DBS may resume non-essential banking activities but higher capital buffer stays: MAS

The Monetary Authority of Singapore (MAS) has said it will not extend a six-month restriction on DBS Bank's non-essential banking activities past April 30.

- Ang Qing

The pause was among penalties imposed on Nov 1 in response to disruptions to the bank's services in 2023.

However, Singapore's largest bank must continue to set aside additional regulatory capital by applying a multiplier of 1.8 times to its risk-weighted assets for operational risk - a penalty imposed in May 2023 the authority said in a statement on April 30.

Such buffers help banks deal with unexpected losses and remain solvent in times of crisis.

In 2022, DBS Bank was required to apply a multiplier of 1.5 times to these assets after it suffered its worst outage in more than a decade the previous year.