The Credit Guarantee Fund (FGC) has actively processed reimbursements, reaching a significant milestone by paying out $37.7 billion to creditors of Banco Master and Will Bank. This substantial sum reflects the ongoing efforts to stabilize the financial landscape following the liquidation of several institutions linked to the conglomerate. As of 10 AM this Wednesday, January 18, 2025, the fund had already disbursed $37.2 billion in guarantees to Banco Master’s creditors, covering 84% of affected individuals and representing 92% of the total projected amount for that specific entity.
Overall, the FGC estimates it will ultimately need to reimburse approximately $40.6 billion to 800,000 creditors associated with Banco Master. The efficiency of these initial payments underscores the fund’s commitment to swiftly address the financial repercussions for depositors and investors, mitigating broader market instability.
The ongoing liquidation events highlight a critical period for Brazil’s financial sector, demanding robust mechanisms to protect consumers and maintain trust in banking institutions. The FGC’s rapid response is a testament to its role as a key safeguard within the national financial system.
Substantial Payments for Master Bank Creditors
Creditors of Banco Master have seen a swift response from the FGC, with a majority already compensated. The fund’s prompt action has been crucial in addressing the immediate needs of those impacted by the bank’s liquidation, ensuring financial stability for many individuals and businesses.
The total projected reimbursement for Banco Master stands at an estimated $40.6 billion. This amount is earmarked for some 800,000 creditors, reflecting the wide reach and impact of the institution’s operations prior to its liquidation.
The FGC’s operational capacity has allowed it to process a significant portion of these claims efficiently, highlighting the preparedness and logistical capabilities deployed to manage large-scale financial resolutions.
Will Bank and Pleno Bank Liquidations Add to FGC Burden
Beyond Banco Master, the FGC is also addressing claims related to Will Bank, which the Central Bank liquidated in January 2025. For Will Bank, the fund has already disbursed $53 million out of a projected total of $6.3 billion.
Payments for Will Bank commenced on February 13, 2025, prioritizing an expedited process for customers with claims up to $1,000. This targeted approach ensures that smaller account holders receive their guarantees quickly, providing immediate relief.
The liquidation of Banco Pleno, also on Wednesday, January 18, 2025, further expanded the FGC’s responsibilities. The fund anticipates reimbursing $4.9 billion to approximately 160,000 creditors of Banco Pleno, adding another layer of complexity to its operations. Despite Banco Pleno being acquired by Banco Master in 2024, its control shifted to Augusto Ferreira Lima in July 2025, meaning it was no longer part of Daniel Vorcaro’s conglomerate at the time of its liquidation. This distinction is crucial for understanding the separate processing of claims.
Cumulatively, the cost to the FGC for resolving the activities of Pleno, Will Bank, and Banco Master has now reached an estimated $51.8 billion. This figure underscores the immense financial responsibility shouldered by the guarantee fund in maintaining depositor confidence and financial system integrity during periods of institutional distress.
Overview of Recent Financial Liquidations
Since November 2025, a series of liquidations affecting eight institutions linked to financier Daniel Vorcaro have been recorded. These events collectively represent a significant period of restructuring and oversight within the banking sector, drawing considerable attention from regulators and the public alike.
The affected entities represent various segments of the financial market, from investment banking to credit and brokerage services. The broad scope of these liquidations highlights systemic vulnerabilities that require diligent regulatory attention and robust safety nets like the FGC.
The institutions that have undergone liquidation proceedings include:
- Banco Master S/A;
- Banco Master de Investimento S/A;
- Banco Letsbank S/A;
- Master S/A Corretora de Câmbio, Títulos e Valores Mobiliários;
- CBSF Distribuidora de Títulos e Valores Mobiliários S.A. (formerly Reag Trust);
- Will Financeira S.A. Crédito, Financiamento e Investimento;
- Banco Pleno S.A;
- Pleno Distribuidora Títulos e Valores Mobiliário S.A.
Understanding FGC Guarantee Coverage
The FGC’s guarantee mechanism is designed to protect depositors and investors, providing coverage up to $250,000 per individual (CPF) or legal entity (CNPJ). This coverage applies to the aggregate amount of deposits and credits held in each eligible institution or associated prudential conglomerate. The purpose of this ceiling is to safeguard a substantial portion of the average consumer’s savings and investments, fostering trust in the banking system.
In addition to the per-entity limit, a broader ceiling of $1 million is applied over a four-year period. This ensures protection for individuals who might be affected by the failure of multiple institutions within the same timeframe, offering a crucial safety net for high-net-worth individuals and corporate entities with diversified portfolios across various financial entities. The comprehensive nature of these limits aims to balance broad protection with fiscal responsibility for the fund.
The instruments covered by the FGC guarantee are extensive and clearly defined within its regulations. These include demand deposit accounts, savings accounts, Certificate of Deposit (CDB), Real Estate Credit Bills (LCI), and Agribusiness Credit Bills (LCA), among others. This wide range of covered products ensures that various forms of consumer and business deposits are protected, making the FGC an indispensable component of financial security.
The Reimbursement Process for Creditors
The process for creditors to claim their guarantees begins after a financial institution’s liquidation. The liquidator or intervener of the bank, such as Banco Pleno, is responsible for submitting a comprehensive list of beneficiaries and their respective due amounts to the FGC. The consolidation and verification of this data require a variable period, depending on the complexity and size of the institution being liquidated.
Once the FGC receives and processes the complete database, it notifies eligible creditors that the system is ready to accept guarantee requests. Creditors are then required to formally express their interest in receiving the funds, as the payment of the guarantee by the FGC constitutes an assignment of credits with subrogation of rights to the fund, meaning the FGC assumes the creditor’s position relative to the liquidated institution.
For individual creditors (CPFs), the guarantee request is conveniently handled through the FGC’s dedicated mobile application, streamlining the process. Legal entities (CNPJs), however, are directed to complete their application via the FGC’s website, which accommodates the more complex documentation typically associated with corporate claims. After a thorough review and completion of the required registration, individuals can view their eligible amount and digitally sign the request form. For legal entities, the term is dispatched via email following a detailed documentary analysis, ensuring accuracy and legal compliance before final disbursement.