The proposed Credit Union Bill 2025 will allow the Reserve Bank of Fiji to supervise and monitor credit union institutions in the country.
Tabled in Parliament last Thursday, Finance Minister Professor Biman Prasad said the Bill was an outcome of the International Monetary Fund’s Financial Sector Assessment Program recommendation in 2006.
“It was part of the Reserve Bank’s ongoing initiative on financial inclusion, and also because of the various calls for the Reserve Bank of Fiji to take up the regulation and supervision of credit unions in Fiji at that time,” he said.
“This led to the review of the existing Act, with the objective of establishing an appropriate regulatory and supervisory framework for Fiji’s Credit Union industry.”
He said statistics have proven a significant decline in active credit unions and financial cooperatives.
“The number of active credit unions declined from 400 in 2008 to only 17 as of February 2025. In fact, in 2018, the total asset size of credit union was $173million.
“The latest data available in September 2021 was only $200million.”
Prof Prasad said the reducing number of credit unions highlighted the importance of formalising the Credit Union Bill.
“It has been on the decline and that is why the rapid decline since 2008 underscores the importance of getting this comprehensive framework, essentially to strengthen governance practices, implement risk management principles, and enhancing member services with overall objective to safeguard member interests and promote financial stability through prudent supervisory oversight provided by the Reserve Bank of Fiji.”
In response, Opposition MP Premila Kumar commended Government’s decision to fast track the implementation of the Bill.
“I do understand the intent of the Bill because this is long overdue.
“We need to regulate the credit unions.”
