Singapore Central Bank Weighs Action Over DBS Service Glitch

  • In Business
  • 2021-11-25 01:09:44Z
  • By Bloomberg

(Bloomberg) -- Singapore's central bank said it will consider supervisory actions after DBS Group Holdings Ltd. suffered one of the worst digital disruptions for Southeast Asia's biggest lender in the past decade.

Most Read from Bloomberg

  • Billionaire Family Feud Puts a Century-Old Business Empire in Jeopardy

  • Asia's Richest Man Looks to Walton Family Playbook on Succession

  • The 24-Year-Old Aiming to Dethrone Victoria's Secret

  • The Winners and Losers From a Year of Ranking Covid Resilience

  • An Arab City's Booming Art Scene Is Also a Grab at Soft Power

"This is a serious disruption and MAS expects DBS to conduct a thorough investigation to identify the root causes and implement the necessary remedial measures," Marcus Lim, assistant managing director at the Monetary Authority of Singapore, said in an emailed response to questions on Wednesday. "MAS will consider appropriate supervisory actions following the investigation."

The disruptions in DBS's digital services -- an area where the Singapore-based bank has invested in heavily -- started early Tuesday and resurfaced the following day. The problems stemmed from the bank's access control servers, resulting in customers' inability to log in to the services, country head Shee Tse Koon said in a video clip on its Facebook page.

"We acknowledge the gravity of the situation and as we work to resolve matters, we seek your patience and understanding," Shee said. He apologized to customers and reassured them that their deposits are safe, adding that banking services at all its branches have been extended by two hours.

DBS shares declined 0.6% as of 9:07 a.m. in Singapore Thursday.

Potential Action

The central bank has been following up closely with DBS since the disruptions began, Lim said. MAS agrees with DBS that the priority is to restore services, he said, without commenting on what potential supervisory actions the authority may take.

Under MAS's regulations, financial institutions need to ensure that the maximum downtime for each critical system doesn't exceed four hours within any period of 12 months. In 2010, DBS set aside S$230 million ($168 million) in regulatory capital after its banking services failed for more than six hours following repairs.

DBS in recent years has invested heavily to digitize its core banking business and set up new technology platforms. Such efforts have helped to boost the bank's return-on-equity and have enabled the lender to reach more customers in all of its markets.

In a separate comment on Twitter, the Singapore-based bank debunked speculation that the disruption was linked to a bond sale by Myanmar's shadow government set up by supporters of Aung San Suu Kyi, who was ousted by the army in a February coup.

The National Unity Government raised $9.5 million within 24 hours of the opening of the sale of its so-called spring revolution special bonds, Public Voice Television, a channel run by the group, reported Wednesday. The group plans to sell $200 million worth bonds in the initial phase.

Other Glitches

Singapore has seen other disruptions. In 2018, rival Oversea-Chinese Banking Corp. had a glitch that impacted its automated teller machines and online banking systems for several hours over a weekend.

The outages come as DBS prepares to face new challengers with the arrival of more digital banks in the city-state next year. Grab Holdings Inc.'s venture with Singapore Telecommunications Ltd. and Sea Ltd. are among four firms that won permits from MAS.

Grab also suffered a technical failure last week, which disrupted its ride-booking services in Singapore and some other Southeast Asian countries.

(Adds Thursday trading in fifth paragraph)

Most Read from Bloomberg Businessweek

  • Medical Debt Is Crushing Black Americans, and Hospitals Aren't Helping

  • Wildfires Are Getting Worse, and One Chemical Company Is Reaping the Benefits

  • How Child Care Became the Most Broken Business in America

  • Boeing Built an Unsafe Plane, and Blamed the Pilots When It Crashed

©2021 Bloomberg L.P.


More Related News

Junket King
Junket King's Arrest Spurs Selloff as Key Macau Market Targeted

(Bloomberg) -- The tide turned swiftly on Friday in Suncity Group's VIP rooms across casinos in Macau, where millions of dollars are bet on blackjack and...

Huobi Group Picks Singapore as Regional Headquarters
Huobi Group Picks Singapore as Regional Headquarters

The crypto exchange has already moved significant parts of its operations to Singapore.

SoftBank-Backed Snapdeal Targets $250 Million IPO in 2022
SoftBank-Backed Snapdeal Targets $250 Million IPO in 2022

(Bloomberg) -- Snapdeal, the Indian online retailer backed by SoftBank Group Corp. and Alibaba Group Holding Ltd., plans to file preliminary documents for an...

Indonesia's Central Bank Wants to 'Fight' Crypto With CBDC: Report

Indonesia is considering developing a central bank digital currency as one way to counter the use of cryptocurrency in the country.

Omicron Reaches Nations From U.K. to Japan in Widening Spread
Omicron Reaches Nations From U.K. to Japan in Widening Spread

(Bloomberg) -- The omicron variant of Covid-19, first identified in South Africa, has been detected in locations from U.K. to Spain and Canada, showing the...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply


Top News: Business