A bill seeking to amend the Deposit Protection Scheme Ordinance to implement enhancements identified in a review on the scheme has been gazetted.

The major enhancements include raising the scheme protection limit from $100,000 to $500,000, improving the clarity of its coverage by protecting secured deposits, and introducing cost-mitigating measures to prevent the additional costs required from being transferred to depositors.

Secretary for Financial Services & the Treasury Prof KC Chan said raising the scheme protection limit to $500,000 will bring the percentage of depositors fully covered to about 90%, which meets the higher end of international standards, and the level of deposit protection in Hong Kong closer to those in other major markets in absolute terms.

Other enhancements

The bill contains proposals to enhance the scheme's operating efficiency and provides for the making of additional rules by the Deposit Protection Board on the representation, disclosure and acknowledgement requirements in relation to deposits and other financial products. 

The detailed rules will be made in consultation with the banking industry and other parties, under the new powers to be introduced under the bill.

The bill will be tabled at the Legislative Council on April 21. Subject to its passage, the Government plans to implement the enhancements covered in the bill on January 1.