In efforts to ensure that commercial banks in the country have enough funds to counter risks they face in operations, the Reserve Bank of Fiji has increased the amount of funds to be held in reserve with the RBF.

As of April 21st this year, the RBF has increased the minimum capital adequacy requirements for licensed commercial banks to 12 percent from 8 percent, and for licensed credit institutions to 15 percent from 10 percent.
 
All licensed financial institutions in Fiji are required under Section 6 of the Banking Act to maintain a minimum amount of capital and unimpaired reserves, to be held in Fiji which is known as the minimum capital adequacy requirement.

RBF Governor Sada Reddy said the recent global financial crisis and the uncertainties related to a sustained recovery, call for a more conservative approach to ensuring that banks and credit institutions at all times, have sufficient capital to mitigate the risks that they face in their operations.

Reddy said this is also in line with the RBF's continuous effort to strengthen the safety and soundness of licensed financial institutions and overall, enhance the resilience of the financial system.

All licensed banks and credit institutions are required to maintain the increased minimum capital adequacy requirements from 3 May 2010.