The extrajudicial liquidation of the financial institutions that made up Banco Master did not generate a relevant impact capable of generating a crisis in the national financial system. The note appears in the Financial Stability Report, published by the Central Bank this Monday morning (25).
According to the document, “the protection mechanisms associated with the Credit Guarantee Fund were activated in accordance with the current institutional model, demonstrating the shock absorption capacity and resilience of the financial system”.
After settlement, customers reimbursed by the FGC were able to direct resources mainly to larger financial institutions with greater systemic relevance.
“The one-off crisis with the Master conglomerate did not generate a relevant impact on the rates charged on instruments guaranteed by the FGC. The maintenance of broad access for FIs to the funding market reinforces depositors’ confidence in the health of the SFN”, highlights an excerpt.
On Tuesday (19), the president of the Central Bank, Gabriel Galípolo, defended at the Economic Affairs Committee the quick action of the monetary authority in the case involving Banco Master’s fraudulent credit portfolios.
In the assessment of the municipality’s president, the biggest problem in relation to the Banco Master case was not only the offer of CDBs issued at 40% of the CDI, but rather the destination given to the money raised.
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However, Galípolo stated that the impact was relatively small to transform the case into a systemic risk after the liquidation of the financial institution. “[Impacto do Master] is less than 0.5% of the system’s total assets”, he argued at the time.
To reinforce confidence in the solidity of the SFN, Galípolo also pointed out that the BC has liquidated another 12 institutions since 2025. “We are having difficulty finding new liquidators for so many institutions that we have liquidated since 2025”, he added.
