The Central Bank of Seychelles published the outcome of its Financial Stability Committee’s review of second-quarter 2025 developments, finding the banking sector remained resilient, supported by strong liquidity, funding conditions and capital, while warning that risks to domestic financial stability have increased amid global uncertainty and rising cybersecurity threats. Domestic discussion focused on continued strong tourism performance, underpinned by higher visitor arrivals and improved air connectivity, alongside the sector’s exposure to external shocks and seasonal factors. The Committee highlighted increasing cyber risks in the financial sector, including more innovative scams, and called for financial institutions to strengthen cybersecurity resilience and for greater public awareness to raise vigilance. On external conditions, it cited tighter global financial conditions, trade-related tensions, geopolitical uncertainties, volatile commodity prices and persistent inflationary pressures as key sources of uncertainty that could affect the domestic economy. Asset quality improved further in Q2 2025 with a continued decline in non-performing loans, and monitoring will continue to ensure risks do not build up, alongside enhanced collaboration among relevant authorities.
Central Bank of Seychelles 2025-08-26
Central Bank of Seychelles Financial Stability Committee reports resilient banks but heightened global and cybersecurity risks
The Central Bank of Seychelles' Financial Stability Committee reported that the banking sector remained resilient in Q2 2025, supported by strong liquidity and capital, despite increased risks from global uncertainty and rising cybersecurity threats. The Committee emphasized the need for financial institutions to bolster cybersecurity resilience and enhance public awareness. External challenges, including tighter global financial conditions and geopolitical uncertainties, could impact the domestic economy.