The system of deposit guarantees is considered to be an important factor of stability of the banking sector. Bank deposits in France, like in other EU member states, are secured by guarantees. However, until 1999 there existed nine different guarantee systems which, in the event of a bank's bankruptcy, allowed the depositor a compensation of up to FFr 400,000 (approx. euro 67,000). Within one of the main guarantee system, the ABF, which covered commercial banks, funds required to pay the compensation were only raised after a bank had actually gone out of business. Those funds were derived from contributions by banks, proportional to the amount of deposits accumulated. In 1999, the French deposit guarantee system was reformed, and a single Deposit Guarantee Fund was created. All banks operating in France are obliged to participate in the Fund, which is managed by representatives of the banking community. The Fund cooperates with the banking supervision body, but is independent of it. Financial resources of the Fund are generated through the issue of Member's Certificates of Deposit and annual contributions by the banks. The contributions are paid ex ante, i.e. before any bankruptcy actually takes place. Novel solutions include tying the contributions not only to the amount of deposits accumulated by a given bank, but also the risk associated with it. The degree of risk is evaluated according to several measures. The main task of the Fund is to provide compensation of up to 70,000 euros as well as prevent of bank bankruptcies.