Brazil Central Bank Orders Liquidation of Will Financeira Amid Mastercard Card Suspension

Brazil’s central bank ordered the liquidation of Will Financeira SA, a unit of troubled lender Banco Master, on January 21, citing worsening financial condition, insolvency, and conflicts of interest tied to its parent company. The move follows Mastercard’s suspension of Will Bank cards due to non-compliance with payment settlement schedules. Will Financeira had been under scrutiny since last year amid a liquidity crisis fueled by short-term liabilities and illiquid assets. The central bank previously delayed liquidation in November, citing potential solutions, including a planned sale by controlling shareholder Daniel Vorcaro. That deal failed to materialize. The regulator declared the liquidation “inevitable” after market-based resolution attempts collapsed. Banco Master itself was liquidated in November amid a federal police probe into alleged fraud involving nonexistent credit securities, severe liquidity issues, and regulatory violations.