For instance, the prevalence of high non-performing loans reduces liquidity which impacts negatively on profitability, and broadly obstructs transmission mechanism of monetary policy. 10. Mr. Chairman, as part of our mandate to maintain financial stability, the  Bank has embarked on a process to resolve some of the prevailing issues which threatens stability of the banking sector.
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.