Regulatory Alerts2019-06-05
Consolidated Financial Institutions (Credit Classification and Provisioning) Regulations 2010-2019
The Central Bank of Seychelles mandates licensed banks to classify all credits monthly into five risk-based categories and maintain minimum statutory provisioning levels. The regulations standardize provisioning percentages, require reconciliation with IFRS 9, enforce strict write-off timelines within twelve months of "Loss" classification, and restrict the re-negotiation or rolling over of non-performing credits to prevent classification manipulation. Banks must implement robust management information systems, maintain accurate collateral valuations, and submit monthly reports detailing credit classifications, provision adequacy, and interest-in-suspense accounts to ensure ongoing regulatory compliance.
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