In an extraordinary meeting this Friday (1st), the National Monetary Council (CMN) tightened the financial institutions to be able to associate with the Credit Guarantee Fund (FGC).
Private entity managed by associated banks, but regulated by CMN, the FGC guarantees the balances in account and investments of individuals and legal entities of up to R $ 250 thousand for each financial institution, with a global limit of up to R $ 1 million in four years. THE money is paid to investors in case of breach or liquidation of the financial institution.
Scheduled to enter into force on June 1, 2026, the new rules were defined after the Case of Banco Master, whose purchase by Banco do Brasilia (BRB) is the target of lawsuits and is investigated by the Public Prosecution Service. The Central Bank (BC), however, did not say whether other banks will be affected besides the master.
To the Standards seek to inhibit aggressive conduct in fundraising by financial institutions, which offer investments such as Bank Deposit Certificates (CDB) and private securities and promise higher returns than the market average.
In order to pay the return offered, these institutions make risky investments, which can cause liquid problems and crises (lack of money to pay CDB owners) if applications are not right.
Leverage
THE main change concerns the degree of leverage of the FGC participating financial institutions. Through leverage, an institution borrows money to invest, multiplying the value applied, but exposing themselves to more risks.
THE From June next year, the institution associated with the FGC that is excessively leveraged, with a reference value greater than 10 times the adjusted equity, must apply the surplus of funds in federal government securitiesconsidered safe investments.
THE measure reduces exposure to excessive risks by the financial institution that raise investors resources to apply to other assets.
THE change aims to reduce gaps that allow FGC-associated institutions to risk excessively in the financial market. In recent years, the Banco Master offered CDB income far above the market average to attract customersbut with problematic assets to pay these income, as precatory (debts of governments with definitive judicial judgment).
In practice, the model requires the confidence that the institution will use FGC guarantees if the precatory are insufficient, pressing the use of the guarantee fund.
Contributions
Funded by institutions associated with the mechanism, the FGC will have a change in monthly contributions. CMN enhanced the rules of additional contribution (CA).
All associated institutions pay FGC 0.01% each month of total deposits that can be protected by the fund. Institutions with a riskier profile need to contribute an extra rate, called the additional contribution.
By the decision of CMN, the Additional Contribution Multiplier rose from 0.01% to 0.02%. The ratio between the reference value (VR) and the reference captures, which define that it will pay the extra fee, dropped from 75% to 60%.
The reference value represents the balance of deposits covered by the FGC, while the reference of reference represents the total deposits in the institution. With the change, if the balance eligible to FGC represents 60% of the total, the institution will pay the extra contribution.
Justification
In a note, the BC reported that the proposed enhancements reduce moral risk (incentives for an institution to break because it will receive help), but do not prejudice the organic growth of institutions nor competition in the financial sector.
“It is preserved the expansion of the capture subject to guarantees, as long as the institution’s performance results in increasing its adjusted equity (PLA) – through greater results and capital attraction – or provided the institution expands its updating in a diverse manner, including also other instruments and investments not subject to FGC guarantee,” explained the BC.
Chaired by Finance Minister Fernando Haddad, CMN is also composed by Minister of Planning and Budget, Simone Tebet, and BC President Gabriel Galipolo.
