Regulatory Alerts2024-01-03
Financial Institutions (Capital Adequacy) (Amendment) Regulations 2023
The Central Bank of Seychelles, in consultation with the Minister of Finance, has issued these 2023 regulations to amend capital adequacy requirements for local financial institutions. The amendments establish minimum capital ratios of 12 percent for the Capital Adequacy Ratio and 6 percent for the Core Capital Ratio, while redefining risk-weighted assets to encompass credit, market, and operational risk components. By replacing Schedules 2, 3 and 4 and introducing a new regulation, the rules standardize risk weight assignments for sovereigns and public enterprises, specify credit conversion factors for off-balance sheet exposures, and empower the regulator to mandate higher capital buffers based on individual bank risk profiles.
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