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CBN Axes Licenses of Two Mortgage Banks for Financial Mismanagement
The Central Bank of Nigeria (CBN) just pulled the plug on two mortgage banks, axing their licences over flat-out financial mismanagement. We’re talking Aso Savings and Loans Plc and Union Homes Savings and Loans Plc, they’re no longer licensed primary mortgage banks, period.
CBN dropped the news in a Tuesday statement, saying it all boiled down to constant rule-breaking and their money troubles snowballing out of control. This lines up perfectly with the Banks and Other Financial Institutions Act (BOFIA) 2020 and the fresh guidelines for mortgage banks in Nigeria.
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At the heart of it, CBN axes licences of two mortgage banks because they fell short on key stuff, like the minimum paid-up share capital for their level. Their assets couldn’t even cover liabilities, capital adequacy was way under the prudential bar, and they straight-up ignored regulatory orders over and over.
Hakama Sidi Ali, Acting Director of Corporate Communications at the CBN, signed off on the statement, stressing how this fits into their bigger push to toughen up the mortgage banking world and safeguard Nigeria’s financial setup.
Both Aso Savings and Loans and Union Homes Savings and Loans have been stumbling along with deep-rooted problems, from dodgy corporate governance to loads of customer complaints piling up. And get this, they got booted from the Nigerian Exchange in 2024 after skipping audited financial statements for more than six years.
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With the revocation kicking in right away, these two mortgage banks’ licences axed for financial mismanagement means no more banking ops for them. CBN axes licences for financial mismanagement to draw a line in the sand.
Depositors and everyone else connected should sit tight for updates from the Nigeria Deposit Insurance Corporation on how they’ll handle any payouts or shutdowns.
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