Stress-testing Brazil’s credit co-operative safety net
Rapid growth in credit co-operatives has made a public test of FGCoop’s liquidity, replenishment and resolution capacity necessary, argues Gustavo Pessoa
Brazil has just learnt how different a deposit guarantee fund looks once a tail event stops being hypothetical. Following the 2025–26 liquidations of Banco Master group entities, Will Financeira and Banco Pleno, the conventional bank Credit Guarantee Fund (Fundo Garantidor de Créditos, FGC) estimated BRL51.7 billon ($10 billion) in guarantee payments and a combined BRL57.4 billion impact from assistance and liquidations. By late April, FGC said it had paid about BRL49 billion to almost 870,000
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