Pros and Cons

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The amount covered by HK's Deposit Insurance Scheme should be doubled to $200,000.
For	Against
it may prevent a run on banks in times of uncertainty more depositors will be covered instead of the current 84% people will have an incentive to save more money in banks	banks may need to pay more in premiums the amount is arbitrary: why not more than $200,000? banks may take on even greater risks

the amount is arbitrary: why not more than $200,000?
For	Against
The Irish government has decided to fully safeguard all deposits, bonds and debts in six banks and building societies for two years in the U.S., a similar scheme caps the amount at US$250,000

banks may take on even greater risks
For	Against
banks can make profits with little or no cost/ risk to them

it may prevent a run on banks in times of uncertainty
For	Against
	runs still occur; e.g. the run on the Bank of East Asia in September 2008 investors feel it is better to get their money back quickly by immediate withdrawal rather than apply for the scheme after a bank fails