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Financial Services Supervision Division

One of Central Bank of Seychelles (CBS) objective is to promote a sound financial system. The Financial Services Supervision Division (FSSD) contributes to this objective by pursuing strategic objectives of ensuring financial system stability and strengthening the regulatory framework.

To discharge its strategic objectives, the FSSD is mandated with:

  • Licencing of financial institutions
  • The prudential regulation and supervision of banks and bureaux de change as provided for under the Financial Institutions Act, 2004 and corresponding regulations.
  • Enforcement of the Credit Union Act, 2009.
  • Certain supervisory responsibilities over the Housing Finance Company (HFC) since 2009.
  • Certain regulatory and supervisory responsibilities over the Development Bank of Seychelles (DBS) since 2009.
  • Maintenance of the Credit Information System (CIS) under the Credit Information System Regulations 2012.
  • The prudential regulation and supervision of financial leasing business as provided for under the Financial Leasing Act 2013 and corresponding regulations. 
  • In order to ensure that activities conducted by the above institutions are conducted in a sound manner, the FSSD discharges the following four main supervisory functions divided into three units:

    (a) Policy Unit

    The key focus of the Policy Unit is on:

  • Licensing

    Banks and bureaux de change are licensed under the Financial Institutions Act, 2004. Leasing companies are licenced under the Financial Leasing Act, 2013 and the Financial Leasing (Licensing) Regulations, 2014.

  • Policy and regulatory affairs

    The Unit reviews existing legislations, directives and guidelines and undertakes amendments to ensure that regulatory and supervisory framework is kept up to date with market developments and international best practice. The unit also ensures that institutions conform to legislative requirements.

  • b) On-Site Unit
    The objectives of on-site examinations are to assess and evaluate the overall condition and financial soundness of banks, HFC, DBS and leasing companies. By conducting on-site examinations at the place of operation of these institutions, this allows the Unit to obtain first hand insight into the risk management structure of the institution and checking the validity of data submitted to the supervisory body.

    c) Off-Site Unit
    The Off-Site Unit is responsible to analyse financial information submitted periodically by banks, HFC, DBS and leasing companies. By monitoring individual institution's condition as well as the financial system through the submission of returns, ensures that supervisors can promptly identify sudden or adverse trends and take relevant corrective action to ensure that risk to the financial system are addressed. Bureaux de changes also submit periodic financial information on their operations.

    The Unit also performs stress testing on a periodic basis which is aimed at identifying weaknesses in the financial system on both micro and macro level.

    The Off-Site Unit also administers the CIS that makes available credit information on clients of banks, hence contributing to credit risk management.