The French Deposit Insurance and Resolution Fund (FGDR), or Fonds de Garantie des Dépôts et de Résolution, is the domestic bank deposit guarantee scheme in France that safeguards account holders in case of bank failures. Established in 1999, it is a legal entity under public law that operates independently and is supervised by the French Prudential Supervision and Resolution Authority (ACPR). The deposit guarantee scheme protects depositors by covering up to €100,000 per person, per institution, in case a bank is unable to meet its obligations to customers.
Deposit insurance plays a crucial role in ensuring financial stability and maintaining public confidence in the banking system. It minimizes the risks of bank runs, where customers withdraw their funds en masse due to concerns about a bank’s solvency, which can lead to a systemic crisis. By guaranteeing a certain level of deposits, deposit insurance acts as a safety net for account holders and mitigates the adverse effects of bank failures on the wider economy.
The FGDR is governed by a Management Board and a Supervisory Board. The Management Board, comprising of a CEO and two Deputy CEOs, handles the day-to-day operations and management of the FGDR. The Supervisory Board, composed of representatives from various sectors, ensures the effective functioning and financial soundness of the FGDR by providing oversight, guidance, and control.