Brazil’s Central Bank orders liquidation of Will Financeira after Banco Master collapse

On Wednesday, Brazil's Central Bank ordered the extrajudicial liquidation of Will Financeira SA Crédito, Financiamento e Investimento, also referred to as Will Bank, after having resolved earlier on the day resolution measures previously applied to Banco Master.

On November 18, 2025, the central bank issued a decree to liquidate Banco Master due to issues with Will Financeira caused by its close ties to the parent group.

The act signed by Central Bank president Gabriel Galípolo notes that the measure is due to the compromise of Will Financeira's economic and financial condition, as well as its insolvency, and the interest link derived from the exercise of control by Banco Master.

The decree removes Will Financeira from the Brazilian national financial system and suspends its operations.

Impact on depositors and the role of the FGC.

As a result of the liquidation, Will Financeira's certificates of deposit are now insured by Brazil's Credit Guarantee Fund (FGC), up to a ceiling of R$250,000 per CPF (individual taxpayer registration number).

The FGC was approached about the coverage, but had not answered by the time of publishing.

Will Financeira's liquidation come after the FGC began making payments on Banco Master's certificates of deposit earlier this week, following a two-month suspension?

The fund is anticipated to distribute around R$40.6 billion to approximately 800,000 investors, making it the largest guarantee payout ever issued in Brazil.

So far, almost 600,000 requests have been registered, and 448,000 creditors have completed the application process.

Administration and asset freezes

EFB Regimes Especiais de Empresas Ltda. was appointed by the Central Bank as liquidator, replacing the same firm managing Banco Master’s liquidation.

Pursuant to the law that regulates the extrajudicial liquidation, the controllers and former directors of Will Financeira had their assets blocked.

They include Daniel Vorcaro, Armando Miguel Gallo Neto, Felipe Wallace Simonsen, Will Holding Financeira, Master Holding Financeira, and 133 Investments and Holdings.

It covered the assets of previous directors Felipe Felix Soares de Sousa and Ricardo Saad Neto.

Asset freezing is designed to conserve the assets while the extent of the liabilities and the claims of creditors are determined.

Regulatory context and rationale

The liquidation of Will Financeira magnifies the impact of the process launched against Banco Master and reflects larger steps taken by the monetary authority to close down insolvent institutions.

Extrajudicial liquidation is used when the Central Bank determines that recovery is no longer possible.

Under this regime, activities are suspended, and the institution is permanently excluded from the financial system.

This strategy varies from the Temporary Special Administration Regime, which allows activities to continue even after directors are removed, giving time for restructuring or a potential sale.

Under the instance of Banco Master, the regulator first believed that potential purchasers would emerge, allowing the bank to remain under special administration for up to 120 days.

However, the deal fell through, resulting in liquidation.

Financial profile of Will Financeira

Established in 2017 and purchased by Banco Master in 2024, Will Bank had R$14.4 billion in assets in the first half of the year, as per Central Bank figures.

The institution posted a loss of R$244.7 million and a net worth of about R$300 million. By September, Will Financier had R$6.5 billion in term deposits and no demand deposits.

Will Bank is part of Master, but operates under Banco Master Múltiplo, whose license has not been revoked recently.

Banco Master Múltiplo has been placed under the Temporary Special Administration Regime, which allows operations to continue while restructuring is completed.

Market and payments fallout

Even before the official liquidation notification, Mastercard ceased recognising transactions with Will Bank-issued cards after customer transactions were not validated within the payment system.

Mastercard provided guarantees for Will Bank's obligations and acquired large holdings in Westwing and BRB, Banco de Brasília.

Together, the measures highlight the Central Bank's efforts to mitigate the consequences of the collapse of the Banco Master group while also ensuring the overall operation of Brazil's financial system.