12 - DOES THE FGDR HAVE SUFFICIENT RESOURCES TO RESPOND TO A BANK FAILURE?

The FGDR currently has reserves of slightly more than €3 billion in equity that will be increased to approximately €5 billion by the end of 2023. The FGDR is able to deploy these resources at any time to respond to a bank failure. In addition, the FGDR can ask its members to make special contributions, and can borrow money.

 

Moreover, a preventative or resolution intervention allows the FGDR to protect significant deposit volumes, that far exceed the amounts that would need to be deployed for a compensation intervention, which is always more costly and traumatising.