BRASILIA, March 5, 2026, 09:49 (BRT)
- Bradesco’s preferred shares finished March 4 up 1.44% at 20.49 reais, reacting to a central bank liquidity action. InfoMoney
- Brazil’s central bank is allowing banks to subtract mandatory advance payments made to the FGC deposit insurance fund from their reserve requirements—a move the authority estimates could unlock 30 billion reais in 2026. Investing.com Brasil
- The FGC has mandated banks to front 84 months’ worth of monthly contributions through 2028 following payouts linked to Banco Master’s liquidation, according to Reuters. Investing.com Brasil
Shares of Banco Bradesco S.A. jumped in São Paulo on Wednesday, following the central bank’s decision to ease the liquidity crunch triggered by a new bank cash call to top up Brazil’s private deposit insurance fund. InfoMoney
The move carries weight for banks, which were ordered to prepay into the Fundo Garantidor de Créditos, or FGC, just as Brazil faces squeezed credit and stubbornly high funding costs. Investing.com Brasil
The central bank’s move could free up 30 billion reais ($5.7 billion) in 2026, Reuters reported Tuesday. Investing.com Brasil
Reserve requirements force banks to park a slice of their liabilities—like customer deposits—at the central bank. Banco Central do Brasil
Bradesco’s preferred shares (BBDC4) added 1.44% to close at 20.49 reais. Shares of Itaú Unibanco, Banco do Brasil and Santander Brasil also notched gains, with investors responding to the rule change. InfoMoney
The central bank has given financial institutions the green light to subtract sums advanced to the FGC—meant to help restore the fund’s equity—from their required reserves on both demand and time deposits, according to Reuters. Investing.com Brasil
The central bank said the move is designed to offset the impact of the advance to the FGC on system liquidity, Reuters reported. Banks get to decide how they split the deduction across demand and time deposit reserve requirements. Investing.com Brasil
Back in February, the FGC ruled that institutions would need to start making monthly advance payments, after hefty billion-real payouts went to Banco Master depositors following the bank’s central bank-led liquidation, Reuters said. The contributions are set to continue for 84 months, stretching out to 2028. Investing.com Brasil
Bradesco and its big-bank peers get some near-term relief on cash reserves thanks to the offset, but the long-term FGC funding requirement still stands. Investing.com Brasil
One major concern: if pressure on smaller banks escalates, the fund could face renewed calls for cash, potentially leading to a fresh round of emergency financing that the present relief package might not cover. Investing.com Brasil
