The president of the Central Bank stated that the bank had only R$4 million in cash, with more than R$120 million to pay in CDBS that were no longer covered by the FGC
The president of the Central Bank, Gabriel Galípolo, stated this Monday (9), that the monetary authority conducted “well-founded” due diligence until deciding on the extrajudicial liquidation of Banco Master, in November last year.
In a panel during an event organized by the Brazilian Banking Association (ABBC), Galípolo said that, when the liquidation was decreed, the bank only had R$4 million in cashwith more than R$120 million to pay in CDBS that were no longer covered by the Credit Guarantee Fund (FGC).
From April last year, the BC worked in coordination with the FGC to impose a series of restrictions. At that moment, the FGC began to pay CDBs that were maturing in full 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.
“So, thanks to this coordinated work together with the FGC, it was possible to create a well-prepared process of rejecting the purchase by BRB Banco de Brasília and also the vote to liquidate the Master”, he highlighted.
For Galípolo, the Master case illustrates the difficulties in regulationeven though Brazil does not face a systemic risk. The Central Bank has experienced a significant increase in the number of institutions under supervision, amid a reduction in staff, he highlighted.
The central banker also defended the discussion on the BC’s budgetary autonomy. “The Central Bank does not want to spend a penny that does not pass public scrutiny”, he highlighted.
Galípolo also stated that 2025 was a year in which the monetary authority needed to reinforce both sides of the central mandate, monetary policy and financial stability. “It was a period of challenges presented to the BC”, he pointed out.
He reinforced the importance of “not leaving gaps” in the narratives, at a time when rumors circulate quickly throughout society. In this sense, transparency emerges as one of the greatest challenges for central banks worldwide, he highlighted.
The central banker thanked the financial sector associations that declared support for the BC’s work over the last few months.
*With information from Estadão Conteúdo
