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CBN revokes licenses of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc due to regulatory breaches.
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Violations include failure to meet minimum paid-up capital and other financial and operational shortcomings.
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Depositors and stakeholders advised to follow CBN and NDIC announcements for liquidation or resolution updates.
The Central Bank of Nigeria (CBN) has revoked the operational licenses of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc following regulatory violations and evidence of financial distress.
In a statement on Tuesday, Hakama Sidi Ali, Acting Director of Corporate Communications, explained that the action was taken under Section 12 of the Banks and Other Financial Institutions Act (BOFIA), 2020 and Section 7.3 of the Revised Guidelines for Mortgage Banks.
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The apex bank noted that the move forms part of efforts to strengthen the mortgage banking sector and enforce compliance with established regulations. Among the breaches identified, both institutions failed to meet the minimum paid-up share capital required for their license category.
The CBN emphasized its commitment to maintaining financial system stability and advised depositors and other stakeholders to stay updated via the CBN and Nigeria Deposit Insurance Corporation (NDIC) regarding potential liquidation or resolution processes.
With the revocation, Aso Savings and Union Homes Plc can no longer operate as licensed financial institutions, marking a significant step in the central bank’s regulatory oversight of the mortgage banking sub-sector.
