Who is the legal representative of Fogafín?
The legal representative of Fogafín is its Managing Director.
How Fogafín is funded?
The resources used by Fogafín to cover its administrative expenses are own. These are originated of the commissions that are charged to the different funds that our institution manages and don't come from the taxpayers.
How does Fogafín work?
Fogafín protects depositors’ savings with the objective of preserving the financial system stability. Fogafín also acts as a resolution authority, reason why is has the power to use a broad number of tools to reduce the adverse effects of a financial crisis.
What is the financial safety-net?
The financial safety-net is composed by the Ministry of Finance, the central bank (Banco de la República), the Financial Supervisor (Superintendencia Financiera de Colombia) and Fogafín.
What is resolution mechanism?
According to the EOSF (Banking Law), it is a tool that can be used by the Financial Supervisor to resolve a failed institution
Apart from reimbursing depositors after a liquidation process, does Fogafín have any other related activities?
Fogafín appoints and monitors the activities carried out by the liquidators of any type of financial institution.
What is Deposit Insurance?
The deposit insurance is a mechanism that protects depositors’ savings when a bank fails (is subject to liquidation by the Financial Supervisor).
What are the benefits of Deposit Insurance?
Deposit Insurance contributes to protect the stability of the financial sector and fosters depositors’ confidence.
How is Deposit Insurance acquired?
The Deposit insurance is a characteristic of the savings products offered by member institutions; depositors don’t have to apply for it. Depositors, whether individuals or corporate entities, are beneficiaries of this insurance by the simple fact of opening or renewing an insured product.
Which are the member institutions?
The member institutions registered in the Deposit Insurance are all commercial banks and SEDPES (providers of electronic products only). The list of member institutions can be seen in the following link
How much does it cost?
Coverage is free and automatic.
When is the payment of Deposit Insurance made effective?
Deposit Insurance is paid when there’s a failure of a member institution and deposits are covered.
What is the limit covered by Deposit Insurance?
Currently, the maximum coverage of the insurance is COP 50 million per depositor, per member institution.
What is the targeted time to reimburse deposits after an institution fails?
Fogafín’s objective is to reimburse deposits as soon as possible. Our current targeted time to start the payout process is 7 business days.
Term deposits (CDT)
What’s not covered?