Economic Trend News
- Deposit scheme enhances public confidence in HK: Survey
Date: 25-Sep-2007 Sources: (People's Daily)
A survey released here on Monday found that the deposit scheme enhanced public confidence in Hong Kong's banking system.
The survey, conducted by Hong Kong Deposit Protection Board, showed that 67 percent of respondents were aware of the scheme, and among them, 76 percent knew the maximum protection limit is 100,000 Hong Kong dollars (about 12,800 U.S. dollars).
With the exception of a few overseas-incorporated banks which are covered by a similar scheme in their country of incorporation, all licensed banks in Hong Kong are members of the scheme. The scheme protects customers' eligible deposits held with banks in Hong Kong which are members of the scheme. It will pay the customers compensation up to a limit of 100,000 Hong Kong dollars if the bank with which the customers hold their eligible deposits fails.
Positive responses were gathered in areas including the perceived level of security of deposits at banks, and confidence in small to medium-sized banks.
'The successful launch of the scheme last year marked an important milestone in the development of the financial safety net in Hong Kong. Building on a strong foundation established in the past year, we will continue to refine and enhance the functioning of the scheme to contribute to the well-being of depositors and the financial stability of Hong Kong,' Chairman of the Board Andrew Chan said.
Board's Chief Executive Office Raymond Li said that apart from maintaining the scheme's efficient operation, the board will work on strengthening public understanding of it. The board will also seek to enhance the campaign's effectiveness by diversifying the channels and means for disseminating the board's messages.
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