Honestly, when I first heard about Zenith Bank needing CBN regulatory forbearance, I thought maybe they messed up, but it’s not that simple. Sometimes banks get put under regulatory forbearance by the CBN because they face big challenges, like crazy changes in the economy or the naira losing value. For Zenith Bank, and even other banks like First Bank, part of the issue came from foreign currency loans. When the naira dropped in 2023 and 2024, any bank that borrowed in dollars (or lent to companies that did) suddenly had a much bigger problem. Even if they played it smart, stuff outside their control just hit them hard.

In my opinion, it’s not always the bank being irresponsible. With Zenith Bank, they probably just needed more time to balance their books after all the currency drama. CBN steps in with forbearance to give them that time instead of forcing them to do something drastic, like start selling off good assets or stop giving out loans. That way, the bank, their customers, and even the economy get a chance to recover. So honestly, it’s a mix of tough luck and smart fixes, not just the bank messing up.