From red flags to green lights: How Seychelles’ banks are quietly reinventing risk |18 July 2025

From red flags to green lights: How Seychelles’ banks are quietly reinventing risk

Compiled by Sunny Esparon

Behind the usual headlines about macroeconomic stability and tourism recovery, the Financial Stability Report 2024 reveals a quieter, more technical victory, but one that could reshape the very foundations of Seychelles’ financial system: the remarkable turnaround in the banking sector’s asset quality.

Non-Performing Loans (NPLs), the canaries in the coal mine for any banking system, fell sharply in 2024, dropping from 8.1 percent to just 5.5 percent of total loans. That figure is not just a number on a dashboard; It is the lowest seen since the pandemic, and a signal that Seychelles banks are not only lending more, but lending better.

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