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.

Fiji

Reserve Bank of Fiji