The annual Financial Stability Report (FSR) serves as a platform to highlight and discuss key systemic risks to the financial system, while enhancing accountability and transparency on financial stability matters. Following the presentation of the report to the President, the Chairperson of the Financial Stability Committee noted that the report is a collective effort led by the Central Bank of Seychelles (CBS), with contributions from members of the CBS, the Ministry responsible for Finance, the Financial Services Authority (FSA), and the Financial Intelligence Unit (FIU).
The Chairperson provided a brief overview of the report, highlighting key risks and the ongoing work undertaken in collaboration with other financial institutions.
She noted that for the year 2025, the banking sector remained stable, particularly in light of the newly introduced financial policies. She also highlighted a growing concern regarding individuals taking out loans and subsequently facing difficulties in repayment. She explained that there is a general lack of understanding of the risks associated with borrowing, and emphasised that the Central Bank will strengthen public education efforts on responsible borrowing and loan repayment.
The meeting also served as an opportunity to update the President on current financial developments.
The delegates discussed the challenges facing the sector, particularly the rapid advancement of technology, including artificial intelligence. Concerns were raised regarding increased risks such as money laundering, terrorist financing, cybersecurity threats, and attempts by malicious actors to compromise financial systems. The Chairperson reiterated the need to continuously strengthen systems and enhance training to ensure resilience against these evolving threats.
Sanctions were also discussed at length, particularly those imposed by other countries, including the European Union. The ongoing conflict in the Gulf region was highlighted as a factor placing additional pressure on the financial services sector and increasing risks within the banking system, notably given that cyber threats tend to intensify during periods of conflict.
Those attending the meeting included Secretary of State Mr Patrick Payet, Director of the FSA Mr Pascal Morin, Director of the FIU Mr Philippe Moustache, and other members of the committee, namely Mr Mike Tirant, Ms Sharon Uranie, Ms Samata Esparon, and Mr Brian Commetant.
Distributed by APO Group on behalf of State House Seychelles.
