Brazil · Banking & Regulation
Key Facts
—A record hole drove the reform. The Banco Master collapse and its affiliates left a hole of roughly $9.3 billion in Brazil’s deposit-guarantee fund, the largest single bank failure in the country’s post-1994 history.
—A new bond mandate. Banks that raise heavily on guaranteed products but hold low-quality assets must now park part of those funds in federal government bonds, phasing in from 5% in July 2026 to 100% by July 2028.
—Risk-based contributions. Institutions that take on more risk will pay more into the fund, an explicit toll designed to discourage aggressive deposit-gathering.
