Seychelles’ ‘key location’ attracts foreign banks |21 July 2014

The Governor of the Central Bank, Caroline Abel has explained the necessity of having foreign financial institutions in Seychelles in the country’s current economic climate.

She said the presence of a new bank means it expands Seychelles’ financial system, develops this sector more, thus increasing its contributions towards the economy.

And for the consumers it is a new institution which will provide new services which maybe do not currently exist in our system.

It also happens that these new financial institutions see Seychelles as a very important strategic point in the world which enables them to offer their services not just for the domestic economy, but also for foreign clients.

Ms Abel was speaking on the importance of having reputable foreign banks in Seychelles after the official opening recently of a branch of Bank AL Habib Limited here.

The ceremony was held in the presence of Vice-President Danny Faure, who officially opened the bank; the Minister for Finance, Trade and Investment Pierre Laporte; high officials of the bank itself notably its general manager Ehtesham H. Ali and country manager Syed Azar Abbas Zaidi and other high officials of  the Central Bank and other local banks in Seychelles, as well as the chairman of the Seychelles Chamber of Commerce and Industry Marco Francis.

The Bank AL Habib Limited, based in Pakistan, will be focusing more on providing services in international trade finance.

“This particular bank is targeting mainly clients on the African continent and it will begin by providing offshore services and in a few months will work with the local market,” said Ms Abel.

When asked if there are other banks in the pipeline which intend to set up operations here, Ms Abel said that this depends on the financial institutions themselves or individuals as the Central Bank itself, beign a regulator, does not promote the establishment of such institutions.

“The Seychelles Investment Board promotes the country in the various sectors of the economy. And it is through its promotions that interests are expressed for the establishment of financial institutions in the country. Not only those that are channeled through the Central Bank of Seychelles but also those under the National Financial Authority,” said Ms Abel, adding that the Central Bank analyses all applications received based on the policies and laws that govern the bank.

“If the proposal passes the tests needed, the institution is provided a license to operate,” said Ms Abel.

Concerning the role of the new bank, Ms Abel said it is there to bring all the financial institutions to work together. She cited an example where a company needs a very big loan and one bank alone cannot provide it. As a result, Bank AL Habib Limited, in its current state and financial position, can bring other institutions together to support a major project.

“And to us here in Seychelles it is very important when we want to develop different sectors like agriculture, fishing to name a few. These are such areas that the bank can support,” said Ms Abel.

Bank Al Habib Limited has a network of 433 braches and sub branches in 125 cities and towns of Pakistan, including oversea branches in Bahrain, Malaysia, China, Turkey, UAE and now Seychelles.

In his speech to officially open the bank, Vice-President Faure said the financial highlights of Bank AL Habib Limited speak volumes; it has a very strong balance sheet and excellent credit rating and numerous awards accorded to it.

Noting that the new bank has a strong forte in international trade finance, Vice-President Faure said that the government looks forward to the bank introducing new innovative products in this particular area.

The vice-president said that the bank’s coverage of the international trade business across Africa from its base in Seychelles will be unique and will be instrumental in providing exposures to the Seychellois in cross border trade finance.