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ANALYSIS: Focus Of The Week: Banks In Fiji, The Price Of Money

Banks play a vital role in the economic development. In Fiji there are six commercials banks namely, ANZ, Westpac, Bank of Baroda, BSP, BRED and HFC Bank. The commercial banks
07 Mar 2015 10:07
ANALYSIS: Focus Of The Week: Banks In Fiji, The Price Of Money
HFC Bank

Banks play a vital role in the economic development. In Fiji there are six commercials banks namely, ANZ, Westpac, Bank of Baroda, BSP, BRED and HFC Bank.

The commercial banks perform many functions by satisfying the financial needs in most the sectors.

Currently all the banks are becoming customer oriented and widening their services with the advance technologies and making banking services easier and convenient for customers.

Generally the commercials banks perform various functions. They accept various types of deposits from customers in the form of savings, fixed and term deposits.

On the other hand, banks offer loans and advances to customers as overdraft facility, cash credit (secured & unsecured.

The Reserve Bank is the central bank of Fiji and oversees the operations of the commercials banks.

The primary function of the central bank is to conduct monetary policy to foster economic growth.

In particular, RBF manages the interest rates of Fiji, setting the reserve requirement and acting as the last lender of last resort to the banking sector during times of financial crisis or bank insolvency.

RBF have Prudential Standards and Guidelines for commercial banks and other financial credit institutions in Fiji.

There are two credit institutions in Fiji; Credit Corporation and Merchant Finance.

Further to the above the RBF have supervisory responsibilities and the disclosure statements for banks to advise the customers about all the banks products and charges.

Interest rates or the price of money determines people’s investment choices. Whether to buy an asset in the form of a house, a car or just good old saving.

This week is focused on interest rates and what the market is offering. One such decision would be increasing your FNPF contributions from the current 8 per cent to 10 per cent.

The FNPF return on money was 5.75 per cent for 2014. Investing in insurance or unit shares from the Unit Trust of Fiji which is a regular tax free income. Tax free dividend distributed in 2010 was approximately $3.7 million

Retail Term Deposits are investments which are considered to be anything above $500 to $250,000.

– This is an informative publication, sponsored by The Fiji Sun, Fiji Bureau of Statistics and HFC Bank. All views expressed or implied are purely of the Treasurer at HFC Bank, Peter Fuata.

 



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