CBN REVOKES OPERATIONAL LICENSES OF TWO MORTGAGE BANKS
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In a circular released on Tuesday and signed by Hakama Ali, the Ag. Director of the Corporate Communications Department, the top bank stated that this action is part of its effort to reposition the mortgage sector and encourage a culture of following the right laws and rules.
It cited Section 12 of BOFIA 2020, and Section 7.3 of the Revised Guidelines for Mortgage Banks in Nigeria has revoked the licenses of Aso Savings anc Loans Plc and Union Homes Savings and Loans Plc.
The affected institutions had violated various Sections of BOFIA 2020 and the Revised Guidelines for Mortgage Banks in Nigeria, including:
* Failure to meet the minimum paid-up share capital requirement for the category of the bank licence granted to them by the CBN.
* Having insufficient assets to meet their liabilities;
* Being critically undercapitalised with a capital adequacy ratio below the prudential minimum ratio as prescribed by the CBN; and
* Failure to comply with several directives and obligations imposed upon them by the CBN.
‘The CBN remains committed to its core mandate of ensuring financial system stability’ the circular added
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