The Hong Kong Deposit Protection Board (the Board) has completed a consultation on enhancements to the Deposit Protection Scheme (DPS). Proposed enhancements to the DPS are highlighted below:

• Protection limit – raising the protection limit from the HK$500,000 to HK$800,000.
• Levy system – switching back to the build-up levy to cater for a higher protection limit, with the build-up levy rates kept unchanged.
• Deposit protection arrangements in the event of a bank merger or acquisition – providing enhanced coverage to affected depositors for at least six months upon a bank merger or acquisition.
• Representation regime – requiring the display of the DPS membership sign on the electronic banking platforms of Scheme members, and streamlining negative disclosure requirements on non-protected deposit transactions for private banking customers.