This Monday (9), the president of the Central Bank, Gabriel Galípolo, stated that the Banco Master case generated confusion and misinformation in the public debate, especially regarding the legality of offering above-market returns. At an event held by the Brazilian Association of Banks (ABBC), in São Paulo, he said that there is no rule that prevents a financial institution from carrying out this type of funding. Therefore, it would not be a justification for demanding the liquidation of the bank in itself.
At the time of the liquidation order, Master had only R$4 million in cash, compared to more than R$120 million in CDBs payable that were no longer covered by the Credit Guarantee Fund (FGC). From April 2025, the Central Bank began to act in coordination with the FGC, imposing restrictions on the institution. During this period, the fund began to fully honor maturing CDBs, at no additional cost.
“Master’s net funding covered by the FGC falls by R$9.2 billion in 2025. Non-covered funding falls by R$2 billion. And the shareholder’s contribution in cash or in conversions of financial bills exceeds R$2 billion”, said Galípolo.
For the BC president, the episode highlights regulatory challenges, even though there is no systemic risk in the country. He highlighted the increase in the number of institutions under supervision, amid the reduction in staff, and defended the debate on the monetary authority’s budgetary autonomy.
