FINANCIAL services group CBZ Holdings says it has managed to insulate its lending business from sectoral shocks by diversifying loans across several sectors and spreading risk.
By diversifying their loan portfolios, banks tend to reduce their exposure to specific sectors, which can help them avoid losses during economic downturns or other unexpected events.
The Zimbabwe Stock Exchange-listed concern — once biased towards agriculture — has steadily spread and upped its lending activities to other sectors of mining and manufacturing in recent years while maintaining prudent credit risk management.