Hong Kong deposit protection may rise to HK$1 million
On.cc · 2 SOURCESabout 2 hours ago2 MIN
Summary
Hong Kong’s deposit protection scheme may be heading for another adjustment after banks were reportedly asked this month to provide data on deposit sizes and customer numbers across four protection bands: HK$800,000, HK$1 million, HK$1.5 million and HK$2 million. The Hong Kong Monetary Authority said the scheme will be reviewed again during 2027, with the related work to be completed in the following year. The current protection limit is HK$800,000 per depositor at each member bank, after an increase that took effect in October 2024. Banking-sector views cited in the reports suggest the odds of a rise to HK$1 million are higher than during consultations three years ago.
Key Points
- Reports said the HKMA sent questionnaires to banks in mid-October, seeking deposit volume and customer-count data at HK$800,000, HK$1 million, HK$1.5 million and HK$2 million levels.
- Banks have been asked to reply by the end of January, and the industry believes the exercise is preparation for next year’s review process.
- In response to media enquiries, the HKMA said it will review the deposit protection scheme during 2027 and complete the related work within the following year.
- The Deposit Protection Board’s collection of data from member banks is understood to be a regular arrangement rather than a one-off exercise.
- The protection ceiling rose from HK$100,000 in September 2006 to HK$500,000 in January 2011, and then to HK$800,000 in October 2024
Why It Matters
Any increase in the protection cap would affect how much cash savers can keep under the statutory safety net at each member bank, which matters for households and small businesses managing bank balances. The banking industry also sees a higher ceiling as potentially helping smaller and mid-sized banks compete more effectively in wealth management.