The answer depends, of course, on the country in question: sometimes banks are the sole contributors, sometimes (rarely) the state alone assumes this guarantee as part of its functions, and sometimes a co-financing system is put in place. In France, until now, banks have contributed to the deposit guarantee fund (FGD) each year as members of the fund, thereby determining the institution’s resources. These resources currently amount to €1.45 billion. Is this sufficient, given that the coverage « promised » by the fund amounts to €100,000 per person for all accounts held by that person in the same banking institution and €75,000 per investor according to the same scheme? What actually happens if the fund does not have enough reserves? The FGD website states that « while the level of its resources is still set by regulation, the amount of contributions called in cannot jeopardize the stability of the banking system. The FGD may also borrow or provide guarantees. « It is therefore quite conceivable that in the event of a shortage of funds, the government would intervene in some way (e.g., loans to the deposit guarantee fund).
J.P.
