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The following is issued on behalf of the Hong Kong Monetary Authority:
The Deposit Protection Scheme (Amendment) Ordinance 2010 (the Amendment Ordinance) has today (June 30) been passed by the Legislative Council.
The Amendment Ordinance amends the Deposit Protection Scheme Ordinance to provide for the implementation of the enhancements to the Deposit Protection Scheme (DPS) identified in a review conducted by the Hong Kong Deposit Protection Board (the Board) in 2009. The major enhancements include:
- raising DPS protection limit from the current HK$100,000 to HK$500,000;
- protecting secured deposits to enhance the clarity of DPS coverage;
- introducing cost mitigating measures to avoid the cost of providing better protection being transferred to depositors; and
- improving the efficiency of the Board in calculating and making compensation to depositors in a payout.
The Chairman of the Board, Professor Andrew Chan Chi-fai, said, "We are truly thankful to the Legislative Council for passing the Amendment Ordinance in time for the enhancements to take effect on January 1, 2011 as scheduled. With these enhancements, depositors will benefit from receiving better protection and faster compensation payment, and an improved clarity of the protection status of their deposits."
The Board has started to engage the banking industry to ensure smooth implementation of the various enhancements and will soon launch a publicity campaign to draw public attention to the impending changes to the deposit protection arrangement in Hong Kong.
For press enquiries, please contact:
Senior Manager (Payout and Publicity), Raymond Tsai, at 2878 1060 or
Manger (Publicity and Communications), Teresa Lai, at 2878 1305
Ends/Wednesday, June 30, 2010
Issued at HKT 18:08
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