Central Bank Slaps Financial Institutions with Fees for Supervisory Costs

New Fee Structure Introduced

The Central Bank of Seychelles has introduced a new fee structure for financial institutions operating in the country. The fees aim to recover the costs incurred by the Central Bank in its supervisory functions.

How the Fees Will Work

• Different annual fees will be prescribed for different classes of financial institutions.
• These fees will apply uniformly to all financial institutions within each class.

According to a statement from the Central Bank, the fees are necessary to offset the costs associated with monitoring and regulating the activities of financial institutions. The bank emphasized that its supervisory functions are critical in maintaining stability and confidence in the financial system.

Effective Date and Payment Terms

• The new fee structure comes into effect immediately.
• Financial institutions are expected to pay their annual fees within 14 days of the due date.

Industry Reaction

The move has been welcomed by industry stakeholders, who have long called for a more sustainable funding model for the regulator. A spokesperson for the Seychelles Financial Services Authority stated: “This is a positive development that will help to ensure the continued stability and integrity of our financial system.”

However, some critics have raised concerns about the impact of the fees on small and medium-sized enterprises (SMEs) in the sector. A representative from a local financial institution expressed concern that the fees may be too high for smaller institutions.

Central Bank’s Commitment to Review

The Central Bank has promised to review the fee structure regularly to ensure that it remains fair and proportionate to the size and type of financial institution.