Reserve Bank Acting Deputy Governor Petaia Tuimanu has stated that Fiji’s financial system is maintaining resilience in the face of considerable global economic challenges that could impact confidence and heighten traditional banking risks.
The Financial Stability Review for 2024, which was released last Friday, evaluates the current state and risks affecting the stability of the Fijian financial system.
Tuimanu indicated that the ongoing low-interest rate environment is encouraging credit growth in the economy. This situation aids in offsetting debt servicing costs, boosts demand for credit, and enhances overall economic activity.
As of June 30, 2024, credit increased by 9.3 percent, reaching $11.8 billion, with expectations for further growth due to a positive economic outlook for the year ahead.
Consequently, the monitoring and management of credit risk within the broader financial system will become a key focus in the future. The Reserve Bank of Fiji (RBF) plans to closely observe the performance of banks and other supervised entities and will take necessary measures to ensure the safety and stability of the financial system.
Additionally, this year’s Financial Stability Report addresses the effects of digital transformation on Fiji’s financial landscape. Given the substantial changes in the country’s payment system, the RBF will continue to monitor developments in this area in collaboration with relevant stakeholders.