BCB sees no relevant financial stability risks

The SFN maintains comfortable capitalization and liquidity positions, alongside adequate provisions relative to expected losses.

Capital and liquidity stress tests confirm the banking system's soundness.

The extra-judicial liquidation of the Master conglomerate had no systemic effects, with Credit Guarantee Fund (FGC) mechanisms demonstrating resilience.

Following the liquidation, customers directed funds primarily to larger financial institutions, reinforcing depositor confidence.

A BCB survey revealed 78 percent of financial institutions expressed high or total confidence in the SFN's resilience, despite concerns over fiscal risks, household and corporate debt, and international environment risks.

For the first time, institutions also noted concern about legal challenges to SFN regulators' mandates.

Credit growth continues to slow, aligning with economic moderation, affecting both households and corporations, though small business loans remain dynamic.

The capital market, while slowing since early 2025, still grows faster than bank credit, absorbing demand from large companies and rural credit.

Despite a general reduction in risk appetite by financial institutions, signs of risk propensity persist in specific non-payroll deducted credit modalities.

The new methodology for determining minimum capital aims to increase SFN resilience and align Brazil with international prudential supervision best practices, requiring adaptation by January 2028 for many institutions.