Home ยป DBS/Citi Faced with Penalties by National Bank of Singapore as Data Center Outage Exceeds Four Hours

DBS/Citi Faced with Penalties by National Bank of Singapore as Data Center Outage Exceeds Four Hours

The Monetary Authority of Singapore (MAS) has instructed DBS and Citi to investigate the recent bank collapse that occurred over the weekend. Although the initial cause was a malfunction in the data center’s cooling system, resulting in the shutdown of various services hosted on the center, MAS has stated that appropriate measures will be implemented after the investigation is completed.

MAS does not directly control the quality of the data center but mandates that banks must have sufficient backup centers to restore operations within four hours. However, in this instance, both banks failed to restore their systems within the specified timeframe.

Just last year, DBS was penalized for its involvement in a banking collapse, which led to the directive of the bank to increase the funds allocated for operational risk. Additionally, an independent examiner was appointed to investigate the incident.

TLDR: The Monetary Authority of Singapore (MAS) has ordered DBS and Citi to investigate the recent bank collapse. While the initial cause was a data center malfunction, both banks failed to restore operations within the required timeframe. MAS has taken measures in the past to address such incidents and will implement appropriate actions once the investigation is completed.

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