The Central Bank of Nigeria (CBN) has revoked the operational licences of two primary mortgage banks, Aso Savings and Loans Plc and Union Homes Savings and Loans Plc, citing multiple regulatory violations and financial distress. The decision was announced by the CBN’s Acting Director of Corporate Communications and was taken under the Banks and Other Financial Institutions Act (BOFIA) 2020 and the Revised Guidelines for Mortgage Banks in Nigeria. The regulator said the institutions had breached various provisions, including the failure to meet the minimum paid‑up share‑capital requirement for their licence category.
This action forms part of broader efforts to reposition the mortgage sub‑sector and enforce compliance with existing laws and regulations. By revoking the licences, the CBN has effectively barred Aso Savings and Union Homes from operating as licensed financial institutions. The apex bank emphasised its commitment to maintaining financial‑system stability and advised depositors and other stakeholders to watch for further announcements concerning possible liquidation or resolution processes.
The Nigeria Deposit Insurance Corporation (NDIC) is expected to play a role in the resolution. The CBN’s move underscores the regulator’s dedication to enforcing compliance and protecting stakeholders, which is essential for preserving investor confidence and promoting economic growth. As the situation develops, depositors and other interested parties will be closely monitoring how the CBN and NDIC manage the liquidation or resolution of the two mortgage banks.
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