Hong Kong’s Deposit Protection Scheme, which helps bolster confidence in the banking system, is celebrating its 20th anniversary on Friday.
Over the past 20 years, the scheme has seen significant enhancements in coverage, operational efficiency and public awareness.
Protection limit was increased from HK$100,000 in 2006 to HK$500,000 in 2011, and further to HK$800,000 in 2024, which exceeded cumulative inflation over the corresponding periods, thereby enhancing the real value of deposit protection.
Total amount of protected deposits has grown by seven-fold from HK$452 billion in 2006 to HK$3.7 trillion in 2025.
Currently, 92.5 percent of depositors are fully protected, which is in line with international standards, the Hong Kong Deposit Protection Board said in a statement.
Public awareness of the scheme increased from 67.2 percent in 2006 to around 80 percent in recent years, and public confidence in the DPS reached a record high of 86.7 percent in 2025,
This is a result of continued efforts of the board to promote understanding of the DPS, it said.
Gross payout approach in determining compensation has been adopted since 2016, which has substantially shortened the target payout timeframe from 42 days to seven days, it said.
Electronic payment channels, including the Faster Payment System, for disbursing compensation have been added since 2021, which can further shorten the payout process by one to two days as compared with the use of paper checks alone.
Riding on the 20th anniversary of the scheme, a number of publicity and community education initiatives to enhance public understanding of and confidence in the system, the statement said.
