By Brazil Stock Guide – Former Brazil Central Bank President Roberto Campos Neto said Monday (23) that the institution’s leadership cannot be held responsible for irregularities linked to Banco Master, arguing that oversight of mid-sized lenders does not fall under the direct purview of the central board.
The statement comes as Brazil’s federal comptroller general investigates alleged irregularities between 2019 and 2023, a period overlapping with Campos Neto’s tenure. Administrative proceedings target former central bank officials, including ex-supervision director Paulo Sérgio Neves de Souza and former banking supervision head Belline Santana.
Campos Neto said both officials were career staff who joined the institution prior to his administration and remained in their roles after his departure at the end of 2024.
He emphasized that Brazil’s financial system is structured by tiers, with large institutions — classified as S1 and S2 — subject to direct oversight by the central bank’s executive board. Mid-sized lenders in the S3 category, such as Banco Master, fall under technical supervision departments.
Banco Master, controlled by Daniel Vorcaro, accounted for roughly 0.57% of total system assets, placing it within the mid-sized segment.
In a statement, his press office said: “They are career staff who were already in place before Roberto Campos’s administration and remained until last year. Director Paulo left the board and took on a deputy head role at the banking supervision department, which monitored small and mid-sized banks, and stayed there until the liquidation.”
The statement added: “The two officials relied on internal staff from the bank itself. The Central Bank presidency does not deal with specific operations of S3 institutions and cannot be held responsible for failures committed by third parties. The supervision area has a longstanding tradition of career staff, which was maintained during Roberto Campos Neto’s tenure.”
Leave a Reply