The Central Bank of Nigeria (CBN) has revoked the operating licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc, citing violations of banking regulations and insufficient capitalisation.
The decision, announced on Tuesday, is part of the apex bank’s ongoing efforts to strengthen the mortgage sub-sector and enforce compliance with relevant laws.
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According to the CBN, the affected institutions failed to meet the minimum paid-up capital requirements for their banking licence categories, had assets insufficient to cover liabilities, and were critically under capitalised with capital adequacy ratios below the prudential minimum.
They also failed to comply with several directives issued by the regulator.
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“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; Being critically undercapitalised with a capital adequacy ratio below the prudential minimum ratio as prescribed by the CBN; and Failure to comply with several directives and obligations imposed upon them by the CBN,” the statement signed by the bank’s Spokesperson, Hakama Ali read.
The move comes amid a broader push by the CBN to ensure stability and resilience in Nigeria’s mortgage and housing finance sector.
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In recent years, the apex bank has mandated recapitalisation exercises for mortgage banks to improve liquidity and lending capacity, as well as to protect depositors.
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The revocations shows the need for other institutions in the sector to maintain proper governance, adequate capital, and compliance with regulatory requirements.
The CBN reiterated its commitment to promoting a sound financial system and safeguarding the interests of depositors, stressing that compliance with capital and operational standards is non-negotiable for all financial institutions.
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