Brazil's Banco de Brasília (BRB) is considering accessing liquidity lines (LFL) from the Central Bank to address cash shortages from the Banco Master crisis. Anonymous sources say the bank is negotiating to use its credit portfolios as collateral, potentially unlocking R$ 300 million. This comes amid R$ 12.2 billion losses from fraudulent operations.
BRB is grappling with a liquidity crunch after uncovering R$ 12.2 billion in worthless credit portfolios bought from Banco Master, run by Daniel Vorcaro. The losses were not fully offset by transferred assets, many of poor quality, according to sources cited by Folha.
To manage the issue, the Distrito Federal's state-owned bank has been selling credit portfolios to private institutions and maintaining lines with private lenders. It now eyes Central Bank LFLs, loans backed by assets like bonds and possibly Cédulas de Crédito Bancário (CCB). Insiders say the regulator may approve these as collateral, enabling gradual access to up to R$ 300 million at lower costs.
On Monday (30), DF Governor Celina Leão (PP) spoke by phone with Finance Minister Dario Durigan. He ruled out federalizing BRB but noted Caixa Econômica Federal and Banco do Brasil could buy its assets.
BRB requires a capital injection, pledged by its president by May 30, ahead of the Central Bank's August 5 deadline. An April 22 assembly will vote on a capital increase up to R$ 8.817 billion via private subscription of new shares at R$ 5.36. The bank delayed its 2025 balance sheet release and declined to comment on the talks.
