Brazil has signed a $1.2 billion rescue package for Banco Master into law, marking a decisive government intervention to stabilize the state-owned lender amid a widening financial crisis.
The legislation formalizes the bailout plan, aiming to protect billions in deposits and prevent a disorderly collapse of the institution.
The move comes as Brazilian Federal Police have frozen 670 million reais in assets at Digimais, a digital lender owned by billionaire evangelical bishop Edir Macedo.
The move comes as Brazilian Federal Police have frozen 670 million reais in assets at Digimais, a digital lender owned by billionaire evangelical bishop Edir Macedo.
The raid is part of an ongoing investigation into alleged accounting fraud, which has intensified scrutiny on the broader banking sector.
Ratings agency Fitch recently downgraded Digimais, explicitly warning that the institution's failure is a real possibility.
The crisis surrounding Banco Master and Digimais highlights vulnerabilities in Brazil's financial system, particularly regarding governance and regulatory oversight.