 Hong Kong SAR: Full Deposit GuaranteeLily Engbith ()
Journal of Financial Crises, 2022, vol. 4, issue 2, 335-351 Abstract: Following a run on Hong Kong's fifth-biggest bank in September 2008, the Hong Kong government announced that it would use its Exchange Fund to extend full insurance temporarily to depositors at approved banks. The existing Deposit Protection Scheme (DPS) would continue to insure the first 100,000 Hong Kong dollars (HKD; about USD 13,000) per depositor at each bank; the new program would cover the rest. It also covered a broader set of institutions. The Hong Kong Monetary Authority (HKMA) administered the program, overseen by the Hong Kong Deposit Protection Board (HKDPB); the HKMA was also responsible for managing the Exchange Fund, a standing reserve that was established in 1935. The Full Deposit Guarantee insured HKD 6 trillion during its operation. No claims were ever made. Upon its scheduled expiration on December 31, 2010, the government permanently replaced the existing DPS with an enhanced DPS, insuring deposits up to HKD 500,000. Keywords: account guarantee; Exchange Fund; Full Deposit Guarantee; Global Financial Crisis; Hong Kong (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ysm:ypfsfc:v:4:y:2022:i:2:p:335-351 Access Statistics for this article More articles in Journal of Financial Crises from Yale Program on Financial Stability (YPFS) Contact information at EDIRC. |
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