The Acting Deputy Governor of the Reserve Bank, Petaia Tuimanu, has affirmed that Fiji’s financial system remains strong despite significant global economic challenges that could threaten confidence and increase traditional banking risks.
The recently released Financial Stability Review for 2024 evaluates the current state and potential risks to the Fijian financial system’s stability. Tuimanu noted that the ongoing low-interest rate environment is encouraging credit growth within the economy by mitigating debt servicing costs and stimulating demand for credit, thereby promoting economic activity.
As of June 30, 2024, credit has risen by 9.3 percent to reach $11.8 billion, with further growth anticipated due to a favorable economic outlook for the year.
Going forward, the focus will be on monitoring and managing credit risk across the broader financial system. The Reserve Bank of Fiji (RBF) plans to closely observe the performances of banks and other regulated entities and take necessary actions to ensure the safety and stability of the financial system.
This year’s Financial Stability Report also addresses the effects of digital transformation within the Fijian financial sector. Considering the substantial changes in the national payment system landscape, the RBF will continue to collaborate with key stakeholders to monitor developments in this area.