Brazil central bank liquidates Banco Master's Will as Mastercard suspends cards

SAO PAULO/BRASILIA, Jan 21 (Reuters) - Brazil's cardinal slope ordered connected Wednesday the liquidation of Will Financeira SA, a portion of ​troubled lender Banco Master, successful the latest drastic measurement involving ‌illiquid institutions tied to the conglomerate.

The determination comes a time aft Mastercard said it ‌had suspended Will Bank cards from its web owed to non-compliance with colony schedules nether its payments arrangement.

Will's liquidation, the cardinal slope said successful a statement, stemmed from the firm's worsening fiscal condition, insolvency, and conflicts ⁠of involvement related to ‌its power by Banco Master, which itself was liquidated successful November.

Amid a terrible situation marked by a ample ‍volume of short-term liabilities and illiquid assets, the Master radical had since past twelvemonth faced funds being blocked arsenic collateral by Mastercard to conscionable outgo colony ​requirements.

INEVITABLE MOVE, CENTRAL BANK SAYS

The cardinal slope precocious past twelvemonth had ‌opted not to liquidate Will alongside Master - a harsher measurement that would person efficaciously closed operations - citing "the factual anticipation of a solution that would sphere the functioning" of the unit.

At a November 17 gathering with cardinal slope officials, a time earlier Master's shutdown, controlling shareholder Daniel ⁠Vorcaro said helium expected to motion ​a woody to merchantability Will Financeira the ​following day, which did not happen.

On Wednesday, the regulator said the liquidation had go "inevitable" aft attempts astatine a marketplace ‍solution failed.

Master, a mid-sized ⁠lender, was liquidated amid a national constabulary probe into alleged fraud involving the trading of non‑existent recognition securities, successful summation to ⁠what the cardinal slope described arsenic a terrible liquidity crisis, crisp fiscal deterioration ‌and superior regularisation violations.

(Reporting by Isabel Teles, Gabriel Araujo and ‌Marcela Ayres; Editing by Chizu Nomiyama )