US EditionBrazilian Bank Collapse Implicates Officials
10 Articles
10 Articles
In an event in Maceio, the president said that the money will be paid by banks
Volume corresponds to the advance of five years of contributions from associated institutions; in addition, it is expected that there is an extraordinary alliquota.
The FGC (Credit Guarantee Fund) is expected to make a capital call of approximately R$ 30 billion to its member banks to replenish its cash reserves after reimbursing investors of Banco Master and Will Bank. The measure is under discussion and involves the anticipation of future contributions and the collection of an extraordinary contribution. The shortfall was created by payments to clients of the two institutions under extrajudicial liquidati…
Brazilian Bank Collapse Implicates Officials
Banco Master Liquidation Sparks Controversy Rio de Janeiro – The liquidation of Banco Master is generating significant controversy as creditors and former employees grapple with substantial financial losses. The Central Bank initiated the liquidation earlier this month due to the bank’s precarious financial situation. Liquidation trigger: Central Bank intervention due to unsustainable financial conditions. Key concern: Creditors face potentiall…
In the Master case, the Central Bank has already liquidated six financial institutions since November 2025. The latest was Will Bank, liquid in the last quarter (21). When a financial institution is liquid, customers become creditors. To regain the resources applied, it is necessary to return to the FGC (Credit Guarantee Fund), which repays up to R$ 250 000 by CPF or CNPJ for its total deposits and credits in each associated prudent institution …
The Credit Guarantee Fund (FGC) should make a call for about R$ 30 billion in “contribution advance” to restore the fund after the open hole with the investor resurgence of the Bank Master. It is difficult to calculate the impact of the capital call for each bank, especially because it is not known how much of each bank's deposits is secured and what is not. For example, the Unibanco Itau has many large corporate and high net worth customers, wh…
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