MAS not extending pause on DBS’ non-essential activities

DBS will still keep the 1.8x multiplier in risk weighted assets, however.

The Monetary Authority of Singapore will not be extending the pause imposed on DBS on engaging in non-essential activities.

DBS will still be required to keep the 1.8 times multiplier on risk weighted assets for operational risk, Singapore’s central bank said in a press release.

Beginning 1 November 2023, MAS had imposed a six-month pause on DBS’ non-essential IT changes following disruptions to banking services.

This prohibited DBS from acquiring new business ventures or reducing the size of its branch and ATM networks for six months.

In its latest announcement, MAS noted that DBS has “made substantive progress to address the shortcomings identified from service disruptions experienced by its customers in 2023.” 

“Improvements have been made to its technology risk governance, system resilience, change management, and incident management,” MAS said in a press release.

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Meanwhile, MAS said that the multiplier of 1.8 times will be lifted when it is satisfied that DBS Bank has demonstrated the ability to maintain service availability and reliability, and handle any disruptions effectively.

In a separate statement, DBS CEO Piyush Gupta said that the pause allowed the bank to reflect on which areas to improve on and how to better address them.

“In the months ahead, we will continue to prioritise resources to strengthening technology resiliency. We will also dedicate management attention to ensuring that our efforts have sustained effectiveness,” Gupta said.

DBS stated that the bank’s ability to resume non-essential IT changes and acquire new business ventures will not dilute its focus on strengthening technology resiliency and enhancing digital service availability.

“Our pledge is to ensure that innovation is well balanced with resiliency so as to meet our customers’ expectations for reliable, seamless and effortless banking,” Gupta added.