By Brazil Stock Guide – Brazil’s Central Bank has approved a R$ 840 million capital increase for two institutions tied to Banco Master, in a move to shore up the group’s balance sheet after months of regulatory and market pressure. The fresh injection will be split between Banco Master Múltiplo (R$ 420 million) and Will Financeira (Will Bank) (R$ 419 million), raising their capital bases to R$ 1.6 billion and R$ 789 million, respectively.
The decision comes only weeks after the Central Bank rejected a plan by Banco de Brasília (BRB) to acquire part of Master, citing regulatory shortcomings and concerns raised by the Federal District Prosecutor’s Office. The denial left the group, controlled by Ricardo Vorcaro, without the merger option it had been pursuing since early 2025.
This latest capital boost follows two previous injections of R$ 1 billion each, bringing total fresh funds to R$ 2.84 billion this year. The bank has faced criticism for offering unusually high yields — in some cases up to 140 % of the CDI benchmark rate — backed by risky assets such as court-ordered debt (precatórios) and lower-grade corporate bonds.