New rule that limits the use of the FGC to attract investors comes into effect; understand what changes

BC approves stricter rules for the FGC after crisis with Master
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 came into effect this Monday (1st).
The measures were defined by the National Monetary Council (CMN) at the end of April, after the crisis involving Banco Master. The bank recorded strong growth in a short time by offering yield rates above those practiced by other financial institutions, highlighting FGC coverage as a guarantee.
With the new rules, banks will have to monitor an indicator called "reference asset". In practice, it works as a kind of thermometer of the institution's financial health, by measuring the quality and diversity of the investments it has.
If the bank has a lot of money raised with FGC guarantee and little investment in safer assets, it will have to change this strategy. In this case, you will be forced to invest part of the resources in federal public bonds, which are considered safer because they have a low risk of default.
In addition, the Central Bank also refined the way it measures banks' ability to absorb losses. In other words, it started to consider other types of capital, in addition to the main equity, which can be used to cover losses in crisis scenarios.
Credit Guarantee Fund (FGC)
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Changes reinforce security in the financial system
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, associated banks to the FGC will now receive more detailed information about investors who have investments covered by the fund.
This information will allow financial institutions and the Central Bank itself to have a broader view of which resources are or are not covered by the FGC and what real risk the fund runs.
In a note released last Friday, the BC stated the changes "improve the quality of available information and reinforce the capacity of financial institutions to deal with risks, strengthening the solidity and transparency of the National Financial System".
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