The Central Bank of Nigeria (CBN) on Thursday issued a new for the regulatory and supervisory oversight of mortgage guarantee companies (MGCs).
The apex bank stated in the guideline titled ‘Regulations For the Operations of Mortgage Guarantee Companies (MGCs in Nigeria’ that the guideline was issued pursuant to the provisions of the Central Bank of Nigeria (CBN) Act 2007, Banks and Other Financial Institutions Act (BOFIA), other relevant Laws,
The Guideline prescribes the basic requirements for the business of providing mortgage guarantees to mortgage lenders.
It sets the capital requirements for the MGC, including its minimum paid-up capital, maximum leverage limit, and the minimum risk-weighted capital requirement.
It also prescribes permissible investments and liquidity requirements in 5 addition to procedures for the management of the MGC’s risk profile as prescribed by an actuarial report.