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Archive -Seychelles

CBS comments on closure of Bank of Ceylon on February 1, 2016 |05 February 2016

The Central Bank of Seychelles (CBS) has commented on the closure of the Bank of Ceylon on February 1, 2016.

In a communiqué, CBS says it was made aware in a letter dated October 19, 2015, of the Bank of Ceylon’s intention to relocate premises for the conduct of its banking business from Capital City Building to Oliaji Building following approval granted by its Board of Directors.

Upon receipt of this letter, the CBS informed the Bank of Ceylon that written approval for the commencement of banking operations would be required from the CBS in order for it to proceed with its relocation. This could only be granted following an inspection of the new premises to ensure that the CBS is satisfied that the space would be ideal for the conduct of such operations.

Following an inspection on January 29, 2016, the CBS found that necessary conditions were not met, meaning that approval for the commencement of the bank’s operations was not granted.

This resulted in the closure of the bank on February 1, 2016.

In line with its objective to ensure the soundness of the financial system, and in the interest of the clients of the Bank of Ceylon, the CBS has since set a deadline of one month for the latter to meet all conditions, allowing it to commence operations on February 2, 2016.

Despite allowing the bank to operate, the CBS has committed to regular visits of the bank’s premises during this one-month period, in order to ensure that concerns laid out are in fact being addressed and that the bank provides confidence that the necessary work is being undertaken.

 

 

 

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