The Fiji Development Bank (FDB) is facing calls for an independent review to modernize its operations and better align with national development goals. This recommendation emerged during the review of the bank’s consolidated annual reports for 2022 and 2023, presented by the Standing Committee on Economic Affairs, chaired by Sakiusa Tubuna.
Tubuna pointed out that the last significant operational review of the FDB was conducted back in 2004, creating a pressing need for a reassessment of its strategies, particularly as the bank appears to be prioritizing staff benefits over its core mission of facilitating development financing.
The committee has highlighted the lack of clear performance targets within the bank, which complicates the evaluation of its effectiveness. They believe that a thorough review could enhance FDB’s services and better support the government’s economic development agenda.
Past discussions have also raised concerns about the bank’s high operational costs and declining market share, suggesting that it needs to become more competitive to retain its relevance and effectiveness in the financial sector. Although FDB reported a profit of $5.5 million for 2024, an increase from $3.78 million in 2023, there are still challenges with non-performing loans and operational efficiencies that require addressing.
Engagements with stakeholders, including loan recipients, have been conducted to gather insights and feedback that can inform future enhancements to the bank’s operations. As FDB seeks to navigate these challenges and improve its lending conditions, a successful independent review could foster a more resilient economic environment, strengthen partnerships with local businesses, and ensure that the bank effectively contributes to community development.
This initiative is seen as a hopeful opportunity for the FDB to not only enhance its operational framework but to reaffirm its commitment to fostering economic growth and stability in Fiji.
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