Brazil's Central Bank Shuts Down Simpala Financial Companies
Listen to the story
Brazil's Central Bank has ordered the closure of two companies belonging to the Simpala group.
The Central Bank decreed an extrajudicial liquidation for a consortium administrator and a finance company connected to Simpala. This type of closure lets a government agency shut a company down without a court order first.
According to the Central Bank, the decision came after it found 'serious violations' at the companies. The exact nature of these violations has not been fully detailed.
This case is linked to a wider situation that began with the collapse of the Master bank. Since that case started, the number of financial institutions shut down by the Central Bank has now reached 19.
Consortium administrators are companies that manage group savings plans, where members pay money together to eventually buy items like cars or homes. Finance companies, meanwhile, typically lend money or manage financial products for clients.
The Central Bank is Brazil's main financial regulator. It has the power to inspect banks and financial firms and to close them if they break important financial rules.
So far, no further information has been released about what specifically happened at the Simpala companies. The Central Bank has not announced whether any other Simpala-related companies could face similar action.
Vocabulary7 words
- Central Bank
- the main bank that controls a country's money system
- extrajudicial liquidation
- closing a company by official order, without going to court first
- consortium administrator
- a company that manages group savings plans for buying things
- finance company
- a business that lends or manages money for people
- institutions
- official organizations, such as banks or financial companies
- regulator
- an organization that checks and controls how businesses operate
- violations
- actions that break important rules or laws
Quiz
Answer key
1. It ordered their extrajudicial liquidation 2. Because of 'serious violations' 3. The Master bank case
Fill-in-the-blank listening
Play the audio again and fill in the missing words as you listen.
Brazil's Central Bank has ordered the closure of two companies belonging to the _____ group.
The Central Bank decreed an extrajudicial _____ for a consortium administrator and a finance company connected to Simpala.
This type of closure lets a government agency shut a company down without a _____ order first.
According to the Central Bank, the decision came after it found 'serious _____' at the companies.
This case is linked to a wider situation that began with the collapse of the _____ bank.
Since that case started, the number of financial institutions shut down by the Central Bank has now reached _____.
The Central Bank is Brazil's main financial _____.
It has the power to inspect banks and financial firms and to close them if they break important financial rules.