Hong Kong may raise deposit protection cap to HK$1 million next year
Hong Kong is considering raising the Deposit Protection Scheme cap to HK$1 million per depositor next year, according to local media. The HKMA is surveying banks on deposit sizes, with results due by late January 2027.
Hong Kong may raise the Deposit Protection Scheme (DPS) cap to HK$1 million next year, local media reported, as the Hong Kong Monetary Authority (HKMA) surveyed banks in mid-month to gather deposit sizes and customer number data ahead of the DPS review.
Banks are required to submit the returns by late January next year, covering four deposit bands of HK$800,000, HK$1 million, HK$1.5 million and HK$2 million.
The current DPS cap stands at HK$800,000 per depositor at each scheme member bank. It is reported that the banking sector sees a higher chance of lifting the cap to HK$1 million than that during a consultation three years ago, a move that would help smaller and mid-sized banks sharpen their competitiveness in wealth management.
The HKMA said it will conduct another review of the DPS in 2027 before wrapping up the work in the following year and considering whether adjustments are needed in light of the latest global and local developments.
The Deposit Protection Board's data collection from member banks is a regular arrangement.
