Reserve Bank Acting Deputy Governor Petaia Tuimanu stated that Fiji’s financial system is proving resilient despite substantial global economic challenges that may affect confidence and enhance traditional banking risks.
The Financial Stability Review for 2024, published last Friday, assesses the current state and potential risks to the stability of Fiji’s financial system.
Tuimanu mentioned that the ongoing low-interest rate environment is conducive to credit growth, alleviating debt servicing costs, boosting credit demand, and promoting economic activity.
As of June 30, 2024, credit has risen by 9.3 percent, totaling $11.8 billion, and is anticipated to increase further due to a favorable economic forecast for 2024.
In this context, monitoring and managing credit risk within the financial system will be a significant priority moving forward.
The Reserve Bank of Fiji (RBF) will continue to closely oversee the performance of banks and other supervised entities, and if necessary, will take appropriate actions to ensure the safety and integrity of Fiji’s financial system.
Additionally, this year’s Financial Stability Report delves into the effects of digital transformation on Fiji’s financial landscape.
Given the considerable changes occurring in Fiji’s payment systems, the RBF plans to monitor developments actively in collaboration with key stakeholders.