Credit risk reduction strategies adopted by rural based informal village banks in Masendu ward Bulilima district (Zimbabwe).

Abstract

Credit risk reduction is one of the most essential activities in any financial institution and cannot be overlooked by a bank’s credit irrespective of its size and services issued. Effective credit risk reduction is a prerequisite for the village banks stability and continuous profitability.as with any financial institution in Zimbabwe, the biggest form of credit risk emanates from money loaned, and failure to retain it from the borrowers. The therefore sought to examine the credit risk reduction strategies adopted by the informal rural village banks of masendu .the study adopted a descriptive survey design ,the research population constituted of 8 village banks. The primary data was collected using questionnaires.