Parliament has successfully passed the Credit Union Bill 2025, representing one of the most significant reforms in the financial sector in decades. This new legislation replaces the antiquated 1954 Credit Union Act and aims to modernize the governance and oversight of credit unions in Fiji.
Finance Minister Esrom Immanuel emphasized the urgent need for reform, pointing out the drastic reduction in active credit unions—from over 400 in 2008 to just 17 today. He described this drop as indicative of systemic weaknesses that the new legislation seeks to address. The bill is designed to enhance member protection, improve risk management practices, and transfer overseer responsibilities to the Reserve Bank of Fiji.
“The passage of this bill provides the solution we need,” said Immanuel. “It introduces a comprehensive framework that reinforces governance, embeds sound risk management practices, and expands the range of services available to credit union members.” The Minister highlighted that these reforms align with the long-standing recommendations from the 2006 IMF Financial Sector Assessment Program.
Immanuel expressed concerns regarding stagnated asset growth, persistent governance gaps, and the lack of modern supervision, all of which contribute to unnecessary risks for members. Without legislative reform, he warned, the decline of credit unions would likely continue.
The bill has also garnered support from the opposition, with MP Hem Chand acknowledging its potential to introduce crucial safeguards that were absent in the previous law. Chand noted that the reform sets the foundation for a resilient and future-focused credit union system in Fiji.
This legislative change not only seeks to fortify the credit union sector but also aims to instill confidence among members and promote stability within the financial landscape of Fiji, paving the way toward a more robust economic environment.
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