Central Bank of Seychelles Financial Stability Committee keeps risks elevated and maintains enhanced monitoring as tourism falters

The Central Bank of Seychelles published the outcome of its Financial Stability Committee’s first-quarter review, concluding that risks to financial stability remain elevated amid heightened external uncertainty and potential spillovers to the domestic economy. The Committee agreed to maintain enhanced monitoring to support timely identification of emerging risks. Tourist arrivals strengthened in the first two months of 2026 but declined from early March following airspace closures and flight suspensions from key transit hubs linked to the intensification of the conflict in the Middle East, with potential impacts on both banking and non-banking sectors through tourism and trade. The Committee noted Seychelles’ upgrade to “Largely Compliant” by the Global Forum on Transparency and Exchange of Information for Tax Purposes and its removal from the European Union grey list in February 2026, while flagging that supervisory gaps persist in the international financial services sector. The banking sector was assessed as resilient, supported by strong liquidity, funding conditions and capital buffers, with improved asset quality reflected in lower non-performing loans, although faster growth in consumer lending than corporate lending was identified as a trend warranting close supervisory oversight.