Archive · 20 Nov 2025
Brazil's Central Bank Shuts Down $16-Billion Bank Amid Fraud Probe
Brazil's central bank closed a big bank, Banco Master, after finding out it was involved in a huge fraud.
The bank's CEO tried to run away but was caught.
This might cost the country's deposit insurance system a lot of money.
Brazil's central bank shut down Banco Master worth $16 billion in assets
The move follows a federal police investigation into a $2 billion fraud within the banking system
Six people were arrested, and billions in assets were frozen and seized
Banco Master's CEO was arrested trying to flee the country hours after announcing a rescue deal
The bank's collapse may cost Brazil's deposit insurance system up to $10 billion
- Who
- Banco Master, a Brazilian bank worth $16 billion, and its executives
- What
- Was shut down and investigated for fraud
- When
- Tuesday, April 11, 2023
- Where
- Brazil
- Why
- Due to a federal police investigation into a $2 billion fraud within the banking system
Regulators and Industry Rivals
Banco Master and its Executives
Need for Stronger Oversight
Regulators and Industry Rivals
Regulators and rivals argue for tougher rules across the banking system.
Banco Master and its Executives
Banco Master and its executives did not publicly comment on the allegations.
- Arrested People
- 6
- Assets Frozen/Seized
- Billions of Brazilian reais
- Potential Cost to Deposit Insurance System
- Up to $10 billion
