The DBS Group Holdings Ltd. logo atop an ATM at a bank branch in Singapore, Wednesday, February 17, 2021.
Lauryn Ishak | Bloomberg | Getty’s paintings
SINGAPORE – Shares of the biggest bank in Southeast Asia DBS group fell 1.4% on Thursday, a day after a 10-hour blackout on digital services.
the Monetary Authority of Singapore the failure was “unacceptable” and the lender “failed to satisfy expectations”.
DBS was the most important loser when it comes to index points on the Singapore benchmark Straits Times Index Thursday.
In an announcement released on Wednesday, MAS said it had instructed DBS to “conduct an intensive investigation to find out the foundation reason behind the disruption and submit the outcomes of the investigation to MAS.”
The central bank said it might gather the “vital facts” before taking appropriate motion.
DBS digital services were disrupted from around 8:30am on Wednesday morning until 5:45pm. Users were unable to access online banking services or transact through their brokerage.
Late Wednesday, the bank announced it might extend banking services in any respect its branches by two hours.
DBS tried to supply to its customers that its systems haven’t been compromised and customer deposits are protected.
In an announcement on Wednesday, DBS chief executive Piyush Gupta said the bank was “upset” by the incident and added: “We adhere to higher standards and our top priority is to review today’s events.”
In November 2021, MAS imposed additional capital requirements on DBS after a two-day interruption to the bank’s digital banking services.
DBS needed to apply a 1.5x multiplier to its RWA for operational risk, leading to 930 million Singapore dollars (US$700 million) of additional regulatory capital.
“It won’t be a surprise” if MAS imposes an analogous penalty on DBS for Wednesday’s outage, said Chong Beng Soon, an associate professor at Nanyang Technological University’s business university.
Nonetheless, he doesn’t expect the incident to significantly impact consumer or investor confidence within the bank in the long run, he told CNBC.
He added that the lender’s “strong banking franchise and status” would allow it to resist any negative effects of the incident.