UPDATE 2-Singapore c.bank bars DBS Bank from making acquisitions for six months

(Recasts, adds DBS' response and details throughout)

By Chen Lin

SINGAPORE, Nov 1 (Reuters) - Singapore's central bank has barred DBS Bank from acquiring new businesses or making non-essential IT changes for a six-month period to ensure it focuses on shoring up its digital banking services, it said on Wednesday.

DBS, Southeast Asia's largest bank by assets, will also not be allowed to reduce the size of its branch and ATM networks in Singapore during this period.

The actions follow repeated and prolonged disruptions of the lender's banking services this year, the Monetary Authority of Singapore (MAS) said.

In the latest incident last month, DBS's online banking and payment services were down for more than 12 hours, and error messages were shown on automated teller machines (ATMs) at several locations.

The MAS requires banks to ensure any unscheduled downtime that affects their operations and customers does not exceed four hours within a one-year period.

In response, DBS said in a statement its board and management apologise for the series of digital disruptions this year, adding that the bank is addressing the issues at hand with the utmost priority.

Some measures in place include the rollout of a comprehensive roadmap to improve technology resiliency, it said. Should disruptions occur, the remediation measures being implemented will shorten the time taken for recovery, it added.

"As an acknowledgement that the bank could have done better, senior management will be held accountable, and this will be reflected in their compensation," said DBS Chairman Peter Seah.

The central bank said it will review the progress made by DBS on the issue at the end of six months, and that it may extend the measures, vary the additional capital requirement currently imposed, or take further action at that point.

"We have imposed this six-month pause on the bank to give it the space to take the actions needed to maintain customer trust," said Ms Ho Hern Shin, deputy managing director of financial supervision at MAS. (Reporting by Chen Lin; Editing by Kanupriya Kapoor and Jan Harvey)