Overview
Introduction The financial strength of Nigerian banks, including their average capital adequacy ratios and credit discipline, is critical to the country's financial stability. In recent years, notable events such as the COVID-19 pandemic and the naira devaluation have occasioned major credit risks, necessitating both strict and flexible regulations, as the occasion demands, to manage these risks and ensure restored or continued financial stability. In particular, in the wake of the COVID-19 pandemic, the Central Bank of Nigeria (CBN), initiated a regulatory forbearance period to provide relief to obligors to deal with the attendant financial crises. Specifically, the forbearance involved the reclassification of loan facilities—such as restructuring payment terms or granting payment moratoriums—in ways that prevented their classification as non-performing loans (NPLs) for the relevant period. Request the full insight below.
