Up your game, Fiji Development Bank told

The Fiji Development Bank (FDB) is under the spotlight following a strong call in Parliament for urgent reforms to improve its performance, loan delivery, and customer service.

Minister for Housing and Local Government, Maciu Nalumisa, rose in Parliament on Tuesday to support the motion on the review of FDB’s 2022–2023 annual report. While the bank recorded a $3.8 million net profit in 2023, Mr Nalumisa pointed out several serious concerns raised by the Standing Committee on Economic Affairs.

“Despite its important role in supporting Fiji’s economy, the bank’s market share has fallen from 7.35 to 5.5 per cent,” he said. “Its interest rates are simply too high compared to commercial banks, making loans less accessible to ordinary Fijians.”

The report also revealed that while $93m in loans were approved in 2023, only $46.10m was disbursed — just 50 per cent. Of the 4400 loan applications received, less than half were approved.

Another major issue is the $112m in non-performing loans, with $11m already written off as bad debts.

He also backed the recommendation for mandatory financial literacy and business training for loan applicants, saying this would improve repayment and business success rates.

The minister expressed confidence in the bank’s new chief executive officer, Filimone Waqabaca, and welcomed FDB’s plan to offer housing loans — a move that will expand its services and help meet national housing needs.

Mr Nalumisa said under Mr Waqabaca's leadership, the bank would undergo some reviews and reforms to improve its efficiency and creation of new loan policies and products to improve its loan portfolio and services. 

“The FDB must be reformed to remain relevant, accessible, and supportive of Fiji’s development,” he said.

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