CBN Revokes Licences Of Aso Savings, Union Homes

CBN Revokes Licences Of Aso Savings, Union Homes Over Regulatory Breaches.
The banks were cited for regulatory breaches and financial distress.
Action was taken under BOFIA 2020 and mortgage bank guidelines.

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

The decision was announced in a statement issued on Tuesday and signed by the Acting Director of Corporate Communications at the CBN, Hakama Sidi Ali.

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EKO HOT BLOG reports that the apex bank said the licences of the two primary mortgage banks were withdrawn due to multiple regulatory violations and persistent financial distress.

According to the CBN, the action forms part of ongoing efforts to reposition the mortgage banking subsector and strengthen compliance with applicable laws and regulatory standards.

The regulator explained that the revocation was carried out in line with the provisions of Section 12 of the Banks and Other Financial Institutions Act 2020 and Section 7.3 of the Revised Guidelines for Mortgage Banks in Nigeria.

Investigations revealed that both institutions failed to meet the minimum paid up share capital requirement for their licence category and had insufficient assets to cover their liabilities.

The banks were also found to be critically undercapitalised, with capital adequacy ratios falling below the prudential minimum prescribed by the CBN.

In addition, the institutions were cited for repeated non compliance with regulatory directives and other obligations imposed by the apex bank.

The CBN further noted that Aso Savings and Union Homes had faced longstanding operational challenges, including complaints from depositors and allegations of weak corporate governance structures.

Both mortgage banks were delisted from the Nigerian Exchange in 2024 after failing to submit audited financial statements for more than six years.