Brazil regulator warns capital gaps as Central Bank orders bank liquidations

Moody's Local says a growing number of Brazilian financial institutions – mainly smaller banks, fintechs, credit societies and payment firms – are expected to miss the 2025 regulatory capital minimum. Associate Director Henrique Ikuta noted that “this year we see a larger number of capital de‑qualification, indicating a real deterioration in the financial profile of various entities,” citing weaker balance‑sheets, higher funding costs and pressure from the agribusiness sector.

The Central Bank of Brazil has meanwhile liquidated 16 institutions between 2025 and 2026, most of them tied to the Banco Master group. Recent actions include the removal of Sefer Investimentos DTVM and the likely inclusion of the digital bank Digimais, under investigation for fraud. Experts describe the wave as a concentrated, non‑systemic crisis driven by liquidity deterioration and regulatory infractions rather than an imminent collapse of the banking system.