Commission starts Financial Market inquiry

The Commerce Commission has today launched an inquiry to undertake a Substantial Market Power (SMP) study of Fiji’s Financial Market.

Commission Chairman Mahendra Reddy said the inquiry followed a submission received from the Consumer Council of Fiji alleging that the banks in Fiji have abused their market power in imposing exorbitant charges, fees and unreasonable conditions which has become an impediment to investment and growth in Fiji.

Dr Reddy said the SMP study is charged with providing a stock take of the level of competition, products and services offered, fees charged and the level of disclosures amongst the financial institutions in Fiji.

“The forces driving change will be analyzed, in particular, technological development.” Dr Reddy said.

He said the recommendations will be made on the nature of the regulatory arrangements that will best ensure an efficient, responsive, competitive and flexible financial system to underpin stronger economic performance, consistent financial stability, prudence, integrity and fairness.

He added that the commission has written to all players in the financial sector explaining the details of the inquiry and expectations.

The commission hopes to finish the inquiry in two months time.

By Nasik Swami