Central Bank Clarifies Regulatory Process for Nouvobanq Shareholding Change
VICTORIA, Seychelles — The Board of the Central Bank of Seychelles has issued a public statement clarifying its regulatory approach to changes in shareholding within licensed banks, following recent media and public attention focused on a proposed shareholding change in Nouvobanq, reminding the public and financial sector participants that any transaction involving a change in ownership of a licensed bank is subject to a comprehensive assessment under Section 46 of the Financial Institutions Act 2004, and that the bank does not communicate details of regulatory applications or transactions while they are under review. The statement confirms that only once a regulatory decision has been finalised may relevant communication be provided by the concerned parties.
The clarification carries significance for ordinary Seychellois because changes in the ownership structure of Nouvobanq, one of the country’s key retail banking institutions, directly affect depositors, borrowers, and businesses that rely on its services for day-to-day financial transactions. Any uncertainty or speculation about such changes can erode confidence in the banking system at large, which is why the Central Bank’s statement emphasises that speculation may affect not only the individual institution involved but the financial system as a whole, with the potential to ultimately undermine financial stability.
The CBS noted that all supervisory reviews involving proposed ownership changes are conducted within established legal and regulatory frameworks applicable to all licensed institutions, and are subject to confidentiality requirements that prevent premature disclosure. The bank’s assessment process is designed to maintain strong governance and financial stability across the sector, and any corrective action that may be needed can only be taken once the review has been completed in accordance with due process.
Finance Minister Pierre Laporte had earlier addressed the National Assembly on the Nouvobanq matter, explaining that an agreement involving four entities, namely the Government of Seychelles, the Seychelles Pension Fund, Standard Chartered Bank, and Nouvobanq, is being finalised and will be signed shortly to ensure that all provisions in the original shareholder agreement are respected. The SPF is also in the process of appointing an independent international consultant through a competitive process to undertake due diligence evaluation, after which SPF expects to hold a meeting with Standard Chartered to negotiate the final price for the transaction and related correspondent banking arrangements.
The CBS concluded its statement by reassuring the public that the domestic banking sector remains stable and that the Bank will continue to discharge its responsibilities in a manner that ensures the sound functioning of the financial system and protects the interests of the public, reaffirming its values of accountability, transparency, and integrity as the independent institution responsible for monetary policy and financial system oversight in Seychelles.
As the regulatory process around the Nouvobanq shareholding change continues, the Central Bank’s public communication represents a necessary step to prevent damaging speculation from undermining the confidence that underpins the entire banking sector.
