According to a post by the Acting Director of Corporate Communications, CBN, Mrs. Hakama Ali, on the apex bank’s X handle on Tuesday, the CBN said the affected institutions violated several provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020 and the Revised Guidelines for Mortgage Banks in Nigeria.
The revocation is part of the CBN’s ongoing efforts to maintain a safe and reliable banking sector, protect customers’ deposits, and ensure that only financially sound institutions operate in the mortgage market.
“The breaches included failure to meet the minimum paid-up share capital requirement, insufficient assets to meet liabilities, being critically undercapitalised with a capital adequacy ratio below the prudential minimum, and non-compliance with directives issued by the CBN,” the apex bank said.
The apex bank emphasised that the revocation aligns with its mandate to ensure financial system stability and maintain public confidence in the banking sector.
The Acting Director of Corporate Communications reaffirmed the bank’s commitment to promoting a sound and resilient financial system in Nigeria.
Mortgage banks are financial institutions that provide home loans and other housing finance products, and they are strictly regulated by the CBN to protect customers and ensure the stability of Nigeria’s financial system.
NAN
