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48. Credit Guarantee Fund

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The Credit Guarantee Fund (FGC) is a private, non-profit entity whose mission is to protect depositors and investors in the event of intervention, liquidation or bankruptcy of a financial institution. The FGC is an extremely important entity for the stability and security of the National Financial System (SFN).

The FGC was created in 1995, at a time when Brazil was going through a period of restructuring of the financial system, with the bankruptcy of several institutions. The creation of the FGC was one of the measures adopted to bring more security to the system and investors. The entity is maintained by the financial institutions themselves, which contribute monthly with a percentage of the balances of accounts that are guaranteed by the FGC.

It is important to emphasize that the FGC is not a governmental institution, but a non-profit civil association. That is, it is not maintained with public resources, but with resources from the financial institutions themselves. This means that, if an institution fails, the damage is not borne by the government (and, consequently, by taxpayers), but by the FGC and, indirectly, by other financial institutions.

The work of the FGC is regulated by the Central Bank of Brazil, which is also responsible for supervising and inspecting financial institutions. The FGC acts as a kind of "insurance" for the investor: if the institution where he invested his money fails, the FGC guarantees reimbursement of up to R$ 250,000 per CPF and per financial institution, limited to a ceiling of R$ 1 million every 4 years.

This amount includes both the principal (invested amount) and the investment income. In the case of joint accounts, the amount is divided between the holders. The amount guaranteed by the FGC is enough to protect the vast majority of investors, as most people do not have investments greater than this amount.

The FGC guarantee covers most investment products offered by financial institutions, such as savings, CDB, RDB, LCI, LCA, among others. However, it is important to point out that some products do not have the FGC guarantee, such as stocks, investment funds, private pension plans, among others.

Another important point is that the FGC guarantee is only activated in cases of intervention, liquidation or bankruptcy of the financial institution. That is, if the investor decides to redeem his investment before the deadline and has to pay a fine for it, this fine is not covered by the FGC.

Furthermore, the FGC does not guarantee compensation for any financial losses that investors may incur as a result of the devaluation of their investment. That is, if the investor invests his money in a variable income product and the value of this product falls, the FGC does not cover this loss.

In summary, the FGC is an entity that brings more security to investors and to the financial system as a whole. It protects investors against the bankruptcy of a financial institution, guaranteeing reimbursement of up to R$ 250,000 per CPF and per institution. However, it is important that the investor is familiar with the FGC rules and knows which products are guaranteed by the entity and which are not.

For applicants, it is essential to understand the role of the FGC in the financial system and its main characteristics, as this is a subject that is often asked in public tenders in the banking area.

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