Hong Kong is proposing to widen the safety net to protect more than 90 percent of the city’s bank depositors.
The Hong Kong Deposit Protection Board has proposed a wider safety to net to cover HK$800,000 ($102,000) per bank depositor, according to a statement. This marks an increase from the existing arrangement to protect HK$500,000 per depositor.
A three-month consultation period will commence for members of the public and interested parties to submit their views and comments on the matter.
92 Percent Protection
The deposit protection scheme (DPS) was launched in 2006 and is funded by banks. Deposit protection initially covered up to HK$100,000 before this was increased to HK$500,000 in 2011. Under the newly proposed cap, 92 percent of depositors in the city will be covered, up from 89 percent under the current cap.
«The board has taken into account a host of factors and seeks to strike a reasonable balance between enhancing protection to depositors and keeping the additional costs at a manageable level when considering the protection limit under the DPS,» said Daryl Ho, CEO of the Hong Kong Deposit Protection Board.
