MAS lifts operational risk multiplier imposed on DBS

DBS was censured by MAS last 5 July 2010 after the service outage of its online and branch banking.

In a release, the Monetary Authority of Singapore announced that we have lifted the Operational Risk Multiplier imposed on DBS Bank Ltd following the service outage of its online and branch banking systems on 5 July 2010.

MAS has reviewed the measures taken by the bank to address the gaps highlighted in our issued directives. The bank has met all the key deliverables and complied with our directives. MAS has therefore lifted the Operational Risk Multiplier on DBS Bank with immediate effect.

As part of MAS’ ongoing supervision, we will continue to monitor the robustness of the bank’s operational and technology risk management frameworks and controls in ensuring the reliability, resilience and speedy recoverability of their IT systems and infrastructure.

On 4 August 2010, MAS censured DBS Bank for the shortcomings and inadequate management
oversight by the bank of its outsourced IT systems, networks, operations and infrastructure that resulted in the widespread system outage on 5 July 2010. In addition to requiring the bank to adopt adequate risk control measures to address the deficiencies identified (“directives”), MAS also required DBS Bank to apply a multiplier of 1.2 times to its risk-weighted assets for operational risk, which translates to the bank setting aside an additional amount of approximately S$230 million in regulatory capital on a group basis based on numbers as at 30 June 2010.