20th Anniversary of Deposit Protection Scheme

On Thu, 24 Sep,

Background and Significance

The Deposit Protection Scheme (the "DPS") is set to mark its twentieth anniversary on 25 September 2026. Over the preceding two decades, the DPS has played an instrumental role in underpinning public confidence in Hong Kong's banking system through substantial enhancements in scope of coverage, operational efficiency, and public awareness.

Key Enhancements in Protection Coverage and Operational Efficiency

The following material developments have been implemented over the relevant period: (a) The per-depositor protection limit has been progressively increased from HK$100,000 in 2006 to HK$500,000 in 2011, and further to HK$800,000 in 2024. Each such increase exceeded the cumulative inflation rate over the corresponding period, thereby preserving and enhancing the real value of deposit protection; (b) The aggregate amount of protected deposits has increased seven-fold from HK$452 billion in 2006 to HK$3,656 billion as at 2025. Presently, approximately 92.5% of all depositors enjoy full coverage under the Scheme, a level consistent with international benchmarks; (c) The gross payout methodology for determining compensation has been adopted since 2016, effecting a material reduction in the target payout timeframe from forty-two days to seven days; and (d) Electronic payment channels, including the Faster Payment System, were introduced as disbursement mechanisms in 2021, further shortening the payout process by one to two business days relative to reliance on paper cheques alone.

Public Awareness and Confidence

In tandem with operational improvements, public awareness of the DPS has risen from 67.2% in 2006 to approximately 80% in recent years. Public confidence in the Scheme attained a record high of 86.7% in 2025, attributable to sustained promotional efforts by the Hong Kong Deposit Protection Board (the "Board") aimed at fostering greater public understanding.

Leadership Commentary

Ms Connie Lau Yin-hing, SBS, JP, Chairman of the Board, remarked: 'As the Guardian of Deposits, the Board has worked earnestly over the past two decades to ensure that depositors can save with confidence. With DPS entering its next chapter, I look forward to further reinforcement of its role in providing protection to depositors and supporting Hong Kong's banking stability.' Mr Donald Chen, Chief Executive Officer of the Board, stated: 'Having an effective and efficient DPS is key to maintaining public confidence in the banking system. We will keep up our efforts in ensuring that the Scheme continues to perform its important function efficaciously amid evolving financial developments.'

Public Engagement and Awareness Initiatives

In conjunction with the twentieth anniversary, the Board has undertaken a series of publicity campaigns and community education initiatives designed to enhance public understanding of, and confidence in, the DPS. The Board's website was concurrently revamped to improve user experience and facilitate more accessible dissemination of information regarding the Scheme to the general public and other stakeholders.

Annex: Visual References

The accompanying announcement included photographic materials depicting Mr Christopher Hui, Secretary for Financial Services and the Treasury (centre), Ms Connie Lau, Chairman of the Board (fourth from right), and Mr Donald Chen, Chief Executive Officer of the Board (fourth from left), together with members of the Board at the launch event for the DPS's twentieth anniversary promotional video. A further photograph depicted the twentieth anniversary promotional tram in transit across Hong Kong Island. The press release was issued by the Hong Kong Deposit Protection Board on 24 September 2026.