The Central Bank of Nigeria (CBN) has officially cancelled the operational licenses of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc.
This move is part of a broader crackdown to sanitize the mortgage industry and ensure all financial institutions strictly follow banking laws.
According to Mrs. Hakama Ali, the CBN’s Acting Director of Corporate Communications, the two firms were found guilty of violating the Banks and Other Financial Institutions Act (BOFIA) 2020.
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The apex bank noted that these institutions had failed to meet several critical requirements, including maintaining the minimum share capital and having enough assets to cover their liabilities.
The CBN further revealed that both banks were critically undercapitalized, with their capital adequacy ratios falling far below the legal minimum.
Despite previous warnings and directives from the regulator, the institutions failed to comply, leading to the final decision to shut them down to protect depositors’ money.
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By removing these non-compliant players, the CBN aims to maintain a stable financial system and restore public trust in the mortgage sector.
The bank reaffirmed its commitment to ensuring that only healthy, resilient institutions are allowed to handle housing finance and home loans for Nigerians.
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