solutions. similarly, our current financial landscape is also having to change to accommodate the opportunities brought about by the advances in technology and rise of the digital era. the use of 1 / 3 bis central bankers'speeches innovative technology in the design and delivery of financial services and products is transforming the way we transact and most importantly, the way money is presented. in seychelles however, there is still some level of reticence among much of our population to move towards newer technologies. a tour of town at 7. 30 in the morning on any given day will show long queues outside the banks, of clients waiting for bank opening hours to either withdraw or deposit cash, although there are atm facilities and an increasing number of merchants avail their customers the use of pos machines for instant payment. although the level of fintech in seychelles still has some way to go to get to the highest possible level, there is no mistaking the growing interest in harnessing the possibilities. in 2014, the central bank of seychelles issued a telecom provider, airtel seychelles, with a license to offer mobile money transfers – the first license issued by the institution to a payment service provider offering a service based on a fintech solution. since then, the central bank has initiated a number of projects as part of efforts to encourage innovation in the payments sphere. these would include : the drafting of the e - money regulations which will set the licensing framework to introduce emoney issuers. an amendment to the foreign exchange act which will enable entities licensed under the national payment systems act and the e - money regulations ( once in effect ), to conduct cross border transactions and engage in the selling and buying of foreign exchange. the reformation of the national payments council so as to act as a conduit to promote innovation in the payments sphere. as the sole institution with the mandate of ensuring financial stability, the central bank of seychelles has, for some time, realised that it needs to further understand the dynamics of the phenomenon, which has given rise to technological innovation such as biometric authentication, mobile money and wallets, cloud computing, cross border remittances, blockchain technology, big data, to name but a few. most importantly, it is imperative that the bank understands the impacts that fintech has on the financial institutions falling under its regulatory purview and subsequently, on the stability of the financial system. fintech is challenging what had become a slow paced and conventional industry, transforming it into a dynamic and vibrant ecosystem.

preceded this crisis, but they may have amplified the dimension of the boom and they were important to how the crisis unfolded and to how policy has responded. in many respects, financial innovation over this period outpaced the system ’ s capacity to measure and limit risk, to manage the incentive problems in the securitization process and to provide for an appropriate degree of transparency through meaningful disclosure. once the performance of the underlying assets began to deteriorate, these weaknesses in the system magnified the uncertainty about the scale of potential losses and added to the intensity of pressures that accompanied the crisis. the growth in leverage and liquidity risk outside of banks made the system vulnerable to a sharp erosion in liquidity, but without the protections established to limit the risk of classic bank runs. the large share of financial assets held in institutions without direct access to the fed ’ s traditional lending facilities complicated the ability of our traditional policy instruments to contain the damage to the financial system and the economy. this crisis provides a stark illustration of how hard it is for a supervisory and regulatory framework designed principally around banks to contain the impact of financial shocks in a manner that mitigates the risks to the broader economy. elements of reform what broad principles and objectives should guide reform? i would like to outline some of the key elements of a stronger framework of regulation and oversight, and identify some of the harder questions we will need to answer to implement this framework. these questions are more fundamental than questions of the allocation of responsibility across supervisors, market regulators and central banks and thus must be resolved before turning to those questions. i focus here on the issues related to financial stability, and do not try to address the equally important areas of consumer and investor protection, market integrity or the role of the government - sponsored entities in housing. i believe the most important imperative is to build a financial system that is more robust to very bad outcomes and more resilient to shocks. this means ( 1 ) a system in which the major institutions are less vulnerable to shocks ; ( 2 ) a system that is less vulnerable to margin spirals and a generalized pull - back in liquidity and funding ; and ( 3 ) a system that is more able to withstand the effects of failure of a major financial institution. looking past the immediate crisis, a more resilient system must be built on stronger and better designed shock absorbers, both in the major institutions and in the infrastructure of the financial system. at the level of the financial institution, the key financial shock