The Monetary Authority of Singapore (MAS) announced that it will further extend the MAS SGD Facility for Enterprise Singapore Loans to complement the six-month extension of the Temporary Bridging Loan Program (TBLP), from April 01, 2022 to September 30, 2022. The SGD Facility will continue to provide SGD funding to eligible financial institutions for a two-year tenor. A revised interest rate of 0.5% per annum will apply for funding provided from the May 2022 application window onward. In addition, MAS has imposed an additional capital requirement on DBS Bank Ltd, following the widespread unavailability of DBS Bank’s digital banking services during November 23-25, 2021.
MAS will require DBS Bank to apply a multiplier of 1.5 times to the risk-weighted assets for operational risk. This translates into an additional amount of approximately SGD 930 million in regulatory capital (based on reported financial statements as at September 30, 2021). MAS noted deficiencies in DBS Bank’s incident management and recovery procedures to restore its digital banking services to a normal state, resulting in the prolonged duration of the disruption. MAS has directed DBS Bank to appoint an independent expert to conduct a comprehensive review of the incident, including recovery actions of the bank. The independent review is required to assess how a similar incident can be prevented in future. DBS Bank must rectify all shortcomings identified from the review and implement measures to ensure that any future disruption to its digital banking services is resolved quickly and adequately. The additional capital requirement will be reviewed when MAS is satisfied that DBS Bank has addressed the identified shortcomings.
Keywords: Asia Pacific, Singapore, Banking, Covid-19, SME, Credit Risk, Regulatory Capital, Lending, Basel, Operational Risk, Business Continuity, Operational Resilience, Regtech, DBS Bank, MAS
Previous ArticleG20 Publishes Communiqué on Its February Meeting in Indonesia
The European Commission (EC) published the Delegated Regulation 2022/786 with regard to the liquidity coverage requirements for credit institutions under the Capital Requirements Regulation (CRR).
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying the criteria to identify shadow banking entities for the purposes of reporting large exposures.
The European Insurance and Occupational Pensions Authority (EIOPA) published a report assessing insurers' exposure to physical climate change risks
The Network for Greening the Financial System (NGFS) published two reports to aid central banks and regulators in their oversight of the financial sector and in their central bank operations
The European Commission (EC) published the results of a public consultation, held in October 2021, on the review of the Web Accessibility Directive.
The Monetary Authority of Singapore (MAS) and the SC-STS are jointly consulting, until June 10, 2022, on setting adjustment spreads for the conversion of legacy SOR contracts to SORA reference rate.
The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.
The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.
The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.