The optimal method of intervention for the FGDR is preventive intervention, which ensures that the problems of a bank or financial institution are dealt with before a failure occurs, so that customers are not affected and that service is not interrupted.
As this is not always possible, at the request of the Prudential Supervision and Resolution Authority (ACPR) the FGDR is able to pay customers of the failed institution compensation for their savings and other accounts and savings plans, and for the financial securities it protects.
Compensation process for savings and other bank accounts
Compensation within seven working days.
On the deposit “unavailability date”, the institution is declared as having failed. Customers lose access to their accounts and the institution goes bankrupt. Compensation by the FGDR is initiated by the ACPR.
Compensation process for financial securities
The compensation process is initiated when two conditions are met: the securities have disappeared from your accounts and the failed institution is unable to return or repay them. Compensation is then paid within three months.
Compensation process for performance bonds
The compensation process is initiated when a credit institution is no longer able to honour the performance bonds issued by it to business professionals (travel agents, real estate developers, etc.). The FGDR immediately assumes responsibility for the performance bonds and honours them if they are called.