The Acting Deputy Governor of the Reserve Bank, Petaia Tuimanu, has stated that Fiji’s financial system remains robust despite significant global economic challenges that may threaten confidence and heighten traditional banking risks.
The Financial Stability Review for 2024, published last Friday, evaluates the current state and potential risks to the stability of Fiji’s financial system. Tuimanu noted that the continuing low-interest rate climate is promoting credit growth in the economy by easing debt servicing costs and encouraging demand for credit, thereby boosting economic activity.
As of June 30, 2024, credit had risen by 9.3 percent to $11.8 billion, with further growth anticipated due to a positive economic outlook for the coming year. Consequently, monitoring and managing credit risk within the broader financial system will be a key area of focus moving forward.
The Reserve Bank of Fiji will persist in closely overseeing the performance of banks and other regulated entities, implementing necessary measures to uphold the safety and soundness of the financial system as needed.
Additionally, this year’s Financial Stability Report examines the influence of digital transformation on Fiji’s financial system. In light of the significant shifts in the Fijian payment system, the Reserve Bank will continue to track developments in this area in partnership with key stakeholders.