Press Release No 5 –
RESERVE BANK OF FIJI SIGNS MEMORANDUM OF UNDERSTANDING WITH THE RESERVE BANK OF INDIA Final
Press Release No. : 05/2013
Date : 07 March 2013
The Reserve Bank of Fiji (RBF) has signed a Memorandum of Understanding (MOU) with the Reserve Bank of India (RBI) on 5 March 2013. According to the Governor of the Reserve Bank of Fiji, Barry Whiteside, the MOU marks an achievement for the two institutions and will form the basis for enhanced cooperation and information sharing in the area of banking supervision. For the RBF, this is the first such MOU it has engaged in with a fellow regulatory institution.
Mr Whiteside mentioned that both RBF and RBI are responsible for the regulation and supervision of banks in their respective jurisdictions. These supervisory functions are becoming more essential and dynamic amidst growing cross-border banking establishments. He added that the recent global financial crisis has prompted supervisors across the world to develop effective regulatory frameworks to address contagion risk associated with growing cross-border banking establishments. The MOU sets out responsibilities of both the regulatory authorities to ensure their respective ongoing supervision of banking organisations effectively covers cross-border banking establishments on a consolidated basis and assist each other in performing their functions.
Governor Whiteside also stated that with regard to confidentiality of information, the RBF has considered provisions of section 27 of the Banking Act 1995 and section 19 of the Reserve Bank of Fiji Act 1985 whereby information may be disclosed for the purpose of performing its duties and functions. Moreover, the RBF and the RBI have agreed to observe strict confidentiality whereby information obtained will be used only for lawful supervisory purposes.