MAS orders DBS Bank to pause non-essential activities for six months
The Monetary Authority of Singapore (MAS) has imposed a six-month pause on DBS Bank Ltd’s non-essential IT changes to ensure that the bank keeps sharp focus on restoring the resilience of its digital banking services.
DBS Bank will not be allowed to acquire new business ventures during this period or reduce the size of its branch and ATM networks in Singapore. The actions were taken following the repeated and prolonged disruptions of DBS’ banking services this year .
In April 2023, MAS directed DBS Bank to engage an independent third-party to conduct a comprehensive review of the effectiveness and adequacy of the people, processes, and technology supporting its digital banking services.
Shortcomings were identified in the following areas:
- system resilience;
- incident management;
- change management;
- technology risk governance and oversight.
MAS has directed DBS Bank to suspend all changes to the bank’s IT systems except for those related to security, regulatory compliance and risk management for a six-month period. This is to ensure that the bank dedicates the needed resources and attention to strengthen its technology risk management systems and controls. MAS will not approve any new business acquisitions by the bank during this period.
The regulator has also directed DBS Bank not to reduce the size of its branch and ATM networks. This is to ensure there are adequate alternative channels for its customers in the event of further disruptions while the bank works to enhance the operational resilience of its digital channels. This direction will be in force until MAS is satisfied with the progress of DBS Bank’s remediation plan.
MAS will review the progress made by DBS Bank on its remediation efforts at the end of six months. MAS may extend the duration of the measures, vary the additional capital requirement currently imposed, or take further actions at that point. In the meantime, MAS will retain the multiplier of 1.8 times to DBS Bank’s risk weighted assets for operational risk, which was imposed after the March and May 2023 incidents.