By Selma Valentin
Financial Services Supervision Division
Central Bank of Seychelles
Introduction
 General facts on Seychelles
 Role of the Central Bank of Seychelles
 Seychelles economy before the economic reform
program
 Changes brought about by the economic reform
program
 Current challenges
Seychelles Facts
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Population: 89, 770 (2010 figure)
Area: 455 sq km
Number of Islands: 115
Official languages: Creole, English and French
Capital City: Victoria
GDP: $1,084 million (2011)
Economic sectors: Tourism, Fishing, Agriculture, Financial
Services
 Major trade partners for exports: United Kingdom, France, Italy,
United States, and Germany
 Major trade partners for imports: United Arab Emirates, Spain,
South Africa, France, and Singapore
 2 World Heritage Sites
Central Bank of Seychelles
 Autonomous under the CBS Act 2004
 Regulatory body for banking and non-banking financial
services
 Supervises the financial sector via:
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The Financial Institution Act 2004
The Insurance Act 2008
Financial Institutions (application of Act) Order 2009
Objectives
 The main objectives of Central Bank of Seychelles are:
 a) to promote price stability;
 b) to maintain sound financial system
 The CBS also advises the Government on banking,
monetary and financial matters and in particular on
the monetary implications of proposed fiscal policies
or operations of the Government
FUNCTIONS
 promoting and developing Seychelles as a centre for
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carrying on of financial services;
to monitor, supervise and co-ordinate the conduct of the
financial services from within Seychelles;
providing, and within the framework of local legislation
and laws, appropriate supervision and regulation of the
conduct of banking non banking financial services;
formulating appropriate policies, and providing advice and
assistance on the regulation of banking non banking
financial services;
to regulate and administer the insurance
Divisions of Central Bank of
Seychelles
 Administration Division
 Research and Statistics Division
 Banking Services
 Banking
 Public debt
 Payment Systems
 Financial Markets Division
 Financial Services Supervision Division
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Licensing and regulating and supervision of Financial
Institutions, which include commercial banks , bureaux de
change, insurance businesses as well as other microfinance
institution.
Supervision Division
FSSD
Banking Supervision and
Foreign Exchange section
Banks
Bureaux
de
Change
Credit
Union
Insurance
section
Housing
Finance
Insurers
Intermediaries
Financial Services Supervision
Division
Setup of the Division:
 Head of Division
 Director
 Financial Services Analyst (12)
 Financial Services analyst Assistants (8)
 Secretary
Institutions Supervised by BS & FX
Section
 Domestic Banks
 Offshore Banks
 Microfinance Institutions
 Bureaux de change
 Other Non deposit taking Institutions
Activities of the FSSD
 Licensing , regulation and supervised of Financial
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Institutions
On-site and off-site supervision
Administration of prudential requirements for the
banking sector
Complaints handling
Drafting of Regulations
Analysis of Financial Institutions on demand
Insurance Section
 Supervised Insurance companies and intermediaries
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through the Insurance Act 2008
Two Domestic Insurers
SACL, Harry Savy Insurance
Two offshore Insurers
One offshore Captive
9 Brokers
47 Agents
SIBA
 An autonomous corporate Body established in 1995
under the Seychelles International Business authority
Act, 1994.
Objectives of SIBA
 To monitor, supervised and co-ordinate the conduct of
international business within Seychelles
 Promote and help develop seychelles as a Centre for
carrying on of financial services
 Provide advice and assistance to government on
matters relating to international business
Responsibilities
Administration of:
 International Business Companies Act,1994
 International Trust Act,1994
 Companies Special License Act,2003
 Limited Partnerships Act, 2003
 Licensing and regulation of Corporate Service
Providers
 Management of seychelles International Trade Zone
Act,1994.
And Recently
 Mutual & Hedge Fund act 2008
 Securities Act 2007
Seychelles economy pre-economic
reform program
 Fixed exchange rate policy
 Overvalued Seychelles Rupee
 Limited foreign currency
 Parallel markets
 Restrictive foreign exchange controls
 Low external reserves
 Low predetermined interest rates
Changes brought about by the
economic reform
 Floating exchange rate
 New regulations on foreign currency exposure risk
 However
 High interest rate
 High liquidity
Current challenges
 Human capacity building
 Setting up adequate policies and regulation
 Keeping abreast with supervisory development
 Financial literacy
 Corporate governance
 Lack of competition
 Increasing access to credit
 Financial Literacy
 Financial Tribunal
Challenges (cont)
 High lending rates
 State-owned institutions (DBS and HFC)