Singapore’s central bank to weigh actions after DBS suffers massive glitch
- The disruptions in DBS’ digital services – an area where the Singapore-based bank has invested in heavily – started early on Tuesday and resurfaced the following day
- Under the central bank’s regulations, financial institutions need to ensure that the maximum downtime for each critical system does not exceed 4 hours within any period of 12 months
Singapore’s central bank on Wednesday said it would consider supervisory actions after DBS Group Holdings suffered one of the worst digital disruptions for Southeast Asia’s biggest lender in the past decade.
“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’ digital services – an area where the Singapore-based bank has invested in heavily – started early on 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 apologised to customers and reassured them that their deposits were safe, adding that banking services at all its branches had been extended by two hours.
The central bank has been following up closely with DBS since the disruptions began, Lim said. MAS agreed with DBS that the priority was to restore services, he said, without commenting on what potential supervisory actions the authority might take.
Central bank says no ‘significant funds’ from Myanmar firms in Singapore
Under MAS’ regulations, financial institutions need to ensure that the maximum downtime for each critical system does not exceed four hours within any period of 12 months.
In 2010, DBS set aside S$230 million (US$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 digitise 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 US$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 US$200 million worth bonds in the initial phase.
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’ venture with Singapore Telecommunications 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.
