- A total of 51 primary mortgage banks (PMBs) failed to meet up with the recapitalisation stipulated by the Central Bank of Nigeria (CBN) as at December 31, 2014.
- The report further noted that the CBN granted provisional approval to 10 others which had not fully recapitalised to continue to operate pending their recapitalisation. If they eventually meet up with the requirements, it would bring the total number of PMBs licensed to operate in the country to 42.
“The CBN had in August 2011 introduced a new capital requirement of N5 billion for national PMBs and N2.5 billion for state PMBs. The deadline of 31st December, 2012 was given for compliance with the new capital requirements. However, due to the inability of many PMBs to meet up with the date, the deadline was extended to 30th June, 2014. As at 31st December, 2014, 22 PMBs had met the capital requirement of N2.5 billion to operate as State PMBs, while 10 PMBs met the requirement of N5 billion to operate as a national PMB.
- Also, the CBN had granted provisional approval to 10 PMBs that were yet to fully recapitalise to continue to operate pending full recapitalisation. The CBN had directed the PMBs that failed to meet the recapitalisation deadline to merge or convert to finance companies or MFBs. It is instructive to note that 51 out of the 83 PMBs failed to meet the recapitalisation requirements,the report stated.