As part of the Master case, the Central Bank has already liquidated six financial institutions since November 2025. The most recent was Will Bank, liquidated last Wednesday (21).
When a financial institution is liquidated, customers become creditors. To be able to recover the resources invested, it is necessary to resort to the FGC (Credit Guarantee Fund), which reimburses up to R$250,000 per CPF or CNPJ, for the total deposits and credits included in it in each associated prudential institution or conglomerate.
In the assessment of Abradeb (Brazilian Association for the Defense of Clients and Consumers of Financial and Banking Operations), the Master case serves as a warning for investors.
According to the entity, the choice of a financial institution should not be based solely on the profitability offered.
The entity highlights that investors must take three pillars into consideration when choosing where to invest their investment:
- 1 – solidity indicators;
- 2 – FGC guarantee; and
- 3 – profitability.
Strength indicators
Investors can look to public data to gain insight into the health and strength of the bank.
The most important are:
- Basel Index: the indicator measures the relationship between the bank’s own capital and third-party capital that is exposed to risk. In Brazil, the Central Bank requires a minimum of 10.5%, but a comfortable and safe index would be above 15%. The larger it is, the more capital the bank has to absorb unexpected losses.
- Credit Rating: Risk rating agencies such as S&P, Moody’s and Fitch assess a bank’s ability to honor its debts. A high rating (such as AAA or AA) indicates very low credit risk. Successive downgrades in an institution’s rating are a warning sign;
- Recurring Profits: Analyze the bank’s balance sheets to see if it shows consistent profits over time. This is a good indication of a healthy and sustainable operation.
FGC coverage
Another recommendation is to check if the bank has a guarantee from the FGC. The fund guarantees up to R$250,000 per CPF or CNPJ per institution in case of bankruptcy. Products such as CDB, LCI, LCA and current and savings account deposits are covered in the event of liquidation.
Profitability well above average
According to Abradeb, banks in financial difficulties can offer extraordinarily high rates of return to attract capital quickly. If an offer presents a profitability well above the average, it probably involves greater risk.
Safer investments
The entity also lists the safest type of investment. The association states that security is directly linked to the quality of the issuer.
Look:
- Direct Treasury Bonds (Tesouro Selic, for example): They are considered the lowest risk assets in the country, as they are 100% guaranteed by the Federal Government. The credit risk is practically zero, as the government is the issuer of the currency.
- CDBs, LCIs and LCAs from large banks (first-tier banks): Institutions with decades of history, high profitability and high Basel Indices offer great security. Furthermore, these products are guaranteed by the FGC.
- Savings: Although its profitability is generally lower, the savings account is very safe, being also guaranteed by the FGC and offered by solid financial institutions.
How do you know if the bank will be liquidated?
It is not possible to know exactly whether a bank will be liquidated, but there are signs that can be monitored by investors.
Find out what the main warning signs are:
- Falling Financial Indicators: A Basel Index that consistently falls quarter after quarter, approaching the regulatory minimum, is a sign. Balance sheets that report recurring losses must also be observed;
- Exaggerated Funding Fees: If a medium or small bank offers a CDB paying much higher than what large banks offer, this may indicate a need for cash to cover other obligations;
- Negative News and Rating Downgrade: Following the economic news can also help. Information about investigations, unexpected losses or credit rating downgrades by specialized agencies must be evaluated by the investor;
- Central Bank Intervention: The stage before liquidation is a special administration regime, such as RAET (Temporary Special Administration Regime).
