FGDR Annual Reports

“The financial crisis that began in 2007, amplified by the euro zone crisis starting in 2010, was resolved in Europe seven years later through the agreement on the Banking Union in May 2014. In spring 2016, the European authorities began negotiations on the EDIS project presented by the Commission and, after seven years of reflection, a different proposal was put on the table in spring 2023, sparking a new series of discussions. With renewed talk of EDIS in the form of collective liquidity support, the link between sovereign risk and banking risk may be partially broken in 2024, 14 years after it materialised in the euro zone. Looking back on it, the guarantee of asset management services, enshrined in law at the end of 2007 and reaffirmed by a directive in 2009, was effectively implemented 14 years later, in 2022. This report mentions the outcome in late 2023 much to the FGDR’s satisfaction of the initiative to update the investor compensation scheme launched by it seven years earlier, at the end of 2016. One can’t help but think here of Billy Wilder’s unforgettable film The Seven Year Itch. Might there be times, over a seven-year cycle, when something must materialise or disappear – perhaps because it becomes necessary to direct one’s efforts towards other priorities? Or could this be specific to the deposit guarantee scheme, marked by the symbolism of the seven-day compensation period?

The magic of numbers that never ceases to charm and which, of course, we will only believe if we want to play along with it. But apart from this, without bothering about cycles, the Fonds de Garantie des Dépôts et de Résolution continues its work year after year, with a firm focus on protecting customers of the financial industry.”

Thierry DISSAUX - Chairman of the Executive Board                                                Michel CADELANO - Member of the Executive Board

Annual Report 2023, page 5