The Central Bank of Nigeria (CBN) has revoked the operating licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc.

This is according to a statement by CBN’s Acting Director, Corporate Communications Department, Hakama Sidi-Al.

Sidi-Ali said the action was part of the apex bank’s efforts to re-position the mortgage sub-sector and promote a culture of compliance with relevant laws and regulations.

She said the revocation was in exercise of the powers conferred on the CBN under Section 12 of BOFIA 2020, and Section 7.3 of the Revised Guidelines for Mortgage Banks in Nigeria.

She said that the affected institutions had violated various sections of both regulations.

According to her, such violations include failure to meet the minimum paid-up share capital requirement for the category of the bank licence granted to them by the CBN.

“Others are, having insufficient assets to meet their liabilities and being critically undercapitalised with a capital adequacy ratio below the prudential minimum ratio as prescribed by the CBN,” she added..

She said that they also failed to comply with several directives and obligations imposed upon them by the CBN.

She said that the CBN remained committed to its core mandate of ensuring financial system stability.