By Brazil Stock Guide – Brazil’s Central Bank ordered on Wednesday the extrajudicial liquidation of Will Financeira S.A. Crédito, Financiamento e Investimento, marking the collapse of another entity linked to the former Master financial conglomerate. Will Financeira is controlled by Banco Master Múltiplo S.A., which has been operating under a Special Temporary Administration Regime (RAET) since the regulator decreed the extrajudicial liquidation of Banco Master in November 2025.
The Master Conglomerate had been classified by the Central Bank as a diversified credit institution of small size, falling under the S3 tier of Brazil’s prudential regulation framework. At its peak, the group represented 0.57% of total assets and 0.55% of total funding within Brazil’s National Financial System, with Banco Master S.A. acting as the leading institution.
When Banco Master was placed into extrajudicial liquidation on November 18, the Central Bank opted to impose a RAET on Banco Master Múltiplo in an attempt to preserve the operations of Will Financeira, which provided credit and financial services to retail clients. That strategy, however, unraveled this week after Will Financeira failed to meet its payment obligations under the Mastercard payment arrangement.
According to the regulator, on January 19 Will Financeira breached its payment schedule with the Mastercard scheme, leading to the suspension of its participation Mastercard Brasil The disruption effectively cut off the institution from a critical part of its transactional infrastructure, accelerating liquidity stress and rendering any recovery plan unviable.
The Central Bank said the extrajudicial liquidation became unavoidable due to the deterioration of Will Financeira’s economic and financial condition, its insolvency, and the conflict of interest arising from the exercise of control by Banco Master, which is itself already under liquidation.
The regulator added that it will continue to pursue investigations to determine liabilities within the scope of its legal authority. These proceedings may result in administrative sanctions and referrals to other authorities, in accordance with Brazilian law. As required by statute, the assets of controlling shareholders and former executives of Will Financeira are now frozen pending the outcome of the liquidation process.
The extrajudicial liquidation of Will Bank is expected to raise the bill to be paid by the Credit Guarantee Fund (FGC) in the Banco Master case to close to R$48 billion, up from the current estimate of R$40.6 billion, according to people familiar with the matter.
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