Mining and Quarrying:
This sector is a very tricky sector especially mining. Demand for products from quarrying is high in the building and construction sector. Both mining and quarrying need heavy investment in heavy machinery. Approval of facilities should be very restrictive after the most careful scrutiny of the financial strength, experience and the reputation of the applicant and their relationship with CIB as well.
Trade and commerce:
The bulk of our bank customers are likely to be traders. Demand for credit is therefore likely to be high especially from wholesalers who have a high turnover. Therefore 90% of funds available to this sector should be specifically as allocated to wholesalers who are more reliable while 10% is reserved for retailers on a very selective basis.
Building and Construction:
This sector is growing but approval of these facilities should be very restrictive, as investment in this sector takes long to repay.
Manufacturing/Industry:
Emphasis should be put on financing raw materials and spare parts for our prime customers. This sector is a high-risk area where CIB should approve loans on a most restrictive basis after most careful scrutiny about the financial strength experience and the reputation of the applicant and their relationship with CIB as well.
Agricultural loans:
This is a very unstable sector, subject to several adverse factors namely:
Unpredictable weather or diseases epidemics;
Fluctuating prices in commodities;
aging government policies;
Customers are unsophisticated in financial matters; and
Highly specialised field.
Approval of facilities should be very restrictive.
