BC publishes new rules to prevent banks from using FGC as a strategy to raise funds; see standards

BC approves stricter rules for the FGC after crisis with Master
The Central Bank published this Friday (30) the details of the new rules that make it more difficult for banks to use the protection of the Credit Guarantee Fund (FGC) as a strategy to attract investors and raise funds in the financial market.
The measures come into force next Monday (1st) and were defined after the crisis involving Banco Master, which registered strong growth in a short time by offering yield rates above practiced by other financial institutions.
The bank also highlighted FGC coverage as a guarantee for applications considered more risky.
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At the end of April, the National Monetary Council (CMN) decided to create new requirements for financial institutions that use resources covered by the FGC. Under the rule, banks will have to observe the so-called "reference asset", an indicator that measures the quality and diversification of the institution's resources.
In practice, if the portion of resources guaranteed by the FGC exceeds the volume linked to lower risk assets, the bank will be forced to direct part of the money to federal public bonds, considered safer.
According to the Central Bank, the measure increases the capacity of institutions to face risks and seeks to reinforce the security of the financial system.
The BC also informed that, from November 2026, banks associated with the FGC will begin to receive more detailed information about investors who have investments covered by the fund.
In a note, the Central Bank stated that the details "will allow the exclusion of credits from holders ineligible for the guarantee (...) allowing for better calibration of the exposure of risk".
The Credit Guarantee Fund is a private entity that protects investors in the event of the failure of financial institutions. Currently, coverage is up to R$250,000 per CPF or CNPJ, per financial institution.

Source: G1