Business APBN urges CBN to Release Names of Recapitalised Mortgage Banks

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LequteMan

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Mr Bala Ka’Oje, President, Association of Professional Bodies of Nigeria (APBN), on Thursday in an interview with newsmen in Lagos urged the CBN to publish the names of mortgage banks which met the new minimum capital base.

The CBN, had in 2013, commenced the recapitalisation of mortgage banks from the minimum of N200 million to N2.5 billion and N5 billion, respectively.

Mortage banks with N5 billion capital base are classified as national institutions, while those with N2.5 billion base are termed regional operators.

According to him, release of the names of recapitalised mortgage banks has become necessary since the end of exercise.

“This will enable people, especially investors in real estate and housing development projects as well as individuals who need mortgage loans, not to fall into the wrong banks.

“ABPN expects CBN to release the list to enable the public know who to deal with as far as housing provision is concerned,” he said.

The APBN president said that construction experts, real estate consultants and housing developers were waiting for the list to map out their own investment strategies for 2014.

Ka’Oje said that speculation might lead to panic withdrawals by mortgage banks’ customers.

He said the non-release of the list of mortgage banks that successfully concluded the recapitalised programme might lead panic transfer of funds to commercial banks.

Meanwhile, an official of CBN said that the apex bank was being cautious on the list of recapitalised mortgage banks.
 
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