DBS prohibited from buying new businesses or closing branches for 6 months

MAS will review progress after six months and may choose to extend the measures. 

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

In a statement posted on its website, the Monetary Authority of Singapore (MAS) announced that it has imposed a six-month pause on DBS’ non-essential IT changes following disruptions to banking services.

“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 central bank said.

MAS is also barring DBS from reducing its ATM branch network during the half-year period. This is to ensure adequate alternative channels for DBS customers in the event of further disruptions, Singapore’s central bank said.

After six months, MAS will review DBS’ progress on its remediation efforts. It warned that it may choose to extend the duration of the measures, vary the additional capital requirement currently imposed, or take further actions at that point. 

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An earlier independent third-party comprehensive review of DBS found shortcomings in system resilience, incident management, change management, and technology risk governance and oversight. DBS has since published a technology resiliency roadmap to address these shortcomings.

MAS said that it has reviewed DBS Bank’s remediation plan under the roadmap and is satisfied with its scope and the planned measures to improve system resilience. 

MAS expects that it will take DBS Bank 24 months to put into place the planned structural changes to improve resiliency of its services.

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.