BCB intervenes in Banco Morada on several accounts

- Thursday, April 28, 2011

BCB intervenes in Banco Morada on several accounts

Brazilian central bank BCB has intervened in Banco Morada on several accounts, including liquidity woes and breaching rules of the national monetary council CMN and BCB itself, a press release from the central bank reads.

BCB added that Morada was intervened in due to a "failure of its controllers to present a viable recovery plan for the institution."

Banco Morada is a small bank that operates as a lending, finance and investment institution, with only one branch operating in Rio de Janeiro. As of December 2010, it commanded only 0.01% and 0.03% of assets and deposits, respectively, in Brazil's financial system.

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Close to 32% of all deposits are covered by deposit insurance fund FGC. BCB said that following intervention and review of the bank's financial statements, it could lead to "punitive administrative measures" and a report to the appropriate authorities on the matter.

To read BCB press release in full, in Portuguese, go to this link