A deposit insurance scheme proposed for Hong Kong banks won a conditional vote of approval from bank analysts yesterday. Mr Tsang said the Government planned a detailed study to identify measures to protect depositors' interests - 'including the possible introduction of deposit insurance'. Also under investigation, he said, was the feasibility of establishing a central credit register 'to enable banks to better assess the creditworthiness and overall indebtedness of their customers'. The measures were intended to complement reforms to the banking sector, said Mr Tsang, chief of which was the ongoing deregulation of the remaining interest rate rules covering time deposits and savings and current accounts. Responding to the comments on a deposit insurance scheme, an HSBC spokesman said the bank would have to wait and see what the proposed investigation required. 'Obviously we will give our views when we are approached,' he said. Bank analysts generally welcomed the introduction of a scheme along the lines of deposit insurance available to clients of US banks, and said it would add to the stability of the SAR's financial system. But some warned of the 'moral hazard' of such a scheme, saying it could tempt banks to make riskier investments.