The Central Bank of Nigeria CBN has revoked the license of two Mortgage Banks because they violated various Sections of BOFIA 2020 and the Revised Guidelines for Mortgage Banks in Nigeria.
The apex bank stated that its action is part of its efforts to reposition the mortgage subsector “As part of its efforts to re-position the mortgage sub-sector and promote a culture of Compliance with relevant laws and regulations, the Central Bank of Nigeria, 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 has 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 stated that it remains committed to its core mandate of ensuring financial system stability
