| Part D - Level of protection |
| Q33. |
What is the level of protection available under the DPS? |
| A33. |
The maximum level of protection of the DPS is HK$500,000 per depositor per bank. |
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| Q34. |
Why is the protection limit set at HK$500,000? Is the protection limit too low? |
| A34. |
In light of the results of the review of the DPS completed by the Board in 2008, the protection limit was set at HK$500,000 per depositor per bank after extensive public consultation. With a protection limit of HK$500,000 per depositor, the DPS in Hong Kong is expected to be able to provide full protection to about 90% of depositors. This is in line with international standards. |
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| Q35. |
If a bank fails, what would happen to that part of my deposit in excess of HK$500,000? Will I be compensated in any way for the excess portion? |
| A35. |
The depositor is entitled to make a claim for the remaining balance of his deposit in the liquidation of the failed Scheme member. |
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| Q36. |
If I have more than one deposit account in the bank, am I entitled to compensation up to a maximum of HK$500,000 for each of my deposit account? |
| A36. |
No. Each depositor is entitled to compensation up to a maximum of HK$500,000 regardless of the number of deposit accounts he or she is holding in one bank. |
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| Q37. |
Will I have more protection if I divide my deposit and maintain it with different banks? |
| A37. |
Yes. You will have more protection under the DPS. But you will need to consider the inconvenience and the costs involved. |
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| Q38. |
If I have a personal account and a limited company account, will both accounts be protected up to a maximum of HK$500,000? |
| A38. |
Yes. Each separate legal entity will be protected up to a maximum of HK$500,000. |
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