The Central Bank of Nigeria has revoked the operating licences of two mortgage banks, Aso Savings and Loans Plc and Union Homes Savings and Loans Plc, over recurring regulatory violations and prolonged financial distress.
The apex bank, in a press release on Tuesday, said the revocation was in tandem 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.
The CBN said the action came as “part of its efforts to reposition the mortgage sub-sector and promote a culture of compliance with relevant laws and regulations.”
It noted that both institutions failed to meet critical prudential standards, including the minimum paid-up share capital required for their licence category.
The apex bank further revealed that the affected banks had insufficient assets to cover their liabilities and were critically undercapitalised, with capital adequacy ratios falling below the regulatory minimum, adding they also failed to comply with several supervisory directives and regulatory obligations issued by the apex bank.
“The CBN remains committed to its core mandate of ensuring financial system stability,” the statement stated.
The apex bank’s decision came a year after the two institutions were delisted from the Nigerian Exchange (NGX) in 2024 over failure to submit audited financial statements for year six, raising concerns about their financial health and transparency.
