The Monetary Authority of Singapore (MAS) has imposed penalties on DBS Bank for its online system issues earlier this year. The new measures involve locking the entire system of the bank until the problem is resolved.
These measures prohibit DBS from acquiring new business ventures, reducing the number of branches and ATMs, and changing the IT system except for security, regulatory compliance, and risk management purposes. This set of measures will be in place for 6 months, and MAS will assess whether the improvements made by DBS are satisfactory or not.
Previously, MAS had penalized DBS by ordering an increase in reserve capital of over 20 billion, which is 1.5 times the standard reserve requirement for 2022. When the bank experienced another collapse earlier this year, MAS once again ordered an increase in reserve capital, this time by 1.8 times.
TLDR: The Monetary Authority of Singapore (MAS) has penalized DBS Bank by implementing measures that restrict its operations and IT system due to online system issues. MAS will review the improvements made by DBS after a 6-month period to determine if the revisions are satisfactory. MAS had previously penalized DBS by ordering an increase in reserve capital, with the latest penalty being 1.8 times the standard reserve requirement.