Banco de Brasília faces financial crisis amid political dispute

The Banco de Brasília (BRB) is facing a significant financial crisis following the liquidation of Banco Master, involving the discovery of R$ 12 billion in non-existent titles. The crisis has sparked a political confrontation between President Luiz Inácio Lula da Silva and the Governor of the Distrito Federal, Celina Leão.

President Lula has refused to provide federal funds to stabilize the bank, accusing the local administration of mismanagement and blaming the connection between former Governor Ibaneis Rocha and Banco Master. In response, Governor Leão has accused the President of using the bank as an electoral tool and has criticized his tone toward her. She maintains that the bank is a solid institution and expects its stability to return once the election period concludes.

To address the liquidity needs, the Distrito Federal government is seeking a R$ 6.6 billion loan from the Credit Guarantee Fund (FGC) and is actively meeting with international investors, including those from the United Arab Emirates, to secure capital. Meanwhile, local productive sector entities have issued a manifesto calling for a technical and non-partisan approach to the bank's recovery to protect the regional economy.