| Part D - Level of protection |
| Q32. |
What is the level of protection available under the DPS? |
| A32. |
The maximum level of protection under the DPS is HK$800,000 per depositor per Scheme member. |
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| Q33. |
Why is the protection limit set at HK$800,000? How is it compared to other major economies? |
| A33. |
After reviewing all relevant factors in the latest review of the DPS, the Board was of the view that raising the protection limit to HK$800,000 at this stage could suitably enhance protection to depositors and hence promote banking stability. In particular, the 60% increase in the protection limit to HK$800,000 will be more than sufficient to offset the cumulative impact of inflation since early 2011 (when the protection limit of HK$500,000 came into effect), and will enhance the real value of protection by as much as 20%. Moreover, more than 92% of depositors will enjoy full deposit coverage under the new protection limit, which is in line with international standards. In fact, a protection limit of HK$800,000 in Hong Kong is already significantly higher than the prevailing levels in many other Asian economies, while comparable to those in the European economies. |
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| Q34. |
If a bank fails, what would happen to that part of my deposit in excess of HK$800,000? Will I be compensated in any way for the excess portion? |
| A34. |
A depositor is entitled to make a claim for the remaining balance of his/her deposit in the liquidation of the failed Scheme member. |
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| Q35. |
If I have more than one deposit account in the bank, am I entitled to compensation up to a maximum of HK$800,000 for each of my deposit account? |
| A35. |
No. Each depositor is entitled to compensation only up to a maximum of HK$800,000 regardless of the number of deposit accounts he or she is holding in one bank. |
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| Q36. |
Will I have more protection if I divide my deposit and maintain it with different banks? |
| A36. |
Yes. You will have more protection under the DPS. |
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| Q37. |
If I have a personal account and a limited company account, will both accounts be protected up to a maximum of HK$800,000? |
| A37. |
Yes. Each separate legal entity will be protected up to a maximum of HK$800,000. |
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