Brazil's Central Bank Liquidates Banco Master as FGC Prepares Record Payout

Overview

• The Central Bank ordered the extrajudicial liquidation of Banco Master, activating coverage for eligible depositors and investors.
• The FGC said it will begin disbursements after receiving the creditor list from the court‑appointed liquidator, with payments typically completed in about 30 days.
• Market estimates point to R$40–R$50 billion in guarantees, versus roughly R$120 billion the fund held earlier this year, and banks are expected to advance and increase contributions to rebuild the FGC.
• Coverage is capped at R$250,000 per taxpayer ID per institution and applies to instruments such as CDBs, LCIs/LCAs, savings, checking and similar deposits.
• Banco Master raised funds with unusually high‑yield CDBs that drew roughly 700,000 investors, authorities reported the arrest of owner Daniel Vorcaro, and Google searches for “FGC” surged to as much as 50 times recent levels.