The Reserve Bank of Fiji’s (Reserve Bank) supervisory activities can be divided into two broad functions: regulation and supervision.
‘Regulation’ involves developing and interpreting legislation and licensing of financial institutions to carry out banking, credit institutions, insurance, insurance brokers, insurance agents, restricted foreign exchange Dealers and money changers business in Fiji. Furthermore regulations include issuing of supervision policies or guidelines, and approving requests from regulated financial institutions as required under the various legislations administered by the Reserve Bank.
‘Supervision’ involves assessing the safety and soundness of supervised financial institutions, providing feedback to institutions, and using supervisory powers to intervene in a timely manner to achieve the Reserve Bank’s mandate.
Its primary goal is to safeguard the interests of depositors, policyholders and FNPF members from loss. As such, the focus of supervisory work is determining the impact of current and potential future events (from both its internal and external environment), on the profile of supervised institutions. The Bank then provides feedback to institutions under necessary legislated powers in order to meet its overall objective.