The Central Bank of Seychelles announced the publication of the Financial Stability Committee's Financial Stability Report for 2025, the third edition issued under the Financial Stability Act, 2023. The report reviews key financial and non-financial risks to Seychelles' financial system, the measures taken by relevant authorities to monitor and manage them, and banking, non-bank and macroeconomic indicators for the year ending December 2025. Its main conclusion is that the financial sector remained resilient despite difficult global and domestic conditions. Within that assessment, the banking sector is described as supported by strong capital adequacy, adequate liquidity buffers and improved asset quality, while vulnerabilities linked to household lending persisted but overall credit risk remained contained. The non-bank financial sector also remained stable, with the insurance sector staying resilient and profitable despite the lingering effects of the 7 December 2023 disasters, supported by adequate capital and liquidity buffers and enhanced supervision. The report also points to regulatory reforms in capital markets that strengthened investor protection and supervisory effectiveness, and to implementation of the Virtual Asset Service Providers framework to improve oversight of the virtual assets sector. In addition, it highlights Financial Stability Committee work during 2025, including development of a Risk Assessment Matrix for banking-sector systemic risk monitoring, an assessment of Artificial Intelligence adoption in the capital markets and fiduciary sectors, and capacity-building for technical staff across member institutions. The 2025 report includes a Creole summary aimed at improving accessibility and public understanding of financial stability issues. The Financial Stability Committee also plans a supplementary publication in September covering the insurance sector and public enterprises in more detail, including the implications for the country's financial stability.
Central Bank of Seychelles2026-06-26
Central Bank of Seychelles publishes Financial Stability Committee 2025 report highlighting resilient banking and non-bank sectors
The Central Bank of Seychelles has published the Financial Stability Committee's 2025 report, which concludes that Seychelles' financial sector remained resilient through 2025 despite challenging conditions. It cites strong banking-sector capital and liquidity, stable non-bank institutions, and reforms in capital markets and virtual asset oversight, while noting continued monitoring of household lending risks. A supplementary publication is planned for September on the insurance sector and public enterprises.