The total value of deposits under the Hong Kong Deposit Protection Program rose to a record HK$3.656 trillion in 2025, from HK$3.492 trillion the previous year, according to the Hong Kong Deposit Protection Board’s annual report.
The increase comes after the protection limit was increased from HK$500,000 to HK$800,000 in October 2024.
The board said the change initially increased the total value of deposits under the scheme by 35%, after which the amount increased by a further 5% until October 2025.
The scheme now fully protects 92.5% of depositors’ balances; The Board stated that this level brings Hong Kong into line with international standards.
As of the end of March 2026, the program had 147 members, of which 32 were local and 115 were banks established outside Hong Kong.
Retail banks held HK$3.55 trillion, or 97%, of protected deposits, while wholesale banks accounted for the remaining 3%.
The 20 largest scheme members held 95% of total protected deposits in the sector, while the five largest members accounted for 70%.
Under the programme, each depositor’s total deposit at the member bank is automatically protected up to HK$800,000.
The program covers deposits in Hong Kong dollars, renminbi and other currencies.
Structured deposits, offshore deposits, deposits with a maturity of more than five years, bonds, stocks, mutual funds, insurance policies, virtual assets and stored value facilities are excluded.
The Deposit Protection Scheme Fund had assets of HK$8.9 billion as of end-March 2026. Approximately 23% of the fund was invested in Exchange Fund papers and 44% in U.S. Treasury securities, while the remainder was held predominantly in Hong Kong dollar deposits.
The fund earned a 3.45% return on investment for the year.
Contributions collected from program members for 2026 reached HK$871 million, up 5% from 2025. The top 20 members accounted for approximately 94% of total contributions.
The Board also conducted a full-scale payment rehearsal in 2025-2026 under a simulated bank failure scenario.
Practice has shown that most eligible depositors can be compensated within the Board’s seven-day target, with electronic payments expediting payment by one to two days compared to paper checks.
A major payment exercise planned for next year will focus on using the Fast Payment System to pay compensation in the event of bank insolvency.
The board’s annual public survey showed that public awareness of the program remained at 80%, while trust in the system reached a record level of 86.7%.
