The Central Bank of Nigeria (CBN) has canceled the operational licenses of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc due to violations of regulatory standards.
In a statement released by its spokesperson, Hakama Ali, on Tuesday, the apex bank indicated that the decision is part of efforts to reform the mortgage sector and enhance adherence to existing laws and regulations.
The CBN explained that the revocation was executed under the authority granted 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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The bank reported that the institutions in question did not fulfill essential regulatory requirements, including the minimum paid-up share capital required for their license category.
Additionally, it stated that these banks lacked sufficient assets to meet their liabilities and were significantly undercapitalized, with capital adequacy ratios falling below the minimum standards set by the CBN.
The CBN also highlighted that both institutions failed to adhere to various directives and obligations mandated by the regulator.
“The CBN remains dedicated to its primary goal of ensuring stability in the financial system,” the statement concluded.
