BRB Submits Capital Plan to Central Bank After Master-Linked Losses

Overview

• The bank filed a confidential plan that would be activated within 180 days only if a capital need is verified.
• BRB withheld figures pending audits and probes into R$12.2 billion in Master portfolios, while the Central Bank indicated an indicative R$5 billion gap.
• Management is prioritizing market solutions, including selling the acquired credits, tapping an FGC credit line or a bank consortium, and structuring a DF-backed real-estate fund.
• A direct capital injection by the Federal District was set aside for now, with any use of public assets contingent on approval by the DF Legislative Chamber.
• To reinforce liquidity, BRB has already sold about R$5 billion in high-quality assets and aims to finalize its 2025 accounts by March 31.