HKSAR gov't welcomes passage of bill to optimize deposit protection scheme

HONG KONG, July 3 (Xinhua) -- The Hong Kong Special Administrative Region (HKSAR) government on Wednesday welcomed the passage of the Deposit Protection Scheme (Amendment) Bill 2024 by the Legislative Council of the HKSAR to implement various measures aimed at improving the Deposit Protection Scheme.

The measures include raising the protection limit from 500,000 to 800,000 Hong Kong dollars (about 64,000 to 102,400 U.S. dollars), as well as providing enhanced coverage to affected depositors upon a bank merger or acquisition.

The Deposit Protection Scheme (Amendment) Ordinance 2024 can help strengthen depositors' confidence, the resilience of the banking sector as well as the overall stability of the financial system, thereby reinforcing Hong Kong's position as an international financial center, said Christopher Hui, secretary for financial services and the treasury of the HKSAR government.

The ordinance will be gazetted on July 12 and will be implemented in two phases. The first phase will come into effect on Oct. 1, 2024 when the protection limit will stand at 800,000 Hong Kong dollars, and the second phase will start on Jan. 1, 2025.