The legislature yesterday passed the outline of an amendment bill on the city’s deposit protection system. The bill proposes that a depositor is entitled to be compensated for the balance in his or bank accounts – when the bank is unable to reimburse its depositors or has declared bankruptcy – without the need for the debts owed to the bank to be deducted from his or her balance.
According to Law 9/2012 on the city’s deposit protection system, the deposit protection mechanism is activated when the chief executive approves a decision by the Macau Monetary Authority (AMCM) which deems that the respective bank is unable, or appears to be unable, to reimburse its depositors.
The deposit protection mechanism is also activated when the court declares the bank bankrupt, according to the law.
