Sale of Banco Master to BRB advances; see next steps

The General Superintendence of the Administrative Council for Economic Defense (CADE) approved, without restrictions, the agreement between Banco de Brasília (BRB) and Banco Master. The decision, made this Tuesday (17), represents a significant advance in the negotiation that involves the acquisition of the majority of Banco Master's capital by a financial institution controlled by the Government of the Federal District.

The transaction, however, still depends on the analysis of the Central Bank (Bacen) to be concluded. BRB announced in March its intention to purchase 49% of the common shares, 100% of the preferred shares and 58% of the total capital of Banco Master. Gazeta do Povo contacted Bacen to find out about the progress of the process, but had not received a response by the time this report was last updated.

Since the announcement of the negotiation, the operation has faced a series of legal challenges and actions by regulatory bodies. There have been at least seven decisions by the Courts and the Public Prosecutor's Office:

• April 1: The Public Prosecutor's Office of the Federal District and the Public Prosecutor's Office of Accounts of the Federal District requested detailed information about the purchase process.
• April 3 and 8: The Federal Public Ministry opened two investigations to verify possible crimes against the financial system and monitor the actions of the Central Bank.
• April 23: The TJDFT rejected an attempt by the Brasília Bank Workers Union to suspend the deal.
• May 6: The Court accepted the MPDFT's request and temporarily prohibited the signing of the contract.
• May 9: The injunction was overturned, allowing BRB to proceed with the final steps of the acquisition.

BRB and Master Bank

Created in 1964, BRB is a public, mixed-economy, publicly traded bank. The government of the Federal District is the majority shareholder, with 71.92% of the shares. In addition to the Federal District, the bank operates in eight other states.

Banco Master, in turn, has its origins in the former Máxima brokerage firm, founded in 1974. It became a bank in 1990 and was renamed after the purchase of Banco Vipal, in 2021. With operations focused on investments and credit, Master became the target of market attention for operations considered bold — and, in some cases, high risk.

FGC and political debate

The transaction also brought to the fore discussions about the role of the Credit Guarantee Fund (FGC), especially in light of the proposal to quadruple the guarantee limit, from R$250,000 to R$1 million per CPF or CNPJ. The change is included in PEC 65/2023, which deals with the autonomy of the Central Bank, proposed by Senator Ciro Nogueira (PP-PI).

The measure aims to adapt the Brazilian model to international standards, but raises alerts about the potential impact on public coffers and the incentive for bold operations in the financial sector — such as that of Banco Master itself.

In addition to regulatory and risk concerns, the deal has generated political discomfort. Since BRB is a state-owned company, the acquisition of a private bank in a delicate situation raises suspicions about possible cross-interests, political use of the institution and real impact on the population of the Federal District.