The Acting Deputy Governor of the Reserve Bank, Petaia Tuimanu, has affirmed the resilience of Fiji’s financial system despite the considerable global economic challenges that could potentially threaten confidence and increase traditional banking risks.
The Financial Stability Review for 2024, published last Friday, evaluates the current state and risks to the stability of Fiji’s financial sector. Tuimanu noted that the ongoing low-interest rate environment is driving credit growth in the economy by reducing debt servicing costs, which in turn boosts demand for credit and stimulates economic activity.
As of June 30, 2024, credit grew by 9.3 percent, reaching $11.8 billion, with expectations of further growth due to a positive economic outlook for the upcoming year. Monitoring and managing credit risk in the wider financial system will be a key focus moving forward.
The Reserve Bank will maintain close surveillance on the performance of banks and other supervised entities, and if necessary, will take appropriate measures to ensure the safety and stability of the financial system in Fiji.
This year’s Financial Stability Report also examines the influence of digital transformation on the country’s financial system. With significant developments in Fiji’s payment system, the Reserve Bank will continue to collaborate with key stakeholders to monitor these changes closely.