The Deposit Protection Board is seeking public views on the review of the Deposit Protection Scheme.

Although Hong Kong's deposit protection scheme's design features already comply substantially with international best practices, the board said enhancements can be introduced to improve protection to depositors and strengthen the scheme's operation.

The key recommendations are:

* the scheme's protection limit be raised from $100,000 to $500,000;

* its product coverage be expanded to cover secured deposits referable to the provision of banking and financial services;

* the rates for charging contribution on banks be halved to neutralise the cost impact of raising the protection limit; and,

* no changes be made on the basis for calculating deposit compensation, types of institutions covered by the scheme and the current arrangement of excluding structured deposits from protection.

For more details click here. People should send their comments to the board by June 26.