Singapore regulator bars DBS bank from new acquisitions for 6 months, over ‘unacceptable’ outages
- DBS also won’t be allowed to reduce the size of its branch and ATM networks in the city state for now, as it focuses on strengthening its systems
- Analysts say the central bank’s move is ‘firm but fair’, given the impact of the disruptions on Singapore’s push towards the digitisation of financial services
Singapore’s financial regulator on Wednesday barred DBS Group from acquiring new business ventures or reducing the size of its local branch networks for six months, as it steps up efforts to get the lender to resolve a spate of digital banking service outages.
The changes will ensure that the bank keeps sharp focus on restoring the resilience of its digital banking services, the Monetary Authority of Singapore said on Wednesday. The actions were taken following the repeated and prolonged disruptions of DBS’ banking services this year, most recently last month.
The continued disruptions – with at least five this year – led some analysts earlier to raise the prospect of more severe punishments such as fines. Already, the MAS has penalised DBS by raising its capital requirements twice in over a year.
Lawrence Loh, director of the National University of Singapore’s Centre for Governance and Sustainability, described the ban as one that was “firm but fair” and would give the bank the space to “stay focused on the much-needed infrastructural improvements”.
He noted the bank had merged with Citigroup’s consumer banking business, which effectively made it the largest foreign bank in Taiwan even after its technological lapses earlier in the year.
“It is probably proper that the priority now should be to keep the house in order and safeguard consumer interest, more than engaging in expansionary activities even in various parts of the world,” he said.
