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BRB Flags Possible GDF Capital Injection as Probes of Banco Master Deals Continue

Ongoing audits are assessing potential losses on R$12.2 billion in portfolios tied to Banco Master.

Overview

  • BRB said its capital plan includes a potential direct injection from the Federal District government, which has signaled willingness to provide support if losses are confirmed.
  • The bank reported normal operations and cited equity of R$4.5 billion and regulatory capital of R$6.5 billion in its latest statement.
  • The Central Bank and an independent review by Machado e Meyer with Kroll support are still examining the transactions and have not released conclusions.
  • Federal Police and federal prosecutors are investigating indications that BRB bought R$12.2 billion in nonexistent credit portfolios from Banco Master, with reports of false documents provided to regulators.
  • Banco Master was placed into liquidation in November 2025 after a blocked takeover attempt by BRB earlier that year, and BRB says it is a creditor in the liquidation as fiscal debate in the DF intensifies over any public support.