Today: January 23, 2026
January 23, 2026
2 mins read

Council expands FGC powers to rescue bank before liquidation

Council expands FGC powers to rescue bank before liquidation

The changes to the statute of the Credit Guarantee Fund (FGC) approved on Thursday (22) by the National Monetary Council (CMN) allow the adoption of rescue measures for financial institutions before liquidation by the Central Bank (BC). In a note, the FGC reinforced that the measures expand the fund’s operating instruments, but do not affect recent settlements.Council expands FGC powers to rescue bank before liquidation

The changes occur amid the crisis of the Master group, liquidated in November 2025, whose impact on the FGC could approach R$50 billion, the highest value ever recorded in the history of the fund. Since last Monday (19), the FGC started payments to investors with resources invested in the institution’s covered products.

Under the new rules, the FGC, a fund maintained by financial institutions, will be able to act in situations of “relevant financial difficulty” recognized by the BC, making the design of assistance operations more flexible. Until now, the fund’s activities were restricted to cases in which liquidation had already been ordered.

Among the mechanisms now authorized are operations to change control of the institution in crisis or the transfer of assets and liabilities, such as credit portfolios and deposits, to other financial institutions. According to the FGC, the measure seeks to avoid interruption of services to customers, reduce the costs of a possible failure and minimize the impact on the fund itself.

“The idea is to reduce the possibility of contamination of the financial system, reducing systemic risks”, informed the FGC in a note.

The fund adds that the changes follow international standards and are part of a continuous process of modernizing the depositor protection framework.

>> Follow the channel Brazil Agency on WhatsApp

Other changes

The CMN also approved changes to article 7 of the regulation, allowing the FGC board of directors to propose an increase or reduction in contributions from associated institutions, whenever it deems necessary. The proposal must be analyzed by the Central Bank and decided by the CMN itself. According to the fund, there is currently no discussion about raising tax rates.

To mitigate impacts on liquidity, the FGC may also bring forward contributions from associates by up to five years and institute extraordinary charges, instruments that were already provided for in the rules. The advance payment will help cover any losses to the Guarantee Fund. In the case of the recent Master and Will Bankthe FGC will have to disburse at least R$47 billion, almost a third of the fund’s assets.

Another relevant point is the establishment of a maximum period of three days for the payment of guarantees to begin, counting from the receipt of formal information sent by the liquidators. The changes also include clearer rules for sending and correcting data and greater transparency, with public disclosure of the balance of instruments covered by each associated institution.

According to the FGC, the changes “contribute to greater stability and solidity of the National Financial System, maintaining convergence with internationally adopted reference standards”, without affecting recent settlements.

The FGC guarantees up to R$250,000 per CPF or CNPJ, per financial institution, in covered deposits and credits, protecting account holders and investors in the event of bankruptcy of banks authorized to operate in the country.

Source link

Latest Posts

They celebrated "Buenos Aires Coffee Day" with a tour of historic bars - Télam
Cum at clita latine. Tation nominavi quo id. An est possit adipiscing, error tation qualisque vel te.

Categories

The number of political prisoners in Cuba amounts to 1,148, denounces Prisoners Defenders
Previous Story

IACHR grants precautionary measures to political prisoner Duannis León Taboada and his mother

JCE distribuirá RD$1,620 millones del Estado entre partidos políticos este 2026
Next Story

JCE will distribute RD$1,620 million from the State among political parties in 2026

Latest from Blog

Fast track ratifies Gertz as ambassador

Georgina Saldierna and Fernando Camacho La Jornada NewspaperFriday, January 23, 2026, p. 6 In one session fast track In just over an hour, the Political and International Affairs Committee of the Permanent
Go toTop