Brazil’s central bank ordered the liquidation of troubled lender Will Financeira SA, a unit of Banco Master, due to insolvency and conflicts of interest. Mastercard had suspended Will Bank cards for non-compliance, leading to the drastic step involving illiquid institutions tied to the conglomerate.

The central bank had initially avoided liquidating Will alongside Master, hoping for a market solution to preserve its operations. However, the regulator deemed liquidation inevitable after attempts at a deal failed. Master, a mid-sized lender linked to a federal police fraud probe, faced severe liquidity issues and rule violations.

Amid a severe crisis marked by blocked funds and illiquid assets, the Master group struggled to meet payment settlement requirements. Will’s worsening financial condition and control by Banco Master led to its liquidation, following the parent company’s closure in November. The central bank said the move was necessary given the firm’s insolvency.

Read more at Yahoo Finance: Brazil central bank liquidates Banco Master’s Will as Mastercard suspends cards