The head of the central bank in Brazil meets with bankers as a lender shooter

(Bloomberg) – Gabriel Galipolo, president of the Central Bank in Brazil, met with top bankers over the weekend as they tried to reduce the impact of the sale of Banco Master SA, a smaller bank that grew rapidly with the support of the country’s financial safety net. The officials discussed the management of the Deposit Insurance Fund, known as FGC, as well as the plight of Banco Master, according to people with knowledge of the case. The heads of Itau Unibanco SA, Banco Bradesco SA, Banco Santander Brasil SA and Banco BTG Pactual SA were according to a statement from the central bank. Daniel Lima, the head of FGC, was also present during the session on Saturday in Sao Paulo. The Central Bank said in the statement that it is ‘periodically meetings with members of the national financial system to deal with financial stability’ issues ‘to discuss’ current issues and especially to reconcile participants ‘schedules.’ One of the people said it also heard it in the coming days of managers at smaller private banks. The drivers left the meeting without talking to reporters. Banks representatives did not immediately return e -mails on Sunday, the outsider left regular working hours to discuss the meeting. Last week, Brb-Banco de Brasilia SA, a small bank in the public sector, signed an agreement to combine with the Master, although some assets would be cut out before the acquisition. This raised questions about the plight of the remaining part of the bank, which includes risk -cane assets, such as equity interest in small and middle -sized companies and a portfolio of effects related to disputes in court payment. Financial enterprises and regulators want to avoid a hypothetical liquidation or intervention of Banco Master, as a significant part of the FGC’s resources may be involved. Banco Master has fueled years of robust growth by paying the above market rates on individual investors’ deposits. This has attracted customers by marketing an BDC, which is funded by reserve requirements of banks and owned by the largest borrowers. The fund ensures deposits in Brazil to 250,000 Reais ($ 42,788) per individual per bank. At the end of December, Master owed approximately 16 billion Reais ($ 2.7 billion) to obligations this year, according to the bank’s financial report. -With help from Dayanne Sousa, Peter Frontini and Cristiane Lucchesi. More stories like these are available on Bloomberg.com © 2025 Bloomberg LP