BRB Bank Denies Allegations of Unauthorized Transactions with Banco Master
BRB Bank refutes claims of unauthorized transactions with Banco Master, affirming compliance with Central Bank regulations amid rejected acquisition plans.
- • BRB denies unauthorized business transactions outside Central Bank oversight.
- • BRB keeps the regulator informed about all operations.
- • Central Bank rejected BRB’s acquisition proposal for Banco Master shares.
- • Banco Master faces scrutiny over debt management and rapid expansion.
Key details
BRB Bank (BSLI3) has officially denied accusations that it conducted banking transactions with Banco Master outside the oversight of the Central Bank of Brazil. On October 14, BRB issued a statement rejecting rumors, emphasizing that it keeps the regulator promptly informed of all its operations. The bank highlighted that it routinely engages in transactions with various financial institutions as part of its strategic planning to develop operations and explore market opportunities, always adhering to efficiency, profitability, and sustainable growth principles.
BRB stated that all operations comply fully with the regulations of the National Financial System and operate within the limits established in its Risk Appetite Statement, following corporate governance best practices. This response follows reports indicating BRB acquired a R$1 billion credit portfolio from Banco Master, led by Daniel Vorcaro. Earlier, BRB’s proposal to acquire a significant stake in Banco Master—49% of ordinary shares, 100% of preferred shares, and 58% of total capital, in a R$2 billion deal approved by BRB's board on March 28—was rejected by the Central Bank in September.
Concerns underlying the rejection included Banco Master's aggressive expansion via high-yield debt financing and doubts over its ability to manage its debt obligations. The Central Bank was also evaluating if BRB, controlled by the Federal District government, could support Banco Master's capital structure. Market speculation around potential asset acquisitions from Banco Master by BRB remains unconfirmed.
BRB firmly asserts that all its dealings remain within regulatory frameworks and regulatory bodies are continuously updated, refuting any claims of operating outside Central Bank supervision.