The Deposit Protection Board on Thursday said it wants to increase the amount of money protected in people's bank accounts, from HK$500,000 to HK$800,000.

At a press conference, the board’s CEO Daryl Ho said the move would help keep up with inflation, being as the current guarantee cap was set in 2011.

The change wouldn't come into effect, however, until 2025.

Ho said guaranteeing saving pots of up to HK$800,000 would mean 92.2 percent of depositors would be fully covered in the event their bank went bust.

"We are trying to strike a balance between increasing the level of protection and maintaining a reasonable cost, especially the cost imposed on the banking sector through collecting more levy to satisfy the funding needs of the scheme," he said.

Ho said to cover the guaranteed amounts, the banking industry would need to contribute an extra HK$150 million for a few years, adding the board has received positive feedback from banks about the plan.

He said the board doesn't think the cap should be even higher, as the cost for banks would increase disproportionately.

Ho also explained why it will take time to make the change.

"There will be a legislative procedure that we need to go through.... it also takes some time to do market consultation and collect feedback from the public and stakeholders."

The board will accept views on the plan until October 12.