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UPDATE 2-Singapore's central bank will not extend pause on DBS' non-essential activities

Yantoultra Ngui
Updated ·2-min read

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DBS has made substantive progress to address shortcomings

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Pause has allowed DBS to improve, CEO says

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Multiplier of 1.8 times to risk weighted assets retained

(Adds response and CEO quote from DBS statement in paragraph 3, 5-7)

By Yantoultra Ngui

SINGAPORE, April 30 (Reuters) - Singapore's central bank said on Tuesday it will not extend the pause on DBS Bank's non-essential activities that it imposed to ensure the lender remained focused on restoring the resilience of its digital banking services.

The pause imposed by the Monetary Authority of Singapore (MAS) was effective from Nov. 1, 2023 to April 30, 2024 following repeated and prolonged disruptions to DBS' banking services last year.

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Non-essential activities include information technology changes and the acquisition of new business ventures.

"While full implementation of the remediation plan is still ongoing, MAS notes that DBS Bank has made substantive progress to address the shortcomings identified from service disruptions experienced by its customers in 2023," MAS said in a statement.

Following MAS' statement, DBS said being able to resume non-essential activities will not dilute its focus on strengthening technology resiliency and enhancing digital service availability.

"While progress has been made, we are committed to building on this further," DBS CEO Piyush Gupta said in a statement. "In the months ahead, we will continue to prioritise resources to strengthening technology resiliency."

DBS said several areas are works-in-progress, including simplification and strengthening of the bank's systems architecture and broadening the use of artificial intelligence to strengthen change management.

Nevertheless, MAS said the multiplier of 1.8 times DBS' risk weighted assets for operational risk will be retained.

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

Shares of DBS, Singapore's largest bank by assets, closed 0.4% higher before the announcement, in line with the broader local benchmark stock index rise. (Reporting by Yantoultra Ngui; Editing by Kirsten Donovan and Barbara Lewis)