The Nigerian Apex Bank has been phasing out Forbearance measures to strengthen financial stability and resilience.
What is CBN Forbearance and How Does It Works?
Recently, the Central Bank of Nigeria (CBN) has been addressing regulatory forbearance measures which was introduced during the COVID-19 pandemic to support the banking sector. The CBN is now phasing out these measures to strengthen financial stability and resilience. In this article, we're going to walk you through everything you need to know about Forbearance, the relationship between Forbearance and Loan, the phasing out processes of Forbearance in Nigeria sector, and the impact on banks after the it's completely phased out. Forbearance Definition and Meaning Forbearance is defined as a temporary agreement between a lender and a borrower where the lender allows the borrower to pause, reduce, or modify loan payments due to financial hardship. It means the borrower must eventually repay the owed amount, with the adjusted terms. It provides financial relief without forgiving the actual debt (outstanding loan). The loan itself remains the same; forbearance is just a relief measure …
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