caroline abel : opening remarks - stakeholder consultation workshop opening remarks by ms caroline abel, governor of central bank of seychelles, at the stakeholder consultation workshop on the draft policy paper on the proposed financial stability framework, beau vallon, 28 april 2022. * * * members of the financial stability committee, second deputy governor, participants, good morning. i am pleased to welcome you all to this consultative forum that will pave the way for seychelles to have a robust and effective financial stability framework. as we all know, the financial system, which includes various financial intermediaries, infrastructure and regulators, plays a critical role in promoting economic growth and development. as the world progresses, financial landscapes globally are also evolving, giving rise to opportunities and risks, thus highlighting the importance of having adequate policies that ensure the good functioning of the economy. a stable financial system upholds public confidence, which is at the core of financial intermediation, one of the key drivers of economic growth. while there is no universal definition for financial stability, there is global consensus on its importance. in the simplest terms, it is about having a financial system that is able to function well and effectively when economic conditions are good but also during adverse situations. it is about having a financial system that can adequately perform its financial intermediation role whilst managing and remaining resilient to systemic risks. as evidenced by the ever - increasing cybersecurity threats, climate change, and more recent challenges such as the ongoing covid - 19 pandemic and the russia - ukraine conflict, domestic and global risks to financial stability are continually evolving, emanating from sources beyond the spheres of economics and finance. recent shocks also reiterate the need to recognise the global interconnectedness and how what happens in one part of the world can significantly impact others. this reality calls for the stepping up of efforts to effectively monitor and manage systemic risks and build the resilience needed for a sound and stable financial system. compared to monetary and fiscal policies, the need to have strong financial stability policies started to gain prominence following the 2008 global financial crisis. in seychelles, the existing financial stability framework has been in place since 2016. over the past six years, its implementation has provided a steep learning curve for the relevant authorities. it has also allowed us to identify deficiencies that need to be addressed to enhance the resilience of the country's financial system against existing and potential risks. now that we are aware of the gaps, a collaborative

leasing regulatory framework which will assist in creating the enabling environment for this new financial tool to prosper in seychelles. further work on the development of the regulatory and supervisory framework for financial leasing is ongoing and will continue to progress as the industry develops and grows. over these two days, you will be taken through the initiatives taken by the central bank and other policy makers to introduce and develop leasing in seychelles. it is important to consider that while the authorities will devote resources and work towards establishing mechanisms that will support financial leasing as a means of alternative finance, the need for all stakeholders to work in partnership remains fundamental for the successful development of leasing in seychelles. collaboration with both the public and the private sectors is essential to foster this enabling environment. your participation in this forum strengthens the importance of this partnership. i hope that you take the opportunity to discuss, debate, and share ideas and experiences which will allow us to translate these consultations into actions which will realise the potential of financial leasing in seychelles. allow me to stress that in consideration of today ’ s economic environment and realities, the focus on financial leasing in seychelles is happening at an opportune time. we have gone a long way in the transformation of our financial sector which has supported the economic reforms. our economy continues to grow. it is time now to look beyond the present financing opportunities and develop alternatives and new possibilities to achieve greater economic and inclusive growth. as you are aware, access to finance is a major constraint for the development of smes globally, as is the case in seychelles, particularly in consideration of some of the requirements for securing traditional financing through loans. in comparison, financing through leasing provides less constraints in terms of requirements and eligibility criteria. it creates the possibility for smes to expand their access to short and medium term financing. hence leasing is an alternative mechanism to facilitate access to finance. it enables the use of capital equipment, in particular for new enterprises without credit track records and with limited possibilities to provide collateral. of note, the beneficiaries of financial leasing are not only smes but the advantages associated to this type of lending translate into gains also for the public and private sector such as investment opportunities for local and foreign companies and creation of new job opportunities. ladies and gentlemen, our initiatives and engagements towards the development of a thriving leasing market would not have been possible without the support and commitment of our faithful partners. i wish to conclude my remarks with a few words of acknowledgement. on behalf of the central bank, i wish to