The Reserve Bank of Fiji (RBF) had urged the Standing Committee on Economic Affairs to support the Credit Union Bill 2025, warning that Fiji’s credit union sector is in steep decline and urgently needs reform.
In its submission during the Committee’s closed deliberations in August, the RBF said the industry had been operating under an outdated legal framework that had failed to keep pace with global and domestic developments, slowing the sector’s progress and undermining its viability.
“The progress of the credit union industry has been considerably slow, largely due to a legal framework that has not kept pace with the development of the credit union movement globally and in Fiji,” the submission stated.
“This has prompted the need to reform the credit union industry, to safeguard its viability and growth.”
The Bank highlighted alarming statistics: although 400 credit unions are registered, only 17 are currently operational. A similar decline is seen among financial co-operatives—just 5 of 29 registered thrift and credit co-operatives remain active.
The RBF said the Credit Union Bill 2025 would modernise the sector and significantly strengthen its role in Fiji’s financial landscape.
“By introducing clear licensing pathways, robust governance requirements, and prudential oversight, the Bill creates an enabling environment for credit unions to expand their reach, improve service delivery, and contribute to economic development,” the RBF said.
The proposed law includes new mechanisms for risk management, member protection, and long-term sustainability, addressing long-standing structural and operational gaps that have limited growth across the sector.
Importantly, the Bill also supports financial inclusion, enabling underserved communities to access savings and credit services, while encouraging innovation through electronic banking and more diverse financial products.
“The Credit Union Bill 2025 is a timely and transformative piece of legislation which lays the foundation for a modern, inclusive, and resilient credit union sector that can contribute meaningfully to Fiji’s financial sector development,” the Bank told the Committee.
The Bill was passed in Parliament last week.
