CBN revokes licenses of 132 microfinance banks, 3 finance companies and 4 PMBs | See List

by Area Talk

The Central Bank of Nigeria (CBN) has revoked the operating licences of 132 microfinance banks, four primary mortgage banks, and three finance companies in the country.

The revocation exercise was disclosed in the official gazette of the Federal Government published on the website of the CBN on Tuesday.

According to the apex bank, the financial institutions “failed to fulfil or comply with the conditions subject to which their licences were granted; or failed to comply with the obligations imposed upon them by the Central Bank of Nigeria in accordance with the provisions of Banks and Other Financial Institutions Act (BOFIA) 2020, Act No. 5.”

The four primary mortgage banks whose licences were revoked are Resort Savings & Loans, Safetrust Mortgage Bank, Adamawa Savings & Loans and Kogi Savings & Loans. The finance companies whose licences were revoked include HHL Invest & Trust Limited, TFS Finance Limited and Treasures & Trust Limited.

Some of the microfinance banks listed include Bluewhales Microfinance Bank, Igangan Microfinance Bank, Mainsail Microfinance Bank, Everest Microfinance Bank, Merit Microfinance Bank, Musharaka Microfinance Bank, Nopov Microfinance Bank, among others.

CBN Governor, Godwin Emefiele, said the licences were revoked in the exercise of the powers conferred on the apex bank under Section 12 of BOFIA 2020, Act No. 5.

BOFIA (section 12) has in its provisions granted the CBN the power to revoke licenses for

  • Failure to comply with the conditions subject to which the license is granted (ie Rendering returns etc)
  • Ceasing to carry out authorised business for a continuous period of 6months or an aggregate of 6months (within a 12 month period)
  • having insufficient assets to meet liabilities
  • being critically undercapitalized (failing to maintain prescribed minimum capital or failing to maintain minimum regulatory ratios eg CAR)
  • fails to comply with obligation imposed by the CBN
  • conducting business in an unsound manner
  • being involved in a situation/action or inaction that constitutes a threat to the overall financial stability

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