The Central Bank of Seychelles published a communiqué summarising the Financial Stability Committee’s 10 June 2025 discussions on developments observed in the first quarter of 2025, highlighting increased risks to domestic financial stability from a more uncertain global environment even as banking sector indicators remain strong. The update also pointed to a shift in bank lending towards consumer loans, particularly household borrowing. Tourist arrivals rebounded at the start of 2025, but the Committee noted downside risks to tourism growth from global trade tensions and geopolitical uncertainty. It also took note of Seychelles’ removal from France’s blacklist of non-cooperative tax jurisdictions, and the expected benefits for the jurisdiction’s reputation and investment, while flagging that multiple assessments due in the second half of 2025 could bring challenges with potential implications for financial system stability. External risks were linked to a projected global growth slowdown driven by trade disagreements, including United States and China tariff conflicts, and geopolitical tensions that can disrupt supply chains and weaken global trade. Against this backdrop, the Committee stressed the need for vigilance, continued monitoring of financial and economic conditions, and proactive regulatory oversight, particularly as household credit expands while lending to the tourism sector and other traditional corporate borrowers declines.

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