Banco do Brasil has announced that it will allocate more than R$ 5 billion to replenish the Credit Guarantee Fund (FGC) in the aftermath of the Banco Master scandal. CFO Geovanne Tobias stated that a decision was made to accelerate contributions to the FGC by five years, which will lead to a significant outflow from the bank's treasury and impact potential earnings linked to the Selic interest rate. Alongside this, the bank will face an extraordinary contribution rise of 50%, adding approximately R$ 450 million to R$ 500 million to its financial expenses.

Tobias emphasized that while this decision entails sacrificing revenue, it is essential for ensuring the stability of the financial system. The FGC serves as a safety net for depositors, and its recapitalization is deemed necessary to maintain liquidity within the banking sector. The CFO expressed the bank’s commitment to restore this liquidity quickly to secure depositors' interests and uphold trust in the financial system following recent events.

The repercussions of the Banco Master incident highlight the importance of robust financial safeguards in Brazil's banking system, and the measures taken by Banco do Brasil reflect a proactive stance in mitigating risks and maintaining market confidence. The bank's substantial investment into the FGC illustrates a broader strategy to strengthen financial stability amidst ongoing economic challenges.