Brazil’s Central Bank has authorised two capital increases totalling nearly BRL840mn ($155.3mn) for entities linked to Daniel Vorcaro’s Master financial group, which is seeking to strengthen its liquidity position and prevent regulatory action, Valor reported.
According to the regulator, Banco Master Múltiplo received BRL421mn, raising its capital to BRL1.58bn, while Will Bank’s capital was increased by BRL419mn to BRL789mn. Banco Master declined to comment on the decision.
The group has been restructuring its portfolio through asset sales. Vorcaro recently completed the sale of insurance firm Kovr, and funds from that transaction are believed to have supported the latest capital injection.
Talks are under way to sell Will Bank, with local reports citing a potential investor group that includes TV presenter Luciano Huck.
Banco Master has also been offloading smaller portions of its loan book and seeking buyers for government debt claims (precatórios).
Central Bank data show Will Bank recorded a BRL244.7mn loss in the first half of the year. The digital lender holds BRL14.36bn in assets and BRL14.06bn in liabilities.
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