"Together with the additional capital requirement imposed on DBS in February 2022, this translates to approximately S$1.6 billion ($1.21 billion) in total additional regulatory capital," MAS added. The additional capital requirement for DBS is now a multiple of 1.8 times to its risk weighted assets for operational risk, an increase from the multiple of 1.5 times MAS applied in February 2022 following the November 2021 disruption, according to MAS.
MAS may subsequently vary the size of the multiplier depending on the outcome of ongoing reviews, it added.
In response, DBS said MAS' latest action will have an incremental 0.3% point impact on DBS Group's March 31, 2023 common equity tier 1 capital ratio, reducing it from 14.4% to 14.1%.
"Following the March 29 incident, the bank convened a
special board Committee to oversee a full review of our
technology resiliency with an independent external expert," DBS
Group CEO Piyush Gupta said in the response.
"We will complete the review as a matter of utmost priority and implement all recommendations expeditiously," he added.
MAS has now required a
comprehensive review it directed DBS to conduct in March to cover the May incident, MAS said.
The repeated inconvenience caused to the public is
unacceptable, Ho Hern Shin, MAS' Deputy Managing Director
(Financial Supervision), said in the MAS statement.
"The additional capital requirement imposed at this time
underscores the seriousness with which MAS treats this matter,"
she said. "DBS Bank must spare no effort in dealing with the
underlying issues leading to these disruptions."
($1 = 1.3252 Singapore dollars)
(Reporting by Navya Mittal in Bengaluru and Yantoultra Ngui in
Singapore, Editing by Louise Heavens)
