The Acting Deputy Governor of the Reserve Bank, Petaia Tuimanu, has stated that Fiji’s financial system is showing resilience in the face of significant global economic challenges that could threaten confidence and heighten traditional banking risks.
The recently released Financial Stability Review for 2024 offers an evaluation of the Fijian financial system’s current status and potential risks to its stability. According to Tuimanu, the ongoing low-interest rate scenario is fostering credit growth in the economy by reducing debt servicing costs, thus stimulating demand for credit and supporting economic activity.
As of June 30, 2024, credit has risen by 9.3 percent to reach $11.8 billion, with expectations for further growth anticipated due to a favorable economic outlook for the upcoming year. Consequently, effective monitoring and management of credit risk across the financial sector will be a key focus moving forward.
The Reserve Bank of Fiji will maintain close scrutiny of bank performances and other regulated entities, and will take necessary measures to ensure the safety and integrity of Fiji’s financial system as needed.
This year’s Financial Stability Report also addresses the effects of digital transformation on the Fijian financial environment. With significant changes occurring within the payment system landscape in Fiji, the Reserve Bank will actively track these developments in collaboration with relevant stakeholders.