Government Deposit Guarantee for Hong Kong

Government Deposit Guarantee Template for Hong Kong

A comprehensive legal framework document establishing the terms and conditions of the deposit protection scheme in Hong Kong, outlining the government's guarantee of eligible deposits held in authorized institutions. The document details the scope of protection, operational procedures, and obligations of participating institutions under Hong Kong law, incorporating requirements from the Deposit Protection Scheme Ordinance and related banking regulations. It provides crucial guidance for financial institutions on compliance requirements, reporting obligations, and procedures for claim settlements, while ensuring alignment with Hong Kong's banking regulatory framework and financial stability objectives.

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What is a Government Deposit Guarantee?

The Government Deposit Guarantee document serves as the cornerstone of Hong Kong's deposit protection framework, providing essential security for depositors and stability for the banking system. This document is utilized when establishing or updating the relationship between the guarantee scheme and participating financial institutions, typically following legislative changes or periodic reviews of the deposit protection regime. It contains comprehensive details about coverage limits, premium calculations, operational procedures, and regulatory requirements specific to Hong Kong's banking environment. The document incorporates provisions from the Deposit Protection Scheme Ordinance and other relevant Hong Kong banking regulations, ensuring compliance with local legal requirements while maintaining alignment with international best practices in deposit insurance.

What sections should be included in a Government Deposit Guarantee?

1. Parties: Identifies the government authority providing the guarantee and the financial institutions covered

2. Background: Context of the guarantee scheme, its establishment, and legislative basis

3. Definitions: Comprehensive definitions of terms used throughout the document, including 'Protected Deposit', 'Scheme Member', etc.

4. Scope of Guarantee: Details of what deposits are covered, maximum coverage amounts, and any limitations

5. Eligibility Criteria: Requirements for financial institutions to participate in the scheme and for deposits to be eligible

6. Protection Mechanism: Process of how the guarantee works, triggering events, and payment procedures

7. Obligations of Scheme Members: Requirements and responsibilities of participating financial institutions

8. Premium and Funding: Details of premium calculations, payment schedules, and funding mechanisms

9. Claims Process: Procedures for making and processing claims under the guarantee

10. Information and Disclosure: Requirements for public disclosure and customer communication

11. Termination and Exit: Conditions and procedures for termination of membership or the entire scheme

12. Governing Law and Jurisdiction: Specification of Hong Kong law as governing law and jurisdiction details

What sections are optional to include in a Government Deposit Guarantee?

1. Foreign Currency Deposits: Special provisions for deposits in currencies other than Hong Kong Dollar, used when foreign currency coverage is offered

2. Special Account Types: Additional provisions for specific types of accounts (joint accounts, trust accounts, etc.), included when these require special treatment

3. Cross-Border Arrangements: Provisions for international banking groups or cross-border deposits, included for banks with significant international operations

4. Emergency Procedures: Special procedures for systemic banking crises or emergency situations, included based on regulatory requirements

5. Digital Banking Provisions: Special provisions for virtual banks or digital-only operations, included when relevant to participating institutions

What schedules should be included in a Government Deposit Guarantee?

1. Schedule 1: Premium Calculation Methodology: Detailed methodology for calculating premium contributions from scheme members

2. Schedule 2: Protected Deposit Types: Comprehensive list of deposit types covered under the scheme

3. Schedule 3: Operational Procedures: Detailed procedures for day-to-day operation of the scheme

4. Schedule 4: Reporting Requirements: Templates and specifications for required reports from scheme members

5. Schedule 5: Claims Processing Procedures: Step-by-step procedures for processing and paying claims

6. Appendix A: Standard Forms: Collection of standard forms for various scheme processes

7. Appendix B: Information System Requirements: Technical specifications for information systems and data exchange

8. Appendix C: Communication Templates: Standard templates for customer communications and public notices

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Hong Kong

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Banking

Financial Services

Financial Technology

Insurance

Asset Management

Public Sector

Regulatory Compliance

Financial Infrastructure

Relevant Teams

Legal

Compliance

Risk Management

Treasury

Operations

Regulatory Affairs

Corporate Governance

Finance

Audit

Customer Service

Corporate Communications

Government Relations

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Chief Risk Officer

Chief Compliance Officer

Head of Legal

Head of Regulatory Affairs

Treasury Manager

Compliance Manager

Risk Manager

Legal Counsel

Regulatory Reporting Officer

Operations Director

Banking Operations Manager

Deputy Chief Executive

Head of Banking Supervision

Deposit Protection Scheme Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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