Regulatory Alerts2020-01-01
Capital Adequacy Requirements for Licensed Financial Institutions
The Reserve Bank of Fiji issued Banking Supervision Policy Statement No: 1 to formalize minimum capital adequacy ratios for licensed banks and credit institutions under the Banking Act 1995. The regulation mandates a phased increase for banks from 6% to 8% by December 1997, while establishing a permanent 10% requirement for credit institutions effective July 1996. These rules define eligible Tier 1 and Tier 2 capital components and apply risk-weighted asset calculations to ensure financial stability and depositor protection.
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