MAS orders DBS Bank to suspend non-essential activities for six months
During this period, DBS may not acquire new businesses or reduce the size of its branches and ATM network.。
The Monetary Authority of Singapore (MAS) has imposed a six-month moratorium on non-essential information technology reforms at DBS Bank to ensure the bank remains focused on restoring the resilience of its digital banking services.。
During this period, DBS will not be allowed to acquire new businesses or reduce the size of its branch and ATM network in Singapore.。The actions come after DBS's banking services have suffered several long disruptions this year.。
In April 2023, the MAS instructed DBS Bank to engage an independent third party to conduct a comprehensive review of the effectiveness and appropriateness of the people, processes and technologies supporting its digital banking services.。
The review found that DBS was deficient in the following areas:
- System Resilience
- Accident Management
- Change Management
- Technology Risk Governance and Oversight
The Monetary Authority of Singapore has instructed DBS to suspend all changes to its information technology systems for six months, except those related to security, regulatory compliance and risk management.。This is to ensure that banks invest the necessary resources and efforts to strengthen technical risk management systems and controls.。The MAS will not approve any new business acquisitions by the bank during this period.。
The regulator also instructed DBS Bank not to downsize its network of branches and ATMs.。This is to ensure that as banks strive to improve the operational resilience of their digital channels, they will provide customers with sufficient alternative channels in the event of further disruptions.。The directive will remain in effect until the Monetary Authority of Singapore is satisfied with the progress of DBS's remediation plan.。
MAS to review progress of DBS remedial work in 6 months。The HKMA may then extend the validity of the measures, change the additional capital requirements currently imposed or take further action.。During this period, the HKMA will retain the operational risk-weighted assets implemented by DBS following the events of March and May 2023..8 times multiplier。
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