Re­serve Bank of Fiji hails launch of BRED Bank

The Pak Banker - - Front Page -

SUVA

Ad­dress­ing at the launch of BRED Bank, the Deputy Chair­man of Re­serve Bank of Fiji Mr Dar­ryl Con­stantin said he wish to thank Satish for the kind in­vi­ta­tion to of­fi­ci­ate at this launch of BRED Bank Fiji.

He sdaid this is an­other mile­stone in the his­tory of our fi­nan­cial sys­tem. To­day marks the en­try of a new bank and, per­haps more sig­nif­i­cantly, not since Bank of Hawaii en­tered our fi­nan­cial sys­tem in 1993 have we had a bank start from scratch and be chal­lenged to build its op­er­a­tions from the ground up.

He said I would like to make some gen­eral com­ments about bank­ing and our li­cens­ing frame­work. Bank­ing & Li­cens­ing En­try into our bank­ing sys­tem is quite dereg­u­lated. How­ever, I must say that while any­one can ap­ply to es­tab­lish a bank in Fiji, they must meet our fairly com­pre­hen­sive li­cens­ing re­quire­ments, which play an in­te­gral role in en­sur­ing we are deal­ing with rep­utable, tried and proven play­ers.

His­tor­i­cally, we have had banks with­draw from the coun­try for var­i­ous rea­sons. Some con­tend that this in­di­cates that the coun­try is suf­fi­ciently banked. The Re­serve Bank of Fiji, how­ever, does not presently have a pol­icy on lim­it­ing the num­ber of play­ers in the in­dus­try. We do like to en­sure that those in­sti­tu­tions that do come in are strong and have the ap­pro­pri­ate back­ing to take them for­ward.

May I add that the de­ci­sion to com­mence full bank­ing op­er­a­tions in a new ju­ris­dic­tion is not a spur of the mo­ment thing and is cer­tainly not taken lightly. Bank­ing is a rel­a­tively dif­fi­cult and com­plex busi­ness to es­tab­lish. Set up and oper­at­ing costs are ex­tremely high. Just look around you and take a guess at how much has been spent on this fit-out.

A new in­sti­tu­tion try­ing to po­si­tion it­self in an al­ready com­pet­i­tive mar­ket must be pre­pared to do more to se­cure a share of that mar­ket. There are stren­u­ous com­pli­ance re­quire­ments set by the reg­u­la­tors that must first be met be­fore the busi­ness can even think of tak­ing in the first de­posit, or giv­ing out the first loan.

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