The Central Bank of Nigeria (CBN) has sacked Aso Savings and Loans Plc and Union Homes Savings and Loans Plc through revocation of their operational licenses.
In a statement, the acting Director, Corporate Communications department of the apex Bank,
Hakama Sidi Ali said that the action is part of the efforts of the CBN to re-position the mortgage sub-sector and promote a culture of
compliance with relevant laws and regulations.
The statement said that the CBN, 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, revoked the licenses of Aso Savings and
Loans Plc and Union Homes Savings and Loans Plc.
“The affected institutions had violated various Sections of BOFIA 2020 and the Revised
Guidelines for Mortgage Banks in Nigeria, including:
(a) Failure to meet the minimum paid-up share capital requirement for the category
of the bank licence granted to them by the CBN.
(b) Having insufficient assets to meet their liabilities;
(c) Being critically undercapitalised with a capital adequacy ratio below the
prudential minimum ratio as prescribed by the CBN; and
(d) 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.”
