Manufactured Housing News

Credit Union’s Portfolio Diversification: Why You Need It and How You Can Achieve It

Friday, 25 September 2020

Tags: loan portfolio, Credit union, Credit Union Information

For financial institutions like banks and credit unions, loans are a primary source of revenue as well as risk. One way to manage credit risk effectively is to implement different diversification strategies. Besides reducing the risk inherent in loan portfolios, diversification allows financial institutions to lower the risk of their overall activities and maximize returns. 

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