Regulatory Alerts2023-07-06
Guideline on Large Exposure, Credit Concentration and Connected Lending
The Central Bank of Seychelles issues this guideline to establish comprehensive supervisory requirements for calculating, approving exceptions to, and reporting large exposures, credit concentrations, and connected lending across all licensed banks. Banks must aggregate credit exposures to customers and closely-related groups, deduct eligible collateral from core capital calculations, and report facilities exceeding 10 percent as large exposures while capping aggregate credit concentrations at 600 percent of core capital. The directive mandates monthly electronic submissions by the fifteenth day, requires prior written Central Bank approval for exposures surpassing 25 percent of core capital based on detailed risk and sector analyses, and supersedes the August 2009 directives.