Hong Kong Deposit Protection Scheme Covers HK$3.6T in 2025-26

The Hong Kong Deposit Protection Board (HKDPB) announced that the Deposit Protection Scheme (DPS) now covers HK$3.6 trillion in eligible deposits, according to its 2025-2026 Annual Report released on July 10. Public confidence in the scheme hit a record 86.7%, while awareness levels remained high at 80%, underscoring its success in maintaining financial stability in Hong Kong.

The DPS, which provides protection of up to HK$800,000 per depositor per bank, plays a critical role in safeguarding the city’s banking system. The increased coverage limit, implemented in January 2025, reflects the Board’s commitment to adapting to evolving market needs. The scheme’s robust adoption figures and rising confidence metrics indicate its growing effectiveness as a financial safety net.

A standout achievement for the 2025-2026 period was the successful execution of a full-scale payout rehearsal. This operational stress test ensures the Board’s ability to swiftly and reliably compensate depositors in the event of a bank failure, a cornerstone of its mandate.

Riding on the scheme’s 20th anniversary in September 2026, the HKDPB plans to roll out a series of promotional initiatives. These efforts aim to deepen public understanding of the scheme and its significance to Hong Kong’s financial system. This milestone comes amid broader efforts to solidify depositor trust, including ongoing public education campaigns and increased transparency via annual reporting.

The DPS was initially launched in September 2006 as part of Hong Kong’s financial stability architecture, complementing the prudential supervision of the Hong Kong Monetary Authority (HKMA). Over the years, the scheme has evolved to meet market demands, with the latest enhancements—including the higher deposit protection cap—marking a significant step forward.

In a related move, the HKSAR Government announced a reappointment to the HKDPB Board on June 26, ensuring continuity in governance as the scheme enters a crucial period. This aligns with the Board’s focus on resilience and reliability, as demonstrated by the operational test conducted during the reporting year.

The full 2025-2026 Annual Report is available on the Board’s official website (www.dps.org.hk), offering comprehensive insights into its achievements and future plans. The 20th anniversary celebrations in September 2026 are expected to highlight the scheme’s evolution and its enduring role in bolstering public confidence in Hong Kong’s banking system.

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