Fiji’s financial system reported gross assets of $36.2 billion as of June 30, 2024, with commercial banks accounting for 41.0 percent of this total. Following them, the Fiji National Provident Fund (FNPF) comprised 29.8 percent, while the three systemically important banks (SIBs)—ANZ, BSP, and Westpac—collectively made up 27.0 percent.
According to the Reserve Bank of Fiji (RBF) in its October Financial Stability Review, commercial banks continue to dominate lending, representing 78.3 percent of all loans, while non-bank lenders account for the remaining 21.7 percent. The report highlighted that private sector businesses held the largest share of commercial bank loans, at 66.6 percent, followed by households at 27.0 percent and other entities at 6.4 percent.
The majority of loans extended to private sector business entities were allocated to the wholesale, retail, hotels, and restaurants sector, which received 22.3 percent of loans. This was followed by the real estate sector at 19.8 percent and the building and construction sector at 8.7 percent.
As of June 30 this year, the total aggregate credit in Fiji’s financial system stood at $11.8 billion, reflecting an annual increase of $1.0 billion, or 9.3 percent, compared to $0.6 billion, or 6.0 percent, during the same period last year. Commercial banks played a vital role in driving this current credit cycle, experiencing an annual growth of 11.8 percent as of June 30, 2024. This growth was supported by strong liquidity in the financial system, relaxed credit standards, and an increase in loan demand, which helped keep lending rates low and facilitated the growth of private sector credit.
The RBF noted that the commercial banks’ loan pipeline in the upcoming months aligns with key policy priorities aimed at enhancing potential credit growth. By June 30, a total of $2.5 billion in unutilized loan limits was recorded, with $1.2 billion of this amount related to actual loans that had not yet been disbursed or drawn down.