Banco Master liquidation activates FGC protection and reveals R$5.7 bn credit transfers

On 18 November 2025 the Central Bank of Brazil ordered the extrajudicial liquidation of Banco Master, terminating the bank’s operations. Investors with eligible deposits can now file claims with the Fundo Garantidor de Créditos (FGC), which guarantees up to R$250,000 per individual and a total of R$1 million per client across covered institutions.

Court documents obtained by UOL show that, between June and August 2025, Banco Master transferred R$5.7 billion in atypical credit contracts to investment funds and to Banco de Brasília (BRB) before the legal “term date” of 19 September. The liquidator listed 112 credit cessations totalling R$10.2 billion, a pattern described by the Federal Police as “pulverisation and repackaging”. The transfers are now under judicial and regulatory investigation, and the liquidator has asked the court to keep the proceedings confidential.

The bank has not responded to inquiries, while BRB and the implicated investment funds have issued limited statements. The liquidation and the disputed credit moves raise concerns about credit risk and regulatory oversight in Brazil’s banking sector.