SINGAPORE: The Monetary Authority of Singapore said on Monday it has imposed on DBS Group Holdings Ltd an additional capital requirement of about $692 million, following a two-day disruption to its digital banking services in November.
The MAS has required DBS to apply a multiplier of 1.5 times to its risk-weighted assets for operational risk. This translates to an additional amount of about S$930 million ($692 million) in regulatory capital.
The MAS noted deficiencies in DBS's incident management and recovery procedures to restore its digital banking services https://www.reuters.com/technology/singapore-bank-dbs-says-services-disrupted-second-day-2021-11-24 to a normal state, resulting in the prolonged duration of the disruption.
The central bank has directed DBS to appoint an independent expert to conduct a comprehensive review of the incident, including its recovery actions.
The additional capital requirement will be reviewed when MAS is satisfied that DBS has addressed the identified shortcomings.
The requirement is four times higher than the amount for a similar disruption of digital banking services in DBS in 2010. - Reuters
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