Deposit Protection Fund’s annual surplus up 11 pct

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The Deposit Protection Fund recorded a surplus of MOP68.9 million (US$8.6 million) for 2016, up 11.1 per cent year-on-year from MOP61.96 million in 2015, shows the Fund’s yearly report published yesterday in the Official Gazette.
According to the report, local banks’ contribution to the Fund amounted to MOP65.5 million in the year, an increase of 5.65 per cent year-on-year whilst the deposit interest that the body generated was MOP3.4 million, surging 90.5 per cent year-on-year from MOP1.79 million one year ago.
As at the end of 2016, the Fund’s accumulative surplus had totalled MOP268.2 million since its establishment in October, 2012.
The scheme, with a start-up allocation of MOP150 million from the government, seeks to protect residents’ deposits in local banks.
The law mandates that Macau-registered banks must pay an annual contribution of 0.05 per cent of the amount of protected deposits held. In the event of a bank failure the Fund would compensate depositors up to a maximum of MOP500,000.
In terms of expenses, the Fund spent some MOP80,000 for third-party services last year, surging 66.7 per cent year-on-year from MOP48,000, the annual report shows.