last two years, the reserve bank has focused its policy on creating an economic environment that is conducive to investment and growth. to this effect, the overnight policy rate has been reduced further to 1. 5 percent and a passive approach to liquidity management was adopted. as a result, it is anticipated that commercial banks and other market interest rates will generally further decline. the downward movements in interest rates expected to provide incentives, for investors to borrow and pursue business bis central bankers ’ speeches opportunities, raise household ’ s disposable income and more importantly boost the economic recovery. their role as corporate citizens the commercial banks are an integral part of any economy. what is not often appreciated is that banks are also major employers and also pay substantial tax contributions in fiji. in fiji they have also participated actively in charity and social work. they have not taken their corporate social responsibility lightly and have taken the lead in giving back, to the communities that they operate in. but most importantly they have been partners together with the reserve bank and the government in the development of an internationally recognized sound and robust financial system. banking innovation banks over the years in fiji have been involved in financial innovation. we remember the use of old pass books. banks have been aggressive in introducing new financial products and services. we now have the atms, eftpos and internet banking. the reserve bank of fiji in collaboration with the banking sector is focusing on innovative ways of reducing costs of doing business for the commercial banks with the emphasis on lowering costs of financial services to be more accessible and affordable to everyone. the introduction of revolutionary products can contribute to financial deepening which in turn will ensure that more people have access to affordable and appropriate financial services and products. one has been the growing number of atms around the main urban centers. the good news is that now the atm ’ s and eftpos machines are interoperable, meaning that a customer from one bank can use the machine of another bank to conduct their banking transactions, except for one bank. we are delighted with the recent introduction and the distribution of wireless operated etpos machines which can be operated without a telephone line. these along with smart card products are some of the new tools of the trade that help to decentralize and make financial services more accessible. i wish to take this opportunity to express my sincere gratitude for the commitment and collaboration shown by the commercial banks, towards achieving 90 percent interoperability to date. ladies and gentleman this ensures any bank

inia naiyaga : the banking industry in fiji opening speech by mr inia naiyaga, acting deputy governor of the reserve bank of fiji, at the one - day banking expo organized by the association of banks in fiji ( abif ), suva, 7 may 2011. * * * introductory remarks chairman of the association of banks in fiji ( abif ), mr. norman wilson ; members of the association of banks in fiji ( abif ) ; distinguished guests ; ladies and gentlemen : ni sa bula vinaka and a very good morning to you all. i am delighted to be here this morning and would like to congratulate the abif for organizing this expo to raise public awareness, on the valuable role that commercial banks play in our economy. i encourage the public to take this opportunity to come and learn of our banking industry here in fiji. the commercial banks have a very long history in fiji, the older ones spanning over 100 years. role of the commercial banks ladies and gentlemen, let me say a little about the important role played by the commercial banks in fiji fiji has a well developed financial system that not only is secure and sound ; but has remained resilient despite the recent global financial crisis. the strong contribution of the banking industry to the fiji financial system has been a major factor in this regard. over the years the banks have invested heavily in fiji and have remained committed to delivering services that have helped shape and develop our country into what it is today. at the end of 2010 the commercial bank ’ s assets alone was around 42 % of the entire financial system and this highlights the importance of this industry in the local economy. the value of total assets of the commercial banks at the end of 2010 was $ 4. 5b and equates to around 75 % of gdp. their role in facilitating trade commercial banks are – financial institutions that primarily intermediate between the savers and the borrowers in an economy. they also buy and sell foreign currencies and facilitate trade and the transfer of payments both domestically and across international borders. it is these very transactions that help to pay for our salaries, the importation of goods and services that we use almost every day, and provide the much needed capital for investment. at the end of 2010, the total loan book value of all banks stood at $ 3. 1b and this has grown by 159 % over the last 10 years. commercial banks play an important role in the transmission of monetary policy in fiji. over the