Central Bank of Brazil Decrees Extrajudicial Liquidation of Will Bank

Central Bank Orders Liquidation of Will Bank

The Central Bank of Brazil decreed the extrajudicial liquidation of Will Financeira S.A. Crédito, Financiamento e Investimento, widely known as Will Bank, on Wednesday, January 21, 2026. The decision was officially announced following a critical default on payments to Mastercard Brasil Soluções de Pagamentos Ltda., which occurred on January 19, 2026. This failure led to the immediate blocking of Will Bank's participation in the Mastercard payment arrangement, exacerbating its already precarious financial state.

The Central Bank cited a 'compromised economic and financial situation,' 'insolvency,' and the 'vínculo de interesse evidenciado pelo exercício do poder de controle do Banco Master' (link of interest evidenced by the exercise of control of Banco Master) as primary reasons for the liquidation. This action removes Will Financeira from the Brazilian national financial system and suspends its operations.

Connection to Banco Master and Prior Events

Will Bank operated as a digital arm of the Banco Master conglomerate. Its parent entity, Banco Master S/A, had already been placed under extrajudicial liquidation on November 18, 2025. Following the liquidation of Banco Master, Will Bank's controlling entity, Banco Master Múltiplo S/A, was operating under a Special Temporary Administration Regime (RAET). The Central Bank initially sought a solution to preserve Will Financeira, but this proved unfeasible, particularly after the default on Mastercard payments.

Will Bank, established in 2017 and acquired by Banco Master in 2024, had reported R$14.4 billion in assets in the first half of 2025 and a loss of R$244.7 million. By September 2025, it held R$6.5 billion in term deposits. The digital bank served approximately 10 million users. Prior to the liquidation, there were discussions regarding a potential sale of Will Bank, with figures like Brazilian TV host and entrepreneur Luciano Huck reportedly showing interest, but these negotiations did not materialize.

Impact on Customers and Mastercard's Response

The liquidation has left Will Bank customers without access to their funds, with the bank's application reportedly down, Pix (Brazil's instant payment system) frozen, and cards blocked. Deposits held with Will Bank are protected by Brazil's Credit Guarantee Fund (FGC) up to a limit of R$250,000 per CPF (individual taxpayer registration number). The FGC is already managing a significant payout for Banco Master investors, estimated at around R$40.6 billion for approximately 800,000 investors, and the Will Bank liquidation will add to this burden.

Mastercard had already suspended the acceptance of Will Bank cards on January 20, 2026, a day before the official liquidation decree, due to the digital bank's failure to honor transaction payments. In response to the default, Mastercard executed guarantees on Will Bank's debts. This action resulted in Mastercard acquiring a 31.87% stake in the home decor company Westwing and a 6.93% stake in Banco Regional de Brasília (BRB). Mastercard has stated its intention to sell these acquired shares and does not plan to maintain these shareholdings.

The Central Bank has appointed EFB Regimes Especiais de Empresas Ltda. as the liquidator for Will Financeira, the same firm managing Banco Master's liquidation. Furthermore, the assets of Will Financeira's controllers and former administrators have been frozen as part of the liquidation process.