The Fiji Police Credit Union has urged Parliament’s Standing Committee on Economic Affairs to seek greater clarity in the ongoing review of the Credit Union Act of 1954. While backing efforts to modernize credit union operations, the FPCU is calling for precise governance and legal terms in the draft bill.
Manager Luke Narera said the FPCU supports the modernization aims, including the use of new technology to boost efficiency and the prospect of more flexibility in setting interest rates. However, he noted that the submission raises questions about key areas such as membership provisions, AGM outcomes, and day-to-day operations. He emphasised that in some years there has been a perceived dilution of the board’s power and an increase in authority for the Reserve Bank of Fiji, a shift the FPCU wants carefully considered to avoid weakening board-level decision-making.
Standing Committee on Economic Affairs Deputy Chair Premila Kumar responded by stressing that the RBF exists to protect members. She highlighted past incidents where some credit unions manipulated systems and siphoned members’ funds, underscoring the need for safeguards. The Fiji Police Credit Union’s stance is a call for a thorough review that results in stronger and more supportive provisions for credit unions.
The broader policy environment already contemplates reform of Fiji’s credit union regime. The proposed Credit Union Bill 2025 would expand the Reserve Bank of Fiji’s role as regulator and registrar, with aims to modernize governance, enhance risk management, and strengthen consumer protections while balancing the regulatory burden. Proponents argue that clear justification and broad consultation around audit provisions and any new supervisory fees are essential to ensure that reforms bolster oversight without imposing undue costs on members. The reform package is also seen as part of wider efforts to restore public trust and align local standards with international practices.
What this means for stakeholders
– A clearer governance framework and defined committee authorities could reduce ambiguity and improve accountability.
– Expanded regulatory oversight by the RBF is intended to bolster stability and protect savers, but must be balanced to avoid overreach.
– Education, capacity building, and digital transformation provisions could enhance service delivery and financial inclusion for members.
In summary, the FPCU’s call for clarity reflects a common thread in the sector’s reform dialogue: modernizing the legal framework while preserving the cooperative ethos and ensuring robust protections for members. If consultations are broad and provisions are well justified, the reforms could strengthen governance, foster trust, and support sustainable growth across Fiji’s credit union movement.
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