A country of bank accounts

MOST people in Fiji have at least one bank account, a reflection of the predominantly cash eco nomy under which the country operates.

The main banks are Westpac, Bank of New Zealand, Bank of Baroda and ANZ, with the only non-foreign bank the National Bank of Fiji pulling up the rear, its books dominated by its large number of small savings accounts and without the mix of larger companies the other banks enjoy.

There is an extensive branch network and stiff competition between the five

banking organisations.

One of the newer players in the local financial scene is the Merchant Bank of

Fiji, which is owned by the Fiji Develop ment Bank (50 per cent), AGC, the fi nance company arm of Westpac (30 per cent) and the International Finance Cor poration of the World Bank (20 per cent).

The company has, since it was estab lished in Fiji in 1986, done much of its business by way of financing motor vehi cle, tractor, machinery and office equip ment purchases, with a small number of personal loans. The split between com mercial and individual lending is about 5050.

Merchant Bank of Fiji’s main competi tors are the trading banks (there are no other finance companies of this type in

Suva), but the company has tended to fill the gaps where the banks have not been too keen to operate. It has been particu larly active in financing second-hand cars imported from Japan, a business which has seen considerable volume recently, but will now be looking at more new

vehicle financing.

Merchant Bank was, like most businesses in Fiji, hit by the severe eco nomic downturn which gripped the country after the two military coups.

There was some recovery in 1988, but business doubled in 1989 and Merchant Bank recently moved premises to accommodate extra staff. □

Westpac Suva.

ANZ Suva with BNZ.

National Bank of Fiji, Suva.