Don't Miss


Home   >   Business   >   Industries   >   Banking   >   CBN revokes licences of 21 primary mortgage banks

CBN revokes licences of 21 primary mortgage banks

By on January 2, 2015

The Central Bank of Nigeria (CBN) has revoked the operating licences of 21 Primary Mortgage Banks (PMBS) as well as one microfinance bank and directed the Nigeria Deposit Insurance Corporation (NDIC) to commence the process of orderly winding up of the affairs of the affected institutions.

The revocation was communicated by the CBN via its gazettes dated 14 and 19 November, 14 and 19, 2014.

The NDIC had simultaneously been appointed the provisional liquidator to wind up the affairs of the closed financial institutions, according to a public notice by the corporation, a copy which was made available to THISDAY.

Consequently, the corporation said it would soon make public announcement/publication on the verification and payment of insured deposits for depositors, creditors and shareholders of the affected banks.

Although no reasons were offered for the latest closure, it may not be unconnected with recent efforts by the apex bank to have the mortgage institutions recapitalised.

Under a new guideline, mortgage firms had been categorised into national and state mortgage firms. While the former are allowed to operate in any or all parts of the federation after the payment of a new N5 billion minimum paid up capital, the State PMBs are restricted to only one state if they satisfy payment of N2.5 billion capital requirement.

Several PMBs were believed to be lagging in terms of meeting up with the new capital requirement.

However, among the affected institutions are Alliance and General Mortgage Limited, Benhouse Building Society, Consolidated Estate Building Society, Cymon Savings and Loans, Euro-Banc Savings and Loans, First Amalgamated Building Society, First Capital Savings and Loans, Global Building Society as well as Harvard Trust Savings and Loans.

Others are Home Foundation Savings and Loans, Home foundation Savings and Loans, Jubilee Building Society, Lagoon Homes Savings and Loans, Leverage Home Savings and Loans, Mid Land Mortgages, Mortgage PHB, MultiBlanc Savings and Loans and Mustard Seed Mortgage.

Others include Omega Savings and Loans, Password Savings and Loans, Post Service Savings and Loans, TMC Savings and Loans and Crystal Edge Microfinance Bank.

 

[ThisDay]