| Part B - Hong Kong Deposit Protection Board |
| Q16. |
Is the Hong Kong Deposit Protection Board (the Board) part of the Government? If not, why doesn't the Government operate the DPS directly? |
| A16. |
No. The Board is not part of the Government. It is an independent statutory body established under the DPS Ordinance. The DPS is funded by the banking industry. It is more appropriate for the DPS to be operated by a statutory body independent of the Government.
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| Q17. |
Does the Board regulate banks in Hong Kong? What are the functions of the Board?
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| A17. |
No. The Board does not regulate banks in Hong Kong. Its main responsibilities are to collect contributions from Scheme members, invest the funds collected from Scheme members, make compensation to depositors when a Scheme member fails and recover compensation paid to depositors from the liquidator of the failed Scheme member. |
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| Q18. |
How many members does the governing board have? Who are members of the governing board? |
| A18. |
The governing board currently has nine members. Please refer to the Composition of the Board for details. They come from different professions including accounting, banking, consumer protection, insolvency law, investment, information technology and public administration.
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| Q19. |
Who appoint members to the governing board? |
| A19. |
Members of the governing board are appointed by the Financial Secretary under the delegated authority of the Chief Executive. |
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| Q20. |
Do members of the governing board receive any remuneration? |
| A20. |
No. |
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| Q21. |
Who is responsible for monitoring the operation of the Board? To which authority is the Board accountable? |
| A21. |
The Board is an independent statutory body established under the DPS Ordinance. It does not report to a particular Government Official. However, the Board is required under the DPS Ordinance to submit its budget to the Financial Secretary for approval every year. Its annual report and financial statements must be audited and laid before the Legislative Council for public scrutiny.
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| Q22. |
How does the Board perform its functions? How many staff members does the Board have? |
| A22. |
The Board is required under the DPS Ordinance to perform functions through the HKMA, unless it is otherwise directed by the Financial Secretary. The Board has around 20 staff members. Most of them are HKMA staff seconded to assist the Board to perform its functions.
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| Q23. |
Is the Board part of the HKMA? |
| A23. |
No. The Board is an independent statutory body. Because the Board is required to perform functions through the HKMA, the HKMA can be regarded as an executive arm of the Board. The work of the HKMA in relation to the administration of the DPS is subject to the scrutiny of the governing board. |
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| Q24. |
How can the Board make compensation to depositors with such a small staff force? |
| A24. |
The Board has engaged a network of payout agents, including accounting firms, IT service providers, payout agent bank, Hong Kong Interbank Clearing Limited, law firms, security printing firms and call centre, to help the Board determine and make compensation to depositors when necessary. |
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