to protect customers and ensure the stability of Nigeria’s financial system.
