MAS requires on DBS to set aside additional capital due to November 2021 outage

Tuesday 8 February 2022 12:32 CET | News

The Monetary Authority of Singapore (MAS) has imposed DBS Bank to secure another USD 930 million in capital following the outage of its digital banking services in November 2021.

The capital requirement refers to the amount of capital banks have to set aside as a buffer to cover unexpected losses and keep themselves solvent in a crisis.

MAS has imposed this additional capital requirement on DBS after it suffered its worst digital disruption in a decade, from 23 to 25 November 2021. The Central Bank of Singapore said DBS will need to apply a multiplier of 1.5 times to its risk-weighted assets for operational risk.

This translates into an additional amount of about USD 930 million in regulatory capital based on the bank’s financial statements as at 30 September  – four times higher than the USD 230 million that DBS had to set aside for a similar disruption of its digital banking services in 2010, explains The Straits Times.

MAS’ new requirement will not impact DBS’ dividend policy. But it will affect its capital ratios, which are used to measure a bank’s financial strength and ability to withstand risks. 

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Keywords: cybersecurity, Monetary Authority of Singapore (MAS), funding, digital banking
Categories: Fraud & Financial Crime
Companies: DBS Bank, MAS
Countries: Singapore
This article is part of category

Fraud & Financial Crime

DBS Bank



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