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Deposit Insurance in Hong Kong

Deposit Insurance in Hong Kong. Deposit Protection Scheme in HK. Commencement on 25th of Sept 2006 Governing by Deposit Protection Scheme Ordinance (Cap.581) Compensation limit is set at maximum HK $100,000. Deposit Protection Scheme in HK.

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Deposit Insurance in Hong Kong

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  1. Deposit Insurance in Hong Kong

  2. Deposit Protection Scheme in HK • Commencement on 25th of Sept 2006 • Governing by Deposit Protection Scheme Ordinance (Cap.581) • Compensation limit is set at maximum HK $100,000

  3. Deposit Protection Scheme in HK • Both Hong Kong dollar and foreign currency deposits are protected • The fund will be built up through the collection of contributions from Scheme members • Differential contributions will be assessed based on the supervisory ratings of individual Scheme members

  4. The duties & responsibilities of DPS Board • Collect premiums • Manage the DIS Fund • Assess claims • Make compensation payments • Make rules relating to the procedures for making claims and payouts

  5. The Deposit Insurance in the world • Total 44 Countries • Albania, Quebec, Morocco, Sudan, Bulgaria, Canada, Taiwan, Romania, Russia, Bosnia and Herzegovina, India, Tanzania, Trinidad and Tobago, Japan, Bahamas, Czech Republic, Vietnam, Zimbabwe, Kenya, USA, Nicaragua, Venezuela, Colombia, Peru, France, Brazil, Hong Kong, Indonesia, Lebanon, El Salvador, Mexico, Jamaica, Jordan, Kazakhstan, Korea, Malaysia, Hungary, Nigeria, Philippine, Turkey, Argentina, Singapore, Sweden, Ukraine

  6. Deposit Insurance – USA

  7. Background Federal Deposit Insurance Corporation (FDIC) • United States government corporation Start in 1933 ( Great Depression ) • bank runs (4004 banks) • depositor lose of confidence • Arthur Vandenberg, Henry Steagall restore confidence

  8. FDIC • Independent agency • Protect depositor against loss • Provides deposit insurance  taken by banks • Meet high standards (financial strength, stability)

  9. Insurance • Insured  tradition types of bank account e.g. checking, saving, trust, CDs etc…  legal limit of $100,000 per depositor per insured bank • Uninsured  investment products e.g. mutual funds, stocks, bonds

  10. Deposit Insurance –Taiwan

  11. Deposit Insurance –Taiwan The policy goals: • Safeguarding the benefits of depositors in financial institutions • Promoting savings • Maintaining an orderly credit system • Enhancing the sound development of financial operations

  12. Taiwan Deposit Insurance System

  13. Participating Institutions

  14. Insured Deposits

  15. Uninsured Deposits

  16. Deposit Insurance –Japan

  17. Deposit Insurance Corporation of Japan • Established in 1971 • The limited coverage of ￥1 million • April 2002 • The limited coverage of ￥ 10 million

  18. Insurance Pay-out method • Occurrence of insurable contingency. • Notification of contingency • Submission of data on depositors • Calculation of the insurance (Max: ￥10 million per depositor ) • Decision on payment of the insurance and details of public announcement • Public Announcements • Insurance Payment Notification • Claim for the insurance payment

  19. Financial Assistance • When a financial institution fails, DICJ may extend financial assistance • Facilitate the transaction

  20. Financial Assistance Method of financial assistance: • Purchases assets • Partial Business Transfer • Monetary grant • Subscribing of Preferred Shares

  21. Summary In Hong Kong, Japan, Taiwan & USA

  22. Summary (1) • The objectives of the deposit insurance systems protect depositors and contribute to financial system stability • Legally separate organizations, rely on a board of directors • The membership is compulsory and is extended to institutions subject to effective supervision and regulation • Covering savings deposit products and excluded coverage of non-deposit products

  23. Summary (2) • Funding is provided in some ways such as through government appropriations, premiums assessed against member banks… • To reimburse depositors as quickly as possible. Reimbursement depends on the bank deposit records

  24. Conclusion

  25. Survey

  26. 不知道 34% 知道 66% Content of the survey 您知道什麼是「存款保障基金計劃」嗎﹖

  27. 不知道 40% 知道 60% Content of the survey 您知道「存款保障基金計劃」已經在香港實行嗎﹖

  28. 足夠 19% 不足夠 81% Content of the survey 你認為政府/金管局對「存保計劃」的宣傳及教育足夠嗎﹖

  29. 不會 25% 會 75% Content of the survey 您認為此計劃的實行會令您增加對銀行的信心嗎﹖

  30. Content of the survey 你會因此而挑選一些已參與「存保計劃」的銀行開戶存款嗎﹖

  31. Content of the survey 你認為「存保計劃」的監管足夠嗎﹖

  32. 足夠 26% 不足夠 74% Content of the survey 「存保計劃」的存款保障最高只有十萬元，你認為足夠嗎﹖

  33. Content of the survey 你認為存款保障金額應該是多少﹖

  34. Content of the survey 有些已參與「存保計劃」的銀行以高息吸引客戶，你會因此而將存款轉存於這些銀行嗎﹖

  35. The conclusion of the Survey

  36. -The End-

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