CBS sets out a strategy to strengthen the banking sector’s resilience to climate-related financial risks |18 April 2026
The Central Bank of Seychelles has formulated a Climate-related Financial Risk Supervision Strategy to strengthen the identification, monitoring and management of climate-related financial risks across the domestic banking sector. The strategy was approved by the Board of the Central Bank of Seychelles (CBS) on March 20, 2026, and supports CBS’s mandate to safeguard financial stability.
As a small island state, Seychelles is particularly exposed to climate change risks, including coastal erosion associated with sea level rise, flooding and other impacts of extreme weather events such as intense rainfall and storm surges, which can affect infrastructure, households, businesses and key sectors of the economy.
In addition, the global transition to a low-carbon economy may also impact certain activities and investments. These developments can have implications for both customers and the banking sector. The strategy aims to enhance the banking sector’s capacity to understand and respond to climate-related financial risks while supporting economic activity, strengthening resilience across the sector and contributing to national climate resilience.
Key areas of focus include:
• supporting the banking sector in identifying, assessing, monitoring and managing such risks,
• enhancing planning and transparency in risk management practices,
• strengthening CBS’s supervisory framework, and
• aligning Seychelles with international standards and best practices.
Actions outlined under the strategy include developing supervisory guidelines for the banking sector, improving climate-related data collection and availability, building technical expertise within CBS and the banking sector, and conducting regular assessments of climate-related financial risks.
The strategy reflects CBS’ proactive approach to addressing emerging risks and ensuring that the financial system remains resilient and aligned with both national priorities and global developments.
It also forms part of CBS’ broader work to develop a Sustainable Finance Roadmap for Seychelles, which will encourage sustainable business practices, strengthen risk management, support sustainable economic development and promote trust and confidence in the banking sector.
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