Hong Kong Deposit Protection Scheme at 20: Coverage Raised to HK$800,000, Covering 92.5% of Depositors

Hong Kong, [Date] – The Hong Kong Deposit Protection Board (the Board) has announced that the Deposit Protection Scheme (DPS) will celebrate its 20th anniversary on 25 September 2026. Over the past two decades, the DPS has achieved significant improvements in coverage scope, operational efficiency, and public awareness, continuously helping to strengthen public confidence in the banking system.

Enhanced Coverage

The protection limit under the DPS has been raised twice:

• 2006: HK$100,000
• 2011: HK$500,000
• 2024: HK$800,000

Both increases outpaced cumulative inflation over the respective periods, thereby enhancing the real value of deposit protection.

Total protected deposits have surged sevenfold, from HK$452 billion in 2006 to HK$3,656 billion in 2025. Currently, the DPS provides full coverage to 92.5% of depositors, in line with international standards.

Improved Operational Efficiency

Since 2016, the DPS has adopted a gross payout approach for determining compensation amounts, significantly reducing the target payout timeline from 42 days to just 7 days. Since 2021, electronic payment methods (including Faster Payment System, or FPS) have been introduced for compensation disbursement, further shortening the payout process by one to two days compared to using only physical cheques.

Rising Public Awareness and Confidence

Public awareness of the DPS has increased from 67.2% in 2006 to approximately 80% in recent years. Public confidence reached a new high of 86.7% in 2025, reflecting the Board's effective and sustained efforts to enhance public understanding of the scheme.

Statements from Leadership

Ms. Lau Yin-shing, Chairperson of the Board, stated: "As the 'guardian of deposits,' the Board has done its utmost over the past two decades to ensure depositors can feel secure. As the DPS embarks on a new chapter, we look forward to further deepening its role, continuing to provide protection for depositors and contributing to the stability of Hong Kong's banking system."

Mr. Chan Yik, Chief Executive of the Board, said: "An effective and efficient deposit protection scheme is crucial to maintaining public confidence in the banking system. The Board will continue its efforts to ensure that the DPS remains effective in fulfilling its key function amid a rapidly changing financial environment."

20th Anniversary Initiatives

To mark the 20th anniversary of the DPS, the Board is launching a series of promotional and community education activities aimed at enhancing public awareness and confidence in the scheme. The Board has also updated its website to improve user experience, allowing the public and other stakeholders to browse and access information about the DPS more conveniently.