Fiji’s financial system reported total gross assets of $36.2 billion as of June 30, 2024, with commercial banks holding the largest share at 41.0 percent. The Fiji National Provident Fund (FNPF) follows closely with a share of 29.8 percent, while the three systemically important banks (SIBs)—ANZ, BSP, and Westpac—together account for 27.0 percent.
According to the Reserve Bank of Fiji (RBF) in its October Financial Stability Review, commercial banks dominate the lending landscape, making up 78.3 percent of total loans, compared to 21.7 percent from non-bank lenders. Private sector business entities received the largest portion of commercial bank loans, totaling 66.6 percent, with households at 27.0 percent and other sectors contributing 6.4 percent.
The report highlighted that a significant portion of loans to private sector entities was directed towards wholesale, retail, hotels, and restaurants at 22.3 percent, followed by real estate at 19.8 percent, and building and construction at 8.7 percent.
The aggregate credit for Fiji’s financial system stood at $11.8 billion as of June 30 this year, reflecting an annual increase of $1.0 billion (9.3 percent), compared to a $0.6 billion (6.0 percent) rise during the same timeframe last year.
The RBF indicated that commercial banks remain the primary contributors to the ongoing credit expansion, achieving an annual growth rate of 11.8 percent as of June 30, 2024. This growth is supported by strong liquidity in the financial system, relaxed credit standards, and a positive demand for loans, which has helped maintain low lending rates and foster private sector credit growth.
Additionally, the RBF pointed out that as of June 30 this year, there was a total of $2.5 billion in unutilized loan and advance limits, with $1.2 billion pertaining to loans that had not yet been disbursed.