09.22.18

Habib Bank to close its business in Seychelles

Posted in Business and Economy, Seychelles banking at 6:28 pm by Robert Klien

 

As the regulator of the country’s banking system, the Central Bank of Seychelles (CBS) has reassured all clients of the Habib Bank Limited (HBL) that the bank has sufficient liquidity to fulfill its obligation towards all depositors and repay all debts.

This statement was made by CBS Governor Caroline Abel on September 21 during a press conference at the CBS boardroom, after announcing that the HBL had formally requested to close down its business in Seychelles.

The request dated and received by CBS on Monday September 10, 2018, was subsequently approved by the CBS Board on Thursday September 20, 2018, in accordance with Schedule 5 of the Financial Institutions Act, 2004.

The decision has already been communicated to HBL, while the notice shall also be submitted to the Registrar of Companies.

According to the management of the HBL, the decision to close down the business after years of operation is based on the strategic reorganisation aimed at increasing focus on its core markets.

Ms Abel explained that while HBL shall not be accepting any new business as of yesterday, following the CBS approval to close down its business, there is a clear process that the bank needs to undertake as part of its winding up. This includes repaying all of its depositors and other creditors in respect of its operations in Seychelles.

 

The HBL Seychelles branch was opened in 1976 and up to now, it has 1870 accounts, totalling to a sum of R96,512,461.65.