The HKMA issued a press release on 6 February 2024 in relation to the consultation conclusions on the enhancements to the Deposit Protection Scheme (“DPS”).
The Hong Kong Deposit Protection Board (the “Board”) launched a three-month public consultation on 13 July 2023. In the consultation paper, the Board set out a number of policy recommendations, including (i) raising the protection limit; (ii) refining the levy system; (iii) enhancing the deposit protection arrangements in the event of a bank merger; (iv) expanding the requirement on the display of the DPS membership sign to digital channels; and (v) streamlining the negative disclosure requirements on non-protected deposits for private banking customers.
On 6 February 2024, the Board published the conclusions on the public consultation, containing the major comments received and the Board’s response to those comments.
Having carefully considered all the comments received and relevant factors, the Board considers that raising the protection limit from HK$500,000 to HK$800,000 is sufficient at this stage suitably to enhance protection of depositors. The Board will proceed to prepare legislative amendments based on the proposals in the consultation paper.
For the press release, please see here. To access a full copy of the report on consultation conclusions, please see here.
