Hong Kong mulls raising deposit protection limit to HK$800,000

The raise is 60% higher than the previous protection limit of half a million dollars.

Hong Kong is considering raising the deposit protection limit to HK$800,000 following public consultations.

Citing 33 written submissions from various stakeholders and a public survey of over 1,000 residents in the city, the The Hong Kong Deposit Protection Board said that the proposed raise would translate to a 20% increase in real value deposit protection, and a 60% increase compared to the previous protection limit.

Currently, the protection limit is set at HK$500,000. 

Should the deposit limit be raised to HK$800,000, majority of depositors (over 92%) will enjoy full deposit coverage, which is reportedly in line with international standards, the board said.

The proposal to raise the limit is just one of the policy changes set forth by the board. Other policy recommendations include refining the levy system, expanding the requirement on the display of the DPS membership sign to digital channels; and streamlining the negative disclosure requirements on non protected deposits for private banking customers.

The board shared that whilst respondents generally welcomed and supported the proposed 
enhancements to the DPS,there were mixed views within the banking industry on the appropriate level of protection limit.

The board added that it will proceed to prepare legislative amendments based on the proposals in the consultation paper.