Galípolo says that the use of money from Master fraud 'draws attention', but minimizes risk to the financial system: '3rd division'

The president of the Central Bank, Gabriel Galípolo, reaffirmed this Tuesday (19) that the liquidation of the Master bank, carried out by the monetary authority in November last year due to signs of irregularities, did not pose a risk to the financial system.
During a public hearing at the Economic Affairs Committee (CAE) of the Federal Senate, he explained that the Master bank was relatively small to pose a "systemic risk".
At the same time, Daniel Vorcaro, owner of the Master Bank, was arrested in an operation that aimed at selling false credit securities.
"I agree that this is dismaying people, it is not the liabilities [Master's debt]. But what was done with the money. An S3 bank, in the third football division of the financial system, does not offer systemic risk, it is less than 0.5% of the assets [total system]. What draws attention is what was done with the money", declared Galípolo, from the Central Bank.
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Last week, it was revealed that the banker Daniel Vorcaro helped finance a film about Jair Bolsonaro.
And that the negotiations involved direct contacts with the former president's eldest son, the senator and pre-candidate for the Presidency of the Republic Flávio Bolsonaro (PL-RJ), who asked for money and pressed for payments. The banker paid R$61 million.
Vorcaro's financing of Jair Bolsonaro's film, however, was not mentioned directly by the president of the Central Bank.
The Federal Police say they have evidence that banker Daniel Vorcaro paid for at least three international trips for senator Ciro Nogueira, president of the Progressives Party.
Banco Master also paid more than R$80 million to the law firm of Viviane Barci de Moraes, wife of minister Alexandre de Moraes, of the Federal Supreme Court (STF).
Record for liquidations of financial institutions
Due to the liquidation of the Master bank, the BC was forced to liquidate other financial institutions linked to it. According to him, the monetary authority has liquidated 13 institutions since 2025.
"We are at a record, not that I am proud of it. We are having difficulty finding new liquidators of so many institutions that we have liquidated since 2025," said the president of the BC.
Organized exit from the market
After the BC denied the purchase of Master by BRB and before it was liquidated, in September last year, Galípolo said that Vorcaro proposed an organized exit of the bank from the market.
"He was saying that he had a new buyer. It wasn't even a bank. Again, these Arab investors were already mentioned in a letter from September, when there was a rejection of the purchase by BRB. He said that he would carry out an organized exit from the market, a self-liquidation, passing on to these Arab investors, of which I was never aware", stated Galípolo.
Questioned about meetings held by Daniel Vorcaro at the Central Bank in recent years, before he was arrested, and the participation of the former employees of the monetary authority in irregularities, Galípolo stated that when there is a bank with suspicion about its actions, with evidence and signs of inappropriate practices, the inspection monitors it 'much more closely."
"I didn't monitor it, but until 2024 my mandate was as director of Monetary Policy. The BC cannot say that someone committed fraud, only the courts, the Public Ministry. But with the evidence we had, there had to be closer monitoring. BC started to impose a series of restrictions", declared Galípolo, head of the BC.
BC Autonomy
To improve the Central Bank's governance and control over the financial system, President Gabriel Galípolo asked the Federal Senate to approve the project that guarantees budgetary autonomy to the monetary authority. With the change, the BC would no longer depend on the Union's budget.
"If the Senate wants to help the BC's governance, it approves the project that has been in the Chamber for 10 years and gives autonomy to the BC. To have resources to compete with the financial system, which has many resources.

How do I automate processes and place more people without staff?", he asked.
The president of the monetary authority also asked for the approval of the project that creates a bank resolution regime, applicable by the Central Bank to financial institutions and insurance companies that have budget difficulties.
The objective would be to update these BC intervention and settlement rules in financial institutions.
The president of the Central Bank, Gabriel Galípolo, speaks at the Economic Affairs Committee (CAE) of the Federal Senate, on May 19, 2026
Edilson Rodrigues/Agência Senado

Source: G1

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