Conceptually, a deposit insurance fund is part of a wide safety net for financial systems. This net also involves prudential regulations, efficient oversight, legislation, proper management practices, and proper accounting and transparency methodologies to disclose information to the population.
The international experience shows that deposit insurance funds used to play the role of insuring deposits (paybox) in the event institutions went into liquidation (the so-called ex-post funding). More recently, they have added other roles to their scope of operations, such as providing financial assistance to member institutions and support via the so-called market solutions (ex-ante funding). "Stabilization funds" have recently been created in some countries for that same purpose.
In Brazil, in keeping with these best international practices, the (commercial banks') FGC has been playing a relevant role towards contributing to the stability of the National Financial System by guaranteeing deposits and providing financial assistance to institutions facing occasional liquidity hardships, in addition to providing market solutions.
The Cooperative Credit Guarantee Fund (FGCoop) has been created with those same goals in mind.
On October 30, 2012, via Resolution no. 4150, the National Monetary Council (CMN) set the requirements and minimum characteristics of the cooperative credit guarantee fund.
The document guided the cooperative credit system's preparation of FGCoop's articles of organization and bylaws– both approved by the Members' Meeting that created the fund and held on September 27, 2013, and then by the CMN via Resolution no. 4284 of November 5, 2013.
FGCoop is a non-profit civil association with its own legal personhood, governed by private law, and operating across the entire country, whose members comprise all single credit unions and two cooperative banks: Bancoob and Banco Sicredi.
Confederations and central cooperatives comprising credit unions are members whole sole purpose is to represent single unions, and such confederations and central cooperatives are not entitled to being guaranteed, assisted, or financially supported by FGCoop in any way.