Master clients directed resources to larger banks, says BC

After the extrajudicial liquidation of the Master conglomerate, creditors compensated by the FGC (Credit Guarantee Fund) directed their resources to larger financial institutions with greater systemic relevance. The information is contained in the Financial Stability Report released by the BC (Central Bank) this Monday (25).

"The one-off crisis with the Master conglomerate did not generate a relevant impact on the rates charged on instruments guaranteed by the FGC. Maintaining broad access for financial institutions to the funding market reinforces depositors' confidence in the health of the National Financial System", says the document.

According to the BC, the extrajudicial liquidation of institutions that are part of the Master conglomerate did not generate systemic effects on the National Financial System. Last year, 13 institutions were liquidated.

"The BC considers that there is no relevant risk to financial stability. The SFN remains with comfortable capitalization and liquidity, and provisions adequate to the level of expected losses. Furthermore, the capital and liquidity stress tests demonstrate the robustness of the banking system", he says.

Updating.

Source: CNN