A new legislative proposal aimed at revitalizing the credit union landscape in Fiji was introduced in Parliament. The proposed Credit Union Bill 2025 seeks to overhaul the outdated Credit Unions Act of 1954, promoting growth within the sector which has seen limited development due to its existing legal frameworks not aligning with global standards.
The explanatory note accompanying the bill highlights that credit unions have been operational in Fiji for over five decades, yet their progress has been hindered primarily by outdated regulations. To rectify this, the Credit Union Bill 2025 presents a modern framework intended to build public trust and enhance the safety and reliability of credit unions across the nation.
Developed in collaboration with the World Council of Credit Unions and supported by the Reserve Bank of Fiji, the bill reflects valuable feedback from various stakeholders, including government bodies and local credit union representatives. It aims to balance effective oversight with a reduced regulatory burden.
Under the proposed legislation, the Reserve Bank of Fiji will take on expanded duties as the Registrar of credit unions, gaining authority over registration, licensing, supervision, and enforcement. The comprehensive bill comprises 14 parts and 172 clauses, which are expected to usher in a new era of accountability and stability for credit unions in Fiji.
This initiative comes at a critical time, especially following the government’s recent focus on unlicensed credit providers and the need for stricter regulatory measures. Discussions and actions led by Deputy Prime Minister Manoa Kamikamica have been pivotal in addressing challenges posed by unregulated lending practices, with a commitment to amend the Reserve Bank of Fiji Act to ensure a more transparent and accountable financial system.
Such legislative efforts signify a positive shift toward enhancing consumer protection, fostering a fair competitive environment, and ultimately, improving the financial welfare of Fijians. The introduction of the Credit Union Bill 2025, paired with ongoing regulatory reforms in the financial sector, promises to create a more robust financial landscape for all stakeholders involved.
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