GOVERNMENT should list its profitable companies on the stock market, says a Reserve Bank of Fiji official.
Chief manager financial institutions Esala Masitabua said the idea of the public enterprises to float on the stock exchange was a suggestion for government to consider.
Mr Masitabua said the idea was to have the profitable state owned enterprises or "winners" listed on the stock exchange by stimulating interest as a viable alternative for investment compared to banks.
He said the central bank was also working on a law that would govern credit limitations in the country.
He said there was also consideration for the establishment of a microfinance bank.
Speaking at a symposium that addressed banking and finance in Fiji, Mr Masitabua said there was a small space just below the financing requirements that were offered by major banks like Westpac and ANZ, that a microfinance bank could meet.
He said RBF encouraged banks to lend in direct areas.
"We don't intend to be stuck at 2 per cent growth," he said.
Mr Masitabua said the bank supported the South Pacific Stock Exchange. Although SPSE - with 17 listed companies, 20,000 individual shareholders and $1.2 billion as capitalisation - was still in embryonic stage, it was difficult to imagine who would fill the gap that SPSE had filled, he said.
He said liquidity had cultural issues where some investors did not invest offshore.
In another development, a university lecturer said Fiji needed strong financial banks and a strong financial sector.
Neelesh Gounder, of Griffith University in Australia called for competition and efficiency among the retail banks as it would enable cheaper loan to consumers. Mr Gounder said there was more to banking than interest rates.
The symposium, organised by the University of the South Pacific and Griffith University, was told the banking sector had experienced a trend of growing profitability.
Mr Gounder recommended the introduction of measures that could increase competition as he called for efficiency in the banking system.
He said regulatory requirements such as minimum capital had little impact on margin settings.