THE Reserve Bank of Zimbabwe (RBZ) has expressed concern over credit risk within the microfinance institutions (MFIs) after the sector’s portfolio at risk (PaR) ratio deteriorated from 7,34 percent as at December 31, 2017, to close the first quarter at 9,55 percent. Credit risk refers to the chance of a bank’s loss due to borrowers defaulting on loan repayments or not meeting contractual obligations. In its 2018 first quarter microfinance report, the central bank highlighted that the asset quality for the microfinance sector as reflected by the portfolio at risk (>30 days) (PaR) ratio had deteriorated further in comparison to the international benchmark of five percent. As a result, an increased number of microfinance borrowers had been failing to meet…