Petaia Tuimanu, the Acting Deputy Governor of the Reserve Bank, has stated that Fiji’s financial system is proving resilient despite the substantial global economic challenges that could threaten confidence and increase traditional banking risks.
The recently released Financial Stability Review for 2024 assesses the current state and risks to financial stability within the Fijian financial sector. Tuimanu highlighted that the ongoing low-interest rate environment is fostering credit growth in the economy by alleviating debt servicing costs, which encourages demand for credit and drives economic activity.
As of June 30, 2024, total credit has risen by 9.3 percent to $11.8 billion, with expectations for further growth in light of a positive economic outlook for 2024. Consequently, monitoring and managing credit risk will be a crucial area of focus moving forward.
The Reserve Bank of Fiji will continue to closely observe the performance of banks and other supervised entities, and will implement necessary measures to ensure the safety and stability of the financial system as required.
Additionally, this year’s Financial Stability Report delves into the effects of digital transformation on Fiji’s financial landscape. With notable changes in the payment system, the Reserve Bank plans to track developments in this area in collaboration with key stakeholders.