The Fijian Parliament recently introduced the Credit Union Bill 2025, a significant piece of legislation aimed at enhancing the governance and oversight of credit union institutions. Tabled by Finance Minister Professor Biman Prasad, the bill seeks to empower the Reserve Bank of Fiji to supervise and regulate credit unions, which have seen a dramatic decline in numbers, from 400 active unions in 2008 to just 17 by February 2025.
This legislative move is in response to recommendations made by the International Monetary Fund’s Financial Sector Assessment Program back in 2006, highlighting the need for a strong regulatory framework to address the challenges faced by credit unions. The bill aims to strengthen governance practices, implement risk management frameworks, and enhance member services, ultimately safeguarding the interests of members and promoting financial stability across Fiji.
Minister Prasad noted that since 2018, while the asset size of the credit unions had only relatively increased from $173 million to $200 million as of September 2021, the declining number of active credit unions emphasizes the need for regulatory intervention. By formalizing the Credit Union Bill, the government aims to create a comprehensive structure that will not only stabilize but also rejuvenate the credit union sector.
Opposition MP Premila Kumar praised the government’s effort to fast-track the Bill’s implementation, acknowledging the long-standing necessity for regulating credit unions in Fiji. This sentiment aligns with broader discussions in the financial sector, particularly concerning unlicensed credit providers, which have prompted the need for stricter regulations.
The passing of the Credit Union Bill 2025 signals a commendable step forward in addressing the vulnerabilities present in Fiji’s financial landscape, fostering an environment conducive for credit unions to thrive while ensuring consumer protection and financial inclusivity. This initiative holds the promise of rejuvenating the credit union sector, potentially leading to enhanced support for community-driven financial services across Fiji.
Leave a comment