Its benefits are obvious. I believe that this will also boost confidence in Fiji as the system will bring us on par with developed countries. I wish once again to encourage businesses and the public to take advantage of this system. Finally, I wish to commend the support provided by the commercial banks and LogicaCMG which has helped RBF realise this vision.
This is frequently the case for the unregulated or so-called “shadow” banking system, not subject to the stringent requirements of the regulated banking sector.2 Low funding rates can inspire risky business strategies. For example, extreme forms of maturity transformation can become attractive, particularly if the risk adjustment calculus fails to make a proper correction for the expected gains.