CBN Revokes Licences of Aso Savings And Union Homes

CBN, Central Bank of Nigeria (CBN), has revoked the operating licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc.

In a statement, the CBN said the action is part of efforts to reposition the mortgage sub-sector and promote 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 apex bank said.

“The affected institutions had violated various Sections of BOFIA 2020 and the Revised Guidelines for Mortgage Banks in Nigeria, including failure to meet the minimum paid-up share capital requirement for the category of the bank licence granted to them by the CBN, having insufficient assets to meet their liabilities.”

The regulator said the financial institutions are critically undercapitalised with a capital adequacy ratio below the prudential minimum prescribed.

The statement said another reason for the revocation was the failure to comply with several directives and obligations imposed upon them by the apex bank.

The CBN reaffirmed its commitment to its core mandate of ensuring financial system stability.

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.