Tuesday, 16 July 2024
DBS’ response to MAS' actions on digital disruption
MAS issued an announcement on DBS’ two-day digital disruption in November 2021.
Said DBS CEO Piyush Gupta, “In a digital era, customers rightly expect to have seamless and uninterrupted access to online banking services 24/7. This is something we take very seriously. Since the November incident, DBS has taken a series of actions to improve the resilience of our services and incident response. These actions are but a starting point. Over the course of the next few months, together with an independent expert, we will continue to review our systems and processes to ensure that we do better going forward.”
MAS’ supervisory action requires DBS to set aside additional capital amounting to 1.5 times risk-weighted assets for operational risk. This translates to approximately SGD 930 million in regulatory capital as at 30 September 2021, and will have a 0.4% point impact on DBS Group’s capital ratios till remedial actions are completed. Inclusive of the capital impact arising from the Citibank Taiwan consumer banking acquisition, DBS’ pro-forma CET-1 ratio as at 30 September 2021 would be 13.4%. The pro-forma ratio is at the upper end of our target CET-1 range, and hence will have no impact on dividend policy.
Re-disseminated by The Asian Banker
