Fiji’s financial system gross assets stood at $36.2billion as at June 30, 2024 – dominated by commercial banks at 41.0 percent.
The Fiji National Provident Fund (FNPF) follow at 29.8 percent, and the three systemically important banks (SIBs) – ANZ, BSP and Westpac, collectively accounted for 27.0 percent.
The Reserve Bank of Fiji (RBF) in its October Financial Stability Review stated commercial banks continued to account for the largest share of lending over non-bank lenders, and accounted for 78.3 percent of loans, while non-bank lenders make up the remaining 21.7 percent.
It said private sector business entities accounted for the largest share of total commercial bank loans at 66.6 percent, followed by households at 27.0 percent and others at 6.4 percent.
“While majority of the private sector business entities loans from the banking sector were made to the wholesale, retail, hotels and restaurants (WRHR) – 22.3 per cent, real estate – 19.8 per cent, and building and construction sectors – 8.7 percent,” the report stated.
The report also noted that the Fijian financial system’s aggregate credit stood at $11.8b as at June 30 this year, an annual growth of $1.0b (9.3 percent), compared to $0.6b (6.0 percent) recorded for the same period last year.
“Commercial banks continued to be the major driver of the current credit cycle, registering an annual growth of 11.8 percent as at June 30, 2024, supported by ample liquidity in the financial system, coupled with easing credit standards and positive demand for loans, which aided in keeping lending rates low and supported the expansion of private sector credit growth.”
The RBF said commercial banks’ loans pipeline in the coming months reflected key policy priorities for unlocking potential credit growth.
It said that as at June 30 this year, a total of $2.5b in unutilised limits of loans and advances was reported, of which $1.2b related to actual loans that were yet to be dispersed or drawn down.
