BC rejects BRB’s purchase of Master bank

The BC (Central Bank) rejected on Wednesday (3) the purchase proposal of the Master bank by the state-owned BRB (Brasília Bank), as reported by Folha through sources close to the operation. The parties have already been notified. After the article was published, BRB released a statement to the market informing shareholders of the rejection. The bank requested access to the arguments that supported the decision and, according to company members, still believes in the fundamentals of the operation. The strategy is to try to mitigate any risks identified by the BC. The monetary authority had nearly a year to evaluate the deal but had shown interest in reaching a quick conclusion to the analysis. The announcement of the agreement with BRB in late March stirred up the banking system by putting the spotlight on the relationship between political leaders of the centrão with Daniel Vorcaro (Master’s owner) and their risky operations with promissory notes and CDBs (Certificates of Deposit). The operation also involved a struggle between banks to change the FGC (Credit Guarantee Fund), which eventually happened in early August.