The Government says it intends to review the existing Fair Reporting of Credit (FRC) Act of 2016, in order to improve ease of access to bank credit by consumers and investors.
This has been highlighted by the Minister for Communications Manoa Kamikamica in his meeting with the Chairman of Association of Banks in Fiji(ABIF), Rakesh Ram.
Kamikamica said that the Ministry of Finance and his ministry have agreed that a proper, fully functional Credit Bureau or Agency is important in Fiji as we try to stimulate the economy and encourage credit in the Small to Medium Enterprises.
He said Government wanted to ensure that credit reporting agencies which operate under the FRC Act can do so efficiently and in a way which gives confidence to financial institutions about the financial status of those who want to borrow money for investment.
“The regulation of credit reporting agencies involves balancing customer rights to privacy against the need for sound credit information to allow lenders to make informed decisions.”
“So the aim of the review is to ensure that we improve the information available to financial institutions and their confidence about lending, in particularly to consumers and SMEs, who often lack strong credit information profiles. Improving borrower discipline and bank credit risk monitoring strengthens financial inclusion”. If we can take more risk out of lending decisions, we improve access to credit and lower the cost of credit.”
Ram said the Association welcomed the review and looked forward to work closely with Government to achieve the best outcome from the review.
He added that the Association supported the existence of a robust and effective credit reporting regime. We believe that this is an integral part of a strong financial system, providing for better financial literacy and investor confidence.