In a surprising move that shook the financial market, the Central Bank of Brazil announced on February 15, 2023, the extrajudicial liquidation of BRK Financeira (OFFICIAL ARTICLE).
This drastic action was motivated by the institution’s deteriorating equity combined with significant violations of current regulations, creating unexpected risks for unsecured creditors.Impact of the central bank’s decision.
The complexity of the situation led the Central Bank to appoint Veritas Empresarial Resolution Regimes to conduct the liquidation process.
At the time of the announcement, BRK Financeira managed 15 Certificates of Deposit (CDBs) in the market, mostly linked to the CDI and one linked to the National Consumer Price Index (IPCA).The Central Bank’s decision had direct repercussions for investors who held CDBs issued by BRK Financeira.
After the announcement, there was a rush for information on how the investments would be reimbursed. The financial institution issued clarification data stating that the redemptions would be facilitated by the Credit Guarantee Fund (FGC).
This fund protects investments up to R$ 250,000 per CPF per institution, with a maximum of R$ 1 million, renewable every four years.Did investors have their money saved?.
The Credit Guarantee Fund (FGC) is a private entity that protects depositors and investors in cases of bankruptcies or interventions authorized by the Central Bank. With the liquidation of BRK Financeira, the FGC became crucial for the restitution of values to the affected creditors.
Interested parties must request payment of the guarantee through the FGC application, a completely digital procedure that eliminates the need for physical submission of documents.
For impacted investors, the procedure to receive the funds starts with downloading the FGC application. The initial access allows for basic registration and initiates the guarantee withdrawal process.
It is important to note that the procedure is only completed after the FGC receives the necessary information from the liquidator.
Once the request is approved, the payment is made directly to the applicant’s checking or savings account.This episode serves as a critical reminder for investors about the importance of portfolio diversification and awareness of protection systems, such as the Credit Guarantee Fund.
Actions like this reinforce the security structures of the national financial system, despite causing concerns at the time of their execution.Importance of the FGC for consumers of these functionsPaying attention to financial risks and protection mechanisms like the Credit Guarantee Fund (FGC) is crucial for any investor.
The FGC acts as a safety net, ensuring that deposits and investments, up to a limit of R$ 250,000 per CPF per institution, are protected in the event of bankruptcy or intervention by financial institutions.
This fund provides peace of mind and confidence to investors, ensuring that even in adverse scenarios, such as the extrajudicial liquidation of BRK Financeira, the invested resources are recovered.
Being aware of this protection not only minimizes risks but also reinforces the need for portfolio diversification, preventing a single adverse event from significantly compromising the investor’s assets.
