Home / Business and Economy / Brazil Central Bank Seizes Pleno Bank Amid Fraud Probe
Brazil Central Bank Seizes Pleno Bank Amid Fraud Probe
18 Feb
Summary
- Brazil's central bank has liquidated Banco Pleno and its affiliate.
- The move is linked to an ongoing fraud investigation into Banco Master.
- Pleno's collapse may increase strain on Brazil's deposit insurance fund.
Brazil's central bank initiated the liquidation of Banco Pleno SA and its affiliate, Pleno Distribuidora de Títulos e Valores Mobiliários SA, on February 18, 2026. The regulator cited Pleno's deteriorated liquidity situation and violations of central bank directives as reasons for the action.
These measures are directly linked to the ongoing fraud investigation and the subsequent liquidation of Banco Master SA in November 2025. Executives from Banco Master, including its CEO Daniel Vorcaro, were arrested on allegations of fabricating and selling fraudulent credit instruments.
Banco Pleno, which held a negligible 0.04% of Brazil's financial system assets, was formerly known as Banco Voiter and had been acquired by Banco Master in 2024 before being sold to Augusto Lima, a former Master partner, last year. Lima was also arrested alongside Vorcaro but later released on an ankle monitor.
The liquidation of Pleno is anticipated to exacerbate the financial burden on the Fundo Garantidor de Créditos (FGC), Brazil's deposit insurance fund. The FGC already faces a significant impact from the Banco Master collapse, estimated at 55 billion reais ($10.5 billion), which will require replenishment by other Brazilian banks.
