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Banks (Finance)

Zenith Bank, Access Bank, and FCMB Group Align with CBN's Regulatory Forbearance Policy

Strategic Insights

— 2 min read

In a bid to demonstrate their compliance with the Central Bank of Nigeria's (CBN) regulatory forbearance policy, Zenith Bank Plc, Access Bank Plc, and FCMB Group have provided updates on their progress in meeting the requirements tied to their forbearance status. The CBN, in a circular dated 13 June, had barred banks under regulatory forbearance from paying dividends, awarding bonuses to senior executives, or investing in foreign subsidiaries. The policy is aimed at improving capital buffers and promoting internal capital generation within the banking sector.

Zenith Bank has assured shareholders that it will exit the regulatory forbearance regime by 30 June, having taken "appropriate and comprehensive steps" to meet all regulatory requirements. The bank has also stated that it has surpassed the new minimum capital requirement of N500 billion and is well positioned to continue delivering value to all stakeholders. Access Bank, in a corporate filing dated 18 June, confirmed that it is "on track" to fully meet all forbearance-related conditions by 30 June and is currently compliant with the Single Obligor Limit (SOL). FCMB Group, on the other hand, has disclosed making "significant progress" in resolving legacy credit exposures, with a key obligor currently under SOL forbearance expected to be brought within limit by 30 September 2025.

Key Takeaways:

  • Zenith Bank will exit the CBN's regulatory forbearance regime by 30 June.
  • The bank has taken steps to meet regulatory requirements, including full provisioning for affected credit facilities.
  • Access Bank confirmed that it is "on track" to fully meet all forbearance-related conditions by 30 June.
  • The bank is currently compliant with the Single Obligor Limit (SOL) requirement.
  • FCMB Group has made significant progress in resolving legacy credit exposures, with a key obligor expected to be brought within limit by 30 September 2025.
  • The CBN's regulatory forbearance policy is aimed at improving capital buffers and promoting internal capital generation within the banking sector.

Statistics:

  • N500 billion: The new minimum capital requirement for banks.
  • 30 June: The deadline for Zenith Bank to exit the regulatory forbearance regime.
  • 23 per cent, 14 per cent, and 4 per cent: The percentage of gross loan books at risk for Zenith Bank, FirstBank, and Access Bank, respectively, as identified by Renaissance Capital in a research note on 17 June.
  • 13 June: The date of the CBN's circular barring banks under regulatory forbearance from paying dividends, awarding bonuses, or investing in foreign subsidiaries.
  • 18 June: The date of Access Bank's corporate filing confirming its compliance with the Single Obligor Limit (SOL) requirement.
  • 30 September 2025: The deadline for FCMB Group to bring a key obligor currently under SOL forbearance within limit.

Sources:

  • "Zenith Bank moves to avert CBN's sanction ahead of regulatory forbearance deadline" by Premium Times.
  • "CBN Circular Bars Banks under Regulatory Forbearance from Paying Dividends" by CBN.
  • "FCMB Group Discloses Significant Progress in Resolving Legacy Credit Exposures" by Premium Times.
  • "Renaissance Capital Research Note on Regulatory Forbearance" by Renaissance Capital.

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