Gilneu Vivan, the director of Regulation and Organization of the Financial System at the Central Bank of Brazil, stated that there are valuable lessons to learn from the Master bank case during an event hosted by the Brazilian Bankers Association (ABBC). He applauded the legal and regulatory framework put in place by the Central Bank but emphasized the need for certain adjustments. One of the primary concerns raised was the speed at which investors in the Master conglomerate were reimbursed by the Deposit Guarantee Fund (FGC), a financial safety net for depositors in the event of a bank failure.

Vivan pointed out that the framework has two main objectives: protecting the average depositor and ensuring stability in the financial system. He reported that 85% of investors affected by the Master case have already been compensated by the FGC, indicating that the system has functioned effectively. Furthermore, he noted that there has been no significant impact on the deposit-taking structures of small and medium-sized banks, suggesting that the consequences of the Master case have been properly contained and managed.

The insights shared by Vivan highlight an ongoing effort by the Central Bank to enhance its regulatory mechanisms while ensuring the protection of depositors. The call for improvements in the reimbursement process underscores the authority's commitment to swift and efficient handling of financial crises to maintain public trust in the banking system. As such, a thorough examination of the regulatory responses to the Master case could influence future policies and practices within Brazil’s financial landscape.