By Ronnie Harui
The Monetary Authority of Singapore said it has imposed an extra capital requirement on DBS Group Holdings Ltd. following the outage of its digital banking services from Nov. 23-25 last year.
The measure translates to an additional 930 million Singapore dollars ($692.3 million) in regulatory capital, based on DBS' reported financial statements as at Sept. 30.
The MAS said in a statement Monday evening that deficiencies in DBS' incident management and recovery procedures resulted in the prolonged disruption to digital services.
The central bank has directed DBS to appoint an independent expert to conduct a comprehensive review of the incident, including the bank's recovery actions. The independent review is required to assess how a similar incident can be prevented in future.
DBS must rectify all shortcomings identified from the review and implement measures to ensure that any future disruption to its digital banking services is resolved quickly and adequately, the MAS said. The additional capital requirement will be reviewed when MAS is satisfied that DBS has addressed the identified shortcomings.
"In a digital era, customers rightly expect to have seamless and uninterrupted access to online banking services 24/7," DBS' Chief Executive Officer Piyush Gupta said in a statement. "This is something we take very seriously."
The additional regulatory capital won't have an impact on dividends, DBS said.
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(END) Dow Jones Newswires
February 07, 2022 20:36 ET (01:36 GMT)Copyright (c) 2022 Dow Jones & Company, Inc.