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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.
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