Barely days after revoking the operating licence of Skye Bank Plc on Friday evening, the management of Central Bank of Nigeria (CBN), on Wednesday hammered a total of 182 mortgage banks, finance houses and microfinance banks across the country.
According to the list published on the apex bank’s website, the regulatory action was taken because the banks had closed shop, were insolvent, terminally distressed, or in voluntary liquidation.
Licences of primary mortgage banks like Lagos-based Accord Savings & Loans Limited and Amex Savings & Loans had their licences revoked after their failed recapitalization exercises.
While a total of 154 MFBs were affected by the revocation, six PMIs and 22 finance houses fell under the regulatory hammer.
A further breakdown of the list shows that three PMIs closed shop (including Anambra State Government owned Ahocol Savings & Loans Limited; two failed recapitalization (both Lagos based); while Bayelsa State Government owned Trans Atlantic Savings & Loans Limited, became insolvent.
Of the 22 finance companies, 19 are based in Lagos, including Cornerstone Leasing & Investment Ltd; as well as one in each of Cross River, Abuja and Rivers State.
Concerning the status of the companies, eight sought voluntary liquidation; 13 failed to recapitalise; and one (Equator Capital Asset Management Ltd) became insolvent.
A total of 62 MFBs closed shop; 74 became insolvent; 12 were terminally distressed; and six, engaged in voluntary liquidation.
Lagos also recorded the highest number of MFBs whose licences were revoked by the CBN; followed by Abuja with 12; while Delta recorded eight; Anambra, six, and Ogun, five; among others.
According to CBN guidelines, minimum capitalization for unit MFBs (one shop) is N20m; while N100m is for state-wide operations; and N2bn for national license.
To operate as PMIs in Nigeria presented requires N1bn minimum capital base, up from N200m previously; and finance houses, N100m.