Financial Stability Report points out that resources from the conglomerate’s clients were migrated to larger banks after the payment of guarantees by the FGC
The Central Bank (BC) reported, this Monday (25), that the extrajudicial liquidation of the institutions that made up the Master conglomerate did not generate negative impacts on the balance of the National Financial System (SFN). The conclusion is part of the Financial Stability Report (REF) for the second half of 2025, which assesses the health of banking institutions in the country.
The Financial Stability Report is a biannual BC publication that serves as thermometer for the Brazilian economy.
According to the document, the termination of the group’s activities did not cause the so-called “cascading effect” on the market. The BC noted that, after receiving reimbursement from the Credit Guarantee Fund (FGC), Master’s former customers transferred their resources to large financial institutions. According to the agency, this movement was expected and reinforces depositors’ confidence in the solidity of the system.
“The extrajudicial liquidation of institutions belonging to the Master conglomerate did not generate systemic effects on the SFN. After the liquidation, clients reimbursed by the FGC directed resources mainly to larger financial institutions (FIs) of greater systemic relevance, in line with what is expected in bank resolution events”, points out the BC.
The monetary authority reinforced that the Brazilian banking system maintains comfortable reserve and capital levelsbeing able to absorb losses and continue generating profits.
Credit scenario in Brazil
The report also details the behavior of loans in Brazil. There was a slowdown in the pace of credit grantingfollowing the more moderate growth of the economy. This reduction was noticed both in loans to companies and families, especially in higher risk types.
Despite the slowdown, the capital market presented a growth higher than that of traditional bank credit. The BC pointed out that banks are more cautious when lending money. “The credit slowdown was accompanied by a slight improvement in the quality of new contracts with legal entities, suggesting greater caution in origination”, he states.
Challenges for families
The BC warned that the Brazilians’ payment capacity still faces difficultiesespecially among the lower-income population. The late payment rate increased across all credit categories for natural persons.
One point of attention that the BC cites is the growth in non-payroll personal credit. According to the agency, this modality “continued to grow at high rates and with an increase in the share of unsecured operations”, which indicates the persistence of specific risks in this sector.
For companies, the scenario is greater stability. The report points out that the tightening of financial conditions did not significantly harm the ability of large companies to generate cash to pay off their debts.
