A Foucauldian analysis of development banking lending practices: a case study of the Fiji development Bank (FDB) 1967-1997

The Fiji Development Bank (FDB) in its development lending operations has undergone stmctural and cultural changes over the past nimiber of years. This research examines the bank's lending operations for the past thirty years (1967-1997), using a Foucauldian theoretical framework. The history of the bank's development lending practices can be described as discursive formations or discontinuities where the issue of 'land' has dominated the entire development banking (lending) fi-amework. A Foucauldian theoretical firamework brings out the concepts of archaeology and genealogy with builtin power and knowledge effects that are apparent, within the operations of the FDB and which can be interpreted as a disciplinary regime that provides a disciplinary surveiUance of the development banking operations within the Fijian context. The bank was formed in 1967 with two main lending divisions, namely agricultural and commercial, and was set-up to encourage development financing so as to foster the economic growth of Fiji. Therefore, the bank was wiUing to undertake and finance loans with less security undertakings than other commercial banks. This unique financing operation was made possible, to some extent, by govemment subsidies given to the bank. However, in 1994 the bank underwent a dynamic stmctural change with the introduction of the bank's new corporate plan which brought in a new corporate philosophy or culture which was profit-orientated. The bank underwent a massive loan review exercise, (or clean-up process) in relation to its entire lending portfolios: the focus of lending which was traditionally 'volume' - or 'quantity' - based on agricultural lending, also saw a new concept being introduced in the lending process a 'quality' base with a more commercial - lending focus. The corporate plan also changed the names of the lending divisions, which were now called profit centres and which were performance based. The lending officers were also now judged on their given lending portfolios in relation to their job tasks. Various management reports such as the Lending Management Information Systems (LMIS), Performance Appraisal Reports (PAR) and budgets, kept the management informed as to the overall operations of the bank. In relation to the lending process there was a greater disciplinary surveillance provided by the various profit centres to ensure that targets within the set budgets were met. From a Foucauldian perspective it can be appreciated that analysing such a case study brings out a new way of seeing things, and also provides a filtering process whereby the development banking data can be filtered which ultimately leads to a new pathway. This is clearly demonstrated in the thirty years operations of the FDB which is now seen to be more commercially profit orientated in financing its overall development lending.