JUST IN: CBN revokes operating licenses of 2 mortgage banks
The Central Bank of Nigeria (CBN) has revoked the operating licences of two mortgage banks as part of measures to strengthen compliance in the mortgage sub-sector.
The decision was announced in a circular issued on Tuesday and signed by the Acting Director of the Corporate Communications Department, Hakama Ali.
The apex bank said the action was aimed at repositioning the mortgage industry and enforcing adherence to existing laws and regulations.
According to the CBN, the move was taken in line with the powers granted under Section 12 of the Banks and Other Financial Institutions Act (BOFIA) 2020 and Section 7.3 of the Revised Guidelines for Mortgage Banks in Nigeria.
The affected institutions are Aso Savings and Loans Plc and Union Homes Savings and Loans Plc.
Explaining the decision, the CBN 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, and having insufficient assets to meet their liabilities.”
It added that “other violated guidelines include 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 CBN remains committed to its core mandate of ensuring financial system stability,” the circular stated.
