DBS imposed with $1.6b additional capital requirements for service disruptions
Total additional regulatory capital has now reached about S$1.6b (US$1.2b).
The Monetary Authority of Singapore (MAS) has imposed additional capital requirements on DBS Bank in lieu of the continued services disruption.
On 29 March, the bank’s online banking and payment services notified the Singapore central bank that its customers experienced trouble getting into their online banking services.
Another disruption occurred to its digital banking and ATM services last 5 May.
Along with the additional capital requirement imposed by MAS on DBS on February 2022, the amount has now reached an estimated S$1.6b (US$1.2b).
DBS Bank now faces an increased capital requirement for operational risk, with a multiplier of almost twice its risk-weighted assets.
This is a significant increase from the 1.5 times multiplier that MAS had applied in February 2022, following a disruption in November 2021. The size of the multiplier may be subject to change based on ongoing reviews by the central bank.
Following a March incident, DBS Bank formed a committee to oversee an external review of its IT resiliency. MAS directed the bank to conduct a comprehensive assessment of various aspects of its digital banking services.
Although the March and May incidents had different causes, MAS has now required the review to also include the May incident.
(S$1 = US$0.75)