Central Bank sets 6-day deadline for BRB to present financial solution

The Bank of Brasília (BRB) has until May 29th to present to the Central Bank a complete balance sheet demonstrating its real financial situation. The deadline was defined in a Central Bank meeting with district and federal deputies from the Federal District, according to sources interviewed by CNN.

According to political analyst Larissa Rodrigues, who investigated the case and brought the information to CNN 360º this Friday (22), the date represents the end of a calendar established after a large meeting of BRB shareholders, in which it was decided to increase the bank's capital in an attempt to overcome the financial problems faced by the institution.

If the report is not delivered or does not provide sufficient proof of the capital increase and clarity regarding BRB's financial situation, the Central Bank must adopt, from June onwards, specific interventions in the institution.

Larissa highlighted that these measures do not necessarily mean the end of BRB or a requirement for purchase by another institution. "These are specific interventions, which are normally carried out by the Central Bank in financial institutions that have had some type of problem until reaching the extreme case, which is liquidation", explained the analyst.

Possibilities include the appointment of a Central Bank intervener in the bank's administration, the removal of directors and the prohibition of opening new branches or selling new assets.

Central Bank sources indicated that, to date, the information provided by BRB is superficial and does not offer the necessary clarity about the institution's real situation.

According to the analyst, several options have been discussed by BRB, but no concrete measures have been implemented so far. There was an attempt to increase the bank's capital through negotiations with Quadra Capital, a company that purchased BRB assets, but this movement would be related to liquidity, and not to the institution's structural capital.

BRB's capital is in a more fragile situation following the resources spent on attempts to negotiate with Banco Master.

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Source: CNN