Description
The Fonds de Garantie des Dépôts et de Résolution is a key element in the “banking safety net” set up to guarantee the stability of the financial system as a whole. It supports and complements the central bank, banking and financial supervisors and public authorities in working to secure the financial sector and its customers.
This mechanism plays a crucial role in terms of financial stability: it prevents customers from giving into panic and rushing to a financial institution to withdraw their funds or assets, which would accelerate the phenomenon and potentially cause a chain of failures.