Hong Kong bank depositors will now have increased protection for their deposits as the first phase of enhancements to the Deposit Protection Scheme (DPS) takes effect.
The changes, effective from 1 October, raise the protection limit from HK$500,000 to HK$800,000 per depositor per bank.
The enhancements also include adjustments to the levy system to ensure the DPS Fund reaches its target size within a reasonable timeframe under the increased protection limit.
Additionally, there are streamlined disclosure requirements for private banking customers regarding non-protected deposit transactions.
The board is also preparing for the second phase of enhancements, which will take effect in January 2025.
These measures include providing enhanced coverage for affected depositors during bank mergers or acquisitions and requiring scheme members to display the DPS membership sign on their electronic banking platforms.
Connie Lau Yin-hing, Chairman of the Hong Kong Deposit Protection Board, said,
“We are pleased to see the smooth implementation of the first phase of enhancement measures. In particular, bank depositors will now be able to benefit from increased protection of up to HK$800,000.
We have embarked on a series of promotional campaigns to raise public awareness of the enhanced DPS, and will continue to work closely with the banking industry to ensure the smooth implementation of the second phase of the enhancement measures in January next year.”