ZA Bank welcomes deposit protection hike

Raising the limit will increases awareness and trust in virtual banks, ZA Bank said.

Hong Kong virtual bank ZA Bank, one of Hong Kong’s virtual banks, has welcomed the proposed enhancement of the deposit protection scheme. 

“ZA Bank welcomes and is closely monitoring the enhancements proposed by the Hong Kong Deposit Protection Board. The bank believes further raising the deposit protection limit from the current HK$500,000 to HK$800,000 will help to increase awareness and trust of virtual banking among bank users in general,” ZA Bank said in a statement. 

Increasing the protection limit means a better safeguarding of Hong Kong bank users’ interest, the virtual bank stated. 

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“As such, they can be more confident in experiencing the new products and services offered by virtual banks, which should further promote Hong Kong’s FinTech development driven by virtual banking,” ZA Bank added.

The Hong Kong Deposit Protection Board has recently issued a consultation paper on enhancements to the Deposit Protection Scheme (DPS), which proposes a HK$300,000 hike in the limit. This would reportedly cover 92% of depositors, up from just 89% currently.