caroline abel : launch of nebula fintech limited remarks by ms caroline abel, governor of central bank of seychelles, at the launch of nebula fintech limited, beau vallon, 30 january 2024. * * * vice president, mr ahmed afif, president and chief executive officer of the trade and development bank mr. admassu tadesse, ministers, board members, management and staff of nebula fintech limited distinguished guests, ladies and gentlemen, good morning. i am pleased to have been afforded the opportunity to say a few words, on behalf of the central bank, as nebula fintech limited becomes the newest payment service provider to step into the seychelles financial services landscape. as we are all aware, technology is transforming the design and delivery of financial services and products across the globe, and seychelles cannot be left behind. with this, there is an increased need and interest for new players other than traditional banks to enter the market and offer payment solutions. against this backdrop, the central bank has been actively working towards modernising the financial sector over the last few years by introducing new systems and appropriate legislation that would encourage and facilitate the introduction of innovative financial products and services. the launch of airtel seychelles'mobile money transfer service in 2015, licensed by the central bank, marked the introduction of e - money in the local financial system. nebula fintech limited joining the dynamic and evolving financial services landscape almost a decade later, facilitated by the national payment system e - money regulations, enacted in 2022, symbolises further efforts and progress made to put in place the necessary frameworks to encourage more innovation in the local payments sphere. leveraging innovative financial solutions to support the country's digitalisation agenda is one of the strategic priorities outlined in the central bank's new strategic plan with the aim of maintaining financial stability. hence, pushing forward with the country's modernisation and fintech journey will undoubtedly see continuous collaboration between the relevant stakeholders to develop new initiatives that will spur innovations that respond to the needs and specificities of the various segments of the population. this is key to stimulating competition, increasing consumer choice and fostering access to convenient, affordable, reliable, efficient and safe financial products and services. the relevant regulatory and supervisory frameworks will also be developed and adjusted to ensure the mitigation of potential risks that these developments can bring. 1 / 2 bis - central bankers'speeches it is hoped that the e - money services and other payment solutions that will be offered by nebula fintech limited will

seek to lower inflation. precise inflation targeting formalizes this arrangement and dilutes the scope for interference in each other ’ s domain. such independent policy pursuits by the government and the central bank, it is contended, serve the best interests of the national economy. 29. this assumption does not hold in the case of india because societal tolerance in india for inflation is low. given the compulsions of democracy and the large population of poor, any government in india has always to be, and indeed has been, sensitive to price stability even if it means sacrificing output in the short - term. so, the argument of divergence of natural preferences as between the government and the central bank that underpins the inflation targeting framework does not hold in the case of india. indeed both the government and the reserve bank have to factor in the short - term growth - inflation trade off in their policy calculations. macroprudential regulation and supervision 30. one of the important lessons of the crisis is that a collection of healthy financial institutions does not necessary make for a healthy financial system, and consequently that microprudential regulation and supervision at the individual institution level have to be complemented by macroprudential regulation at the systemic level to guard financial stability. there are several debates that have surfaced centred around this issue including, what should be the ambit of macroprudential policies, what are the instruments to be used, should macroprudential concerns be part of the monetary policy calculus, which institution or institutions should be given the responsibilities for macroprudential supervision and what should be the arrangements for coordination. all the above questions raise several governance issues with political economy dimensions. 31. consider the context. as part of the post - crisis reforms of regulatory architecture, there is an increasing trend of entrusting macroprudential supervision to central banks as an additional responsibility. where central banks already have this responsibility, it is being more explicitly defined. 32. all policy decisions, as much as they are based on analytical constructs, eventually involve making judgements. but judgement plays a bigger role in formulating macroprudential policies. this is so because formalizing the analytical framework for macroprudential policies, demanding as it does defining the metrics for identifying systemic risk and identifying the appropriate instruments, is conceptually more challenging than is the case for other policies. 33. possibly because of this judgement dimension, among central banks that are new to macroprudential regulation and supervision,