Extrajudicial liquidation returned to the center of the news with the cases of Banco Master and Will Bankinstitutions that were part of the same financial conglomerate. Banco Master was liquidated in November 2025, while Will Bank was only liquidated this Wednesday (21). The difference in deadlines generated questions among investors and account holders.
According to the Central Bank (BC), after the liquidation of Master, Will Bank began to operate under a special temporary administration regime. During this period, the BC took control of the institution with the aim of preserving the operation, avoiding immediate impacts on customers and trying a solution that would allow its continuity, such as selling it to a new investor.
In a note, the Central Bank reported that it tried “a solution that would preserve the operation of its subsidiary Will Financeira”. The text, however, did not clarify whether the BC tried to put the digital bank, an arm of Grupo Master that served lower-income consumers, mainly in the Northeast region, up for sale.
At the same time, the institution’s financial situation deteriorated, with an increase in liabilities and operational difficulties. The decisive factor in the settlement was the failure to fulfill commitments in Mastercard’s payment arrangement. The failure led to the blocking of Will Bank’s participation in the brand’s system and the suspension of the use of cards, characterizing, in the Central Bank’s assessment, the institution’s insolvency.
In an official statement, the BC stated that liquidation became inevitable given the compromised economic and financial situation of Will Bank, its inability to honor obligations and the direct link with Banco Master, already in liquidation.
What is extrajudicial settlement?
Extrajudicial liquidation is an administrative procedure used to close, in an organized manner, the activities of financial institutions facing a serious crisis. When announced, the measure tends to generate apprehension among customers, especially regarding the fate of accounts, investments and contracts in progress.
The regime is applied when the institution’s financial situation becomes unsustainable. According to the Central Bank, the main objective is to protect depositors, creditors and the financial system itself, avoiding greater losses or disorderly bankruptcy.
Who decides on liquidation?
In the case of financial institutions, the decree of extrajudicial liquidation is the exclusive responsibility of the Central Bank. The initiative may come from the regulatory body itself or, in some cases, from the institution’s administrators, as long as there is a statutory provision. The legislation authorizes the measure in situations such as insolvency without the possibility of reversal, non-compliance with standards, fraud, serious operational failures or reckless management.
In addition to banks, other companies in sensitive sectors may also be subject to the regime, such as insurance companies and open private pension entities, supervised by Susep, and health plan operators, regulated by the National Supplementary Health Agency (ANS).
What happens to the bank?
After liquidation, the institution’s operations cease. Accounts, transfers, cards and new contracts stop working. A liquidator is appointed by the Central Bank to collect assets, debts and credits, sell assets and organize the payment of creditors in accordance with the order provided for by law.
And what about the customer?
Anyone who had a bank account loses immediate access to services. The existing balance becomes part of the institution’s liabilities, and the account holder becomes a creditor in the liquidation process. Payment will depend on available collateral and the progress of the liquidator’s work.
Are money and investments protected?
Deposits and some investments are covered by the Credit Guarantee Fund (FGC), formed by resources from public and private financial institutions. The fund guarantees up to R$250,000 per CPF or CNPJ, per institution, considering the set of eligible products, such as current account, savings account, CDB, RDB, LCI and LCA.
In the case of CBDs, protection also follows this limit. In financial conglomerates, however, the guaranteed value may vary depending on the date of issue of the securities and the way in which the institutions are classified by the FGC, which may reduce the amount effectively covered.
The FGC is paying R$40.6 billion to around 800,000 Banco Master investors. The initial forecast was between R$41 billion and R$43 billion for 1.6 million customers. With the liquidation of the Master, liabilities increased by R$6.3 billion, according to the FGC itself, totaling the final impact at R$46.9 billion. This is equivalent to more than a third of the fund’s assets.
Are debts still valid?
Extrajudicial settlement does not eliminate customer debts. Loans, financing and invoices remain valid. What changes is the administration of these contracts, which is now carried out by the liquidator or another institution that eventually takes over part of the operations.
Are administrators’ assets blocked?
The law determines the unavailability of the assets of controllers and former administrators of the liquidated institution. The measure prevents the transfer of assets until possible responsibilities are identified, acting as additional protection for creditors.
How should the customer act?
Anyone who has an account or investments in liquidated institutions must gather statements, contracts and receipts and only follow official communications from the Central Bank, the liquidator and the Credit Guarantee Fund. The FGC does not charge fees for making payments and warns of scam attempts during periods of banking instability.
Liquidation is not bankruptcy
Although similar, the processes are not the same. Extrajudicial liquidation is the initial step applied to financial institutions and occurs under administrative supervision. Bankruptcy can only be declared later, if assets are insufficient or signs of more serious irregularities are identified.
The episodes involving Banco Master and Will Bank reinforce the importance of consumers understanding how extrajudicial settlement works and what their rights are in situations of crisis in the financial system.
