Bank deposit: the safety fund for savers has never been so provided

Posted Apr 19, 2022, 6:26 AM

This is a direct consequence of the 2020-2021 health crisis. For fear of the future, the French set aside at an unprecedented rate, dramatically inflating bank deposits. This savings frenzy is reflected today in the Deposit Guarantee and Resolution Fund (FGDR): never before has this security tool, whose role is to protect customer deposits, progressed so quickly and reached such a high outstanding amount, learned “Les Echos”.

According to figures published on Tuesday by the FGDR, the fund’s resources have increased by nearly 15% between 2020 and 2021. They now reach 6.1 billion euros, the bulk (5.8 billion) corresponding to the protection bank deposits from French establishments (the fund also provides a guarantee for securities and sureties).

close to target

This increase is financed by the banks, via contributions, calculated according to the evolution of deposits and the target to be reached for the fund. “The net contributions raised by the FGDR amounted to a total of 770.40 million euros”, including 758.42 million for the deposit guarantee, writes the FGDR in its annual report.

“The European rule is that in June 2024 the various national funds are between 0.5 and 0.8% of the deposits covered”, recalls Thierry Dissaux, chairman of the executive board of the FGDR. “We decided to target the 0.5% threshold from 2023, and we were already at 0.44% last year. »

For the record, the FGDR has just implemented a European rule at national level: all citizens of the Union are covered up to 100,000 euros of deposits per bank, in the event that the establishment goes bankrupt. Customers must be compensated within seven working days. In France, at the end of 2021, 1.417 billion euros were thus covered by this system.

stay in balance

While waiting to be used – it has only very rarely been used in France – the fund must remain in balance, and the sums deposited are therefore invested. “Our management mandate is security and liquidity. The performance achieved is a by-product of this core objective”, emphasizes Thierry Dissaux. In a climate of particularly low interest rates, the fund generated a return of 1.58%, with a small equity component (5% of assets in historical value) by itself compensating for the sluggishness of bond and money market investments.

In its management, the organization has also accentuated its responsible shift, in particular by classifying all its bond funds under “Article 8”, a European regulation aimed at providing more transparency. “It is a deliberate desire linked to our deep image, we are a crisis operator at the service of sustainable finance”, explains Thierry Dissaux.

Known, as the Samu

The challenge is of course ethical, but also related to communication: a little like the Samu, which must be known to everyone to be effective, the FGDR monitors the audience of its website very closely, its popularity on social networks and its notoriety. For the time being, according to a barometer conducted with the Harris Interactive institute, 53% of French people say they know of the existence of a deposit guarantee mechanism (+9% since 2016). “Confidence in the banking system is strong in France, but this confidence is increased among those who know us”, underlines the leader.

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