CBN To Shutdown 154 Microfinance Banks, 28 Others

CBN To Shutdown 154 Microfinance Banks, 28 Others

Following their inability to keep up with its standards, the Central Bank of Nigeria (CBN) has reportedly issued a notification to revoke the operating licences of 182 financial institutions in the country.

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The Punch quoted a list issued by the regulator on Wednesday, September 26, as saying that 154 of the affected institutions are microfinance banks; six are primary mortgage banks; while the remaining 22 are finance companies.

The apex bank further added that 62 of the microfinance banks had already closed shop; 74 became insolvent; 12 were terminally distressed; while six voluntarily liquidated.

The CBN listed the primary mortgage banks for revocation as “Accord Savings and Loans Limited in Lagos that failed to recapitalise; and Ahocol Savings and Loans Limited in Anambra (state government-owned) that closed shop.”

“Other mortgage banks for revocation are Trans Atlantic Savings and Loans Limited in Bayelsa (state government-owned) that became insolvent; Royal Savings and Loans Limited in Delta State that also closed shop; Amex Savings and Loans Limited in Lagos that failed to recapitalise; and Supreme Savings and Loans Limited also in Lagos that closed shop.”

It further revealed that eight finance companies voluntary liquidated; 13 failed to recapitalise; while one became insolvent.