HKMA proposes increased protection for bank depositors

Hong Kong aims to boost the maximum protection on bank deposits to better safeguard individuals during financial distress. The Hong Kong Monetary Authority (HKMA) proposes to raise the government guarantee limit from HKD500,000 (USD64,000) to HKD800,000 per depositor at each bank in case of bank failure. The changes, set to take effect from 2025, will cover both individual and corporate account holders. The move follows recent bank failures in the US that sparked worldwide discussions on depositor protection. The revised scheme will cover 92.2% of depositors, up from the current 88.6%, aligning more closely with international standards. This action is part of Hong Kong's broader effort to recover from the impact of long-term Covid-19 restrictions and revive its struggling economy.