The Central Bank of Nigeria (CBN) has revoked the operating licenses of two mortgage lenders, Aso Savings and Loans Plc and Union Homes Savings and Loans Plc, over violations of capital and prudential requirements.
The decision was announced in a circular issued on Tuesday and signed by the Acting Director of the Corporate Communications Department, Hakama Ali.
According to the apex bank, the action forms part of wider efforts to reposition Nigeria’s mortgage sub-sector and enforce strict compliance with applicable laws and regulations.
The CBN said the revocation was carried out in line with 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, which empower the regulator to withdraw licenses where institutions fail to meet regulatory standards.
Explaining the reasons for the action, the apex bank stated, “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 license granted to them by the CBN and having insufficient assets to meet their liabilities.”
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 added.
No comments:
Post a Comment