The Acting Deputy Governor of the Reserve Bank, Petaia Tuimanu, has indicated that Fiji’s financial system is maintaining its resilience in light of ongoing global economic challenges that could potentially impact confidence and heighten traditional banking risks.
The 2024 Financial Stability Review, published last Friday, evaluates the current state and risks associated with the stability of Fiji’s financial system. Tuimanu noted that the current low-interest rate climate is driving credit growth in the economy by reducing debt servicing costs, encouraging the demand for credit, and ultimately supporting overall economic activity.
As of June 30, 2024, credit has risen by 9.3 percent, reaching $11.8 billion, with further growth anticipated due to a favorable economic outlook for the year. Consequently, managing and monitoring credit risk in the broader financial landscape will be crucial moving forward.
The Reserve Bank will continue to keep a close watch on the performance of banks and other regulated entities, and will implement necessary measures to ensure the safety and integrity of Fiji’s financial system as needed.
Additionally, this year’s Financial Stability Report addresses the effects of digital transformation on the nation’s financial system. Recognizing the substantial changes in Fiji’s payment systems, the Reserve Bank will work closely with key stakeholders to track developments in this area.