The Social Protection Fund for Bank Deposits (FOGADE) is an autonomous institute, attached to the Ministry of People's Power for Economy and Finance and whose responsibility is to guarantee public deposits held in banks and financial institutions in Venezuela . Faced with a severe insolvency crisis, the financial institution in trouble is intervened by the State and FOGADE acts as liquidator of the bank and its companies related to non-financial activities.


Venezuela had been dragging a severe economic crisis since 1982, when the economy began to be affected by policies that had caused severe distortions in all areas of the productive apparatus; the basic macroeconomic variables: inflation rate, interest rate, exchange rate and fiscal result were unbalanced, reaching their climax on the so-called Black Friday. All of this had an impact on the weakening of the country's financial system. The slowdown in economic activity affected the availability of resources of financial institutions and delayed the collection of their loans to industry and commerce, which caused delinquency in their portfolios and the immobilization of some loans. On the other hand, the acceleration of the inflationary process as a result of the application of an exchange control regime discouraged the propensity to save and caused part of the domestic savings to be channeled abroad.

The need to reestablish the climate of security to promote savings, made the idea of ​​creating a deposit insurance system prosper, which would allow - through an organization - to guarantee the money of savers in the event of the liquidation of financial institutions, such as It had already happened, between 1978 and 1982, with the emblematic National Discount Bank, the Agricultural Development Bank and the Banco de los Trabajadores de Venezuela. Thus, the Deposit Guarantee and Bank Protection Fund (FOGADE) was created on March 20, 1985 by decree 540 of President Jaime Lusinchi , to protect savers against a potential debacle of the national financial system.

In 1994, during the second presidency of Rafael Caldera , Venezuela experienced another severe economic crisis , considered the largest in the historical framework of that century. FOGADE then assumed an important role within the fundamental objective of safeguarding the interests of depositors and avoiding the collapse of the payment system of the national economy, acting as a settlement entity for the Latino, Principal, Ítalo, Consolidado, Profesional, Amazonas, Barinas banks. , Construction, La Guaira, Maracaibo, Metropolitano, Bancor and the Fiveca Financial Society.

Already during the presidency of Hugo Chávez in November 2009, FOGADE once again assumed its role as financial guarantor before savers, after the Superintendency of Banks intervened several private banking entities (see Economic Crisis of Venezuela 2009-2010 ) , after determining that they did not comply with a series of regulations related to the capital increase, without specifying the origin of the funds, in addition to discovering that some had serious administrative and managerial problems that generated a serious lack of liquidity, preventing them from meeting their obligations. FOGADE then liquidated the Canarias de Venezuela banks, Real, del Sol, Banpro and Baninvest, guaranteeing payment to each of the savers affected by the crisis.

Similar organisms

In Spain there is the Deposit Guarantee Fund created in 1977; in Mexico there was the Banking Protection Fund for Savings , created as a result of the 1982 Mexican crisis, both with similar purposes.

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