barry whiteside : the importance of credit unions closing remarks by mr barry whiteside, governor of the reserve bank of fiji, at the 7th pacific credit union technical congress, suva, 7 november 2014. * * * salutations the chairman of the oceania confederation of credit union leagues, the president of the fiji savings and credit union league, members of the board of the oceania confederation of credit union leagues, my fellow governor, loi bakani, bank png distinguished guests, ladies and gentlemen. a very good afternoon to you all! introductory remarks at the outset i thank the organizers for inviting me to deliver this closing address to your congress. i am truly honoured. i guess after four days of meetings, workshops and intense technical deliberations you must all be more than ready to let your hair down and just relax! please allow me a little more of your time. i note from the programme, that you have had an opportunity to delve into some very pertinent and relevant topics. this capacity building forum affirms the important relationship between appropriately resourcing your people and the quality of governance standards. i congratulate the organizers for combining an excellent agenda with distinguished and knowledgeable speakers and i am sure you have much to take away. while i understand it has been a long week and i am standing between the graduation and the exciting cultural event, i would like to take just a little of your time to make a few remarks as you chart the way forward for development, and growth. reassurance of the importance of credit unions just like prime minister bainimarama stated when he opened this technical congress, i echo his sentiments on the critical role that credit unions play. as intermediaries you serve a broad base of members from all walks of life and income levels. the credit union movement continues to be a catalyst for greater financial inclusion. you encourage a savings culture and provide access to financial services and products for those who may face a number of barriers when dealing with financial institutions. in fiji, the large credit union membership accounts for approximately 5 percent of our labour force and this further confirms your importance in the financial system and economy. the key challenge for credit unions – corporate governance failure and absence of internal controls while we all agree on the importance of credit unions, tremendous constraints and challenges to your growth persist. these include poor corporate governance practices, ineffective regulatory oversight, archaic legislation, lack of internal controls and inadequate assessment and monitoring of risks. again the prime minister provided you

by more than the bank had expected, with more muted price pressures across a wide range of goods and services, consistent with the unexpected increase in excess capacity. bis central bankers ’ speeches • total cpi inflation has also been lower than anticipated, reflecting developments in core inflation and weaker - than - projected gasoline prices. • total cpi inflation is expected to remain around 1 per cent in the near term. it is expected to rise gradually, along with core inflation, to the 2 per cent target in the second half of 2014 as the economy returns to full capacity and inflation expectations remain well - anchored. • despite the reduction in global tail risks as a result of a series of actions by european and american authorities, the inflation outlook in canada is still subject to significant risks. • the three main upside risks to inflation in canada relate to the possibility of stronger - than - expected growth in the u. s. economy, higher canadian exports and renewed momentum in canadian residential investment. • the three main downside risks to inflation in canada relate to the european crisis, more protracted weakness in business investment and exports in canada, and the possibility that growth in canadian household spending could be weaker. • overall, the bank judges that the risks to the inflation outlook in canada are roughly balanced over the projection period. • reflecting all of these factors, the bank, on 23 january, maintained the target for the overnight rate at 1 per cent. • while some modest withdrawal of monetary policy stimulus will likely be required over time, consistent with achieving the 2 per cent inflation target, the more muted inflation outlook and the beginnings of a more constructive evolution of imbalances in the household sector suggest that the timing of any such withdrawal is less imminent than previously anticipated. with that, tiff and i would be pleased to take your questions. bis central bankers ’ speeches