The Central Bank of Seychelles (CBS) has published a Climate-related Financial Risk Supervision Strategy to strengthen the identification, monitoring and management of climate-related financial risks across the domestic banking sector, following approval by the CBS Board on 20 March 2026. The strategy is positioned as part of CBS’s mandate to safeguard financial stability. The framework is designed to address both physical risks relevant to Seychelles, including coastal erosion, flooding, intense rainfall and storm surges, and transition risks linked to a global shift to a low-carbon economy that could affect activities and investments. It focuses on supporting banks’ risk identification and management, enhancing planning and transparency in risk management practices, strengthening CBS’s supervisory framework, and aligning domestic practice with international standards and best practices. Planned actions include issuing supervisory guidelines, improving climate-related data collection and availability, building technical expertise within CBS and the banking sector, and conducting regular assessments of climate-related financial risks. CBS also linked the strategy to its broader work to develop a Sustainable Finance Roadmap for Seychelles.
Central Bank of Seychelles 2026-04-17
Central Bank of Seychelles publishes climate-related financial risk supervision strategy for domestic banks
The Central Bank of Seychelles has published a Climate-related Financial Risk Supervision Strategy to strengthen identification, monitoring and management of climate-related financial risks in the domestic banking sector. The strategy covers physical and transition risks, envisages supervisory guidelines, enhanced data collection, capacity building and regular risk assessments, and aligns with international standards while supporting development of a national Sustainable Finance Roadmap.