Gabriel Galípolo, the president of Banco Central do Brasil, addressed an event hosted by BTG Pactual on November 11, emphasizing the necessity of improving regulations following problems with Banco Master. He revealed that the Central Bank is currently studying several measures aimed at enhancing market supervision and implementing stricter rules around the Credit Guarantee Fund (FGC). Galípolo highlighted the importance of establishing clear limits on how much financial institutions can leverage third-party funds, and the need for them to hold a portion of these resources in safer assets, such as government bonds, to provide better protection against potential risks.

In addition to fund management, Galípolo mentioned a public consultation regarding the quality of assets held by financial institutions. This measure aims to ensure that organizations that collect deposits from individual investors do not mismanage these funds by investing in long-term, illiquid assets while maintaining the capacity for customers to withdraw their funds at any time. The intention is to align the investment strategies of these institutions with the liquidity needs of depositors, to avoid the mismanagement of funds, akin to the issues experienced at Banco Master.

Galípolo's remarks point to a proactive approach by the Central Bank to prevent future liquidity crises within the banking sector while simultaneously protecting consumers. This initiative reflects the ongoing recovery efforts and regulatory strengthening within Brazil's financial landscape, especially in light of past failures that have raised concerns about market stability and investor confidence.