DBS Bank Ltd, Singapore's largest financial institution, is under a six-month moratorium on non-essential IT changes imposed by the Monetary Authority of Singapore (MAS) following a series of significant service disruptions throughout 2023. Notable incidents occurred on 29 March, 5 May, 26 September, and twice in October, with the disruption on 14 October lasting for 12 hours and severely impacting digital services and ATMs.
The MAS directive restricts DBS from pursuing new business ventures or reducing its branch and ATM count during this period. Only IT changes related to security, regulatory compliance, and risk management are permitted. The measures aim to ensure DBS focuses on bolstering its technology risk management systems and controls as part of a remedial plan to enhance operational resilience.
After the six-month review period, MAS may consider extending these measures or implementing further actions if necessary. In addition to the suspension, DBS is subject to an additional capital requirement of approximately $1.6 billion imposed by MAS following earlier disruptions. A multiplier of 1.8 times has also been applied to DBS' risk-weighted assets for operational risk.
An independent review in 2023 exposed deficiencies in DBS's system resilience, incident management, and technology risk governance. To rectify these issues, DBS is implementing a technology resiliency roadmap with senior management being held accountable for past lapses and the board tasked with enhancing its governance approach.
DBS Bank has committed to holding senior management accountable for these disruptions. Chairman Peter Seah acknowledged the bank's shortcomings, and the board aims to enhance governance in overseeing the implementation of the remedial plan. The bank is also barred from downsizing its branch and ATM networks or initiating new ventures during this period.
The directives will remain in effect until MAS is satisfied with DBS' progress in enhancing its operational resilience and technology risk management.
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