Fiji Credit Union Bill 2025 hailed as timely push for modern governance and capacity building
The chief executive of the Fiji Teachers Union Cooperative Thrift and Credit Limited, Chandra Dutt, has welcomed Credit Union Bill 29 of 2025 as a timely and essential refinement of Fiji’s cooperative framework. While presenting to the Standing Committee on Economic Affairs, Dutt argued that the current 1996 Co-operative Act no longer reflects how modern cooperatives operate as commercial entities and urged updates to distinguish between different types of cooperatives and to clearly define board powers, the roles of subcommittees, and managerial authority.
Dutt stressed that the bill should lay out clear provisions for education, capacity building, and digital transformation within the sector. “We have a lot of subcommittees, finance committee, loans committee, non-securities committee, steering committee all these committees exist, but there is nothing in the Act specifying their roles, responsibilities, or authorities. This needs to be clearly spelled out for us to operate effectively,” he said.
Standing Committee on Economic Affairs Chair Sakiusa Tubuna also weighed in, noting that any governance framework for credit unions must ultimately align with approval processes by the Reserve Bank of Fiji. He highlighted ongoing questions about bylaws to be created under the Act and warned that governance provisions in the Act could be influenced by regulatory oversight. “There are quite a lot of places in the Act where it is also enforced in terms of governance, regulatory imposition of control by the Reserve Bank of Fiji … the formal Credit Union Act was formed in the 1950s. It came with bylaws also. In this case, it has been highlighted by some of our members,” Tubuna commented.
Dutt acknowledged these concerns yet pointed out that the current Act already sets a three-year term for board members. He also noted that because FTUCTCL operates as a multi-million dollar institution, changing leadership midstream could disrupt important ongoing initiatives.
Broader regulatory reform context
The discussion comes amid a wider reform push around Fiji’s credit union sector. Previous reporting has stressed a dramatic contraction in the number of active credit unions, with estimates noting a steep decline from hundreds of unions a decade ago to well under 20 today. Proponents of the Credit Union Bill 2025 argue the legislation would empower the Reserve Bank of Fiji to supervise and regulate credit unions more effectively, underpin governance and risk management practices, and better protect members’ interests. Critics have cautioned that while modernization is needed, governance reforms must avoid overreach that could stifle the cooperative spirit.
Industry perspectives have varied on specific provisions, including audit requirements and potential external auditing arrangements. Some union leaders have urged that any new audit regime be justified, proportionate, and designed in consultation with the sector to ensure it strengthens oversight without creating unnecessary costs for members. The bill is also framed against ongoing reforms in Fiji’s broader financial landscape, including efforts to address unlicensed lenders and to bolster consumer protections and financial inclusion.
Why this matters
For Fiji’s credit unions, the move toward a modern legal framework seeks to restore public trust, clarify governance structures, and support sustainable growth. Clear roles for subcommittees and a fitter governance architecture could improve transparency, risk management, and information-sharing among members. At the same time, aligning regulations with Reserve Bank oversight is intended to create a stable, nationally credible system that protects savers while enabling cooperatives to innovate, educate members, and leverage digital tools.
Additional context and outlook
Observers note that a balanced approach—strengthening governance and accountability while preserving the cooperative ethos—will be essential. As Fiji continues to modernize its financial regulation, the sector could see improved resilience, broader member protections, and renewed capacity to serve communities, particularly in rural areas where cooperatives have historically played a crucial role.
Summary
Credit Union Bill 2025 is at a pivotal stage, with industry leaders calling for clear governance provisions, defined committee authorities, and stronger education and capacity-building measures, all under a regulatory framework that could enhance oversight through the Reserve Bank of Fiji. Supporters argue that the reforms are necessary to modernize a sector that has faced structural challenges, while critics urge careful implementation to avoid unwarranted regulatory burdens. If approached with inclusive consultation and proportional oversight, the bill could help rejuvenate Fiji’s credit unions and strengthen financial inclusion for communities across the country.
What this means for stakeholders
– Credit unions may gain clearer governance rules and committee mandates, reducing ambiguity and improving operational effectiveness.
– The Reserve Bank of Fiji’s expanded regulatory role could enhance stability and consumer protection, but must be balanced to avoid overburdening member institutions.
– Education, capacity building, and digital transformation provisions could unlock greater member engagement and service delivery.
Positive note
With thoughtful design and broad stakeholder input, the Credit Union Bill 2025 holds promise for a more resilient, transparent, and inclusive credit union sector in Fiji, potentially reviving member services and rebuilding public confidence in cooperative finance.
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