Brazil’s central bank Banco Central do Brasil has decided to close two of its prominent banks Banco Cruzeiro do Sul and Rio de Janeiro’s Banco Prosper, after it failed to get a buyer.

This marks one of the largest failures of Brazilian banks during the last seven years, mainly pushed by economic slowdown and stringent banking regulations, reported the Financial Times.

The apex banking regulator of Brazil said it has decided to liquidate the aforesaid banks, as it could not find a buyer, which could invest in them to keep them running.

The central bank also accounted its decision to increased competition in the banking sector, slower demand of credit, insufficient business acumen and a series of fraud compounded by "Basel III".

Cruzeiro do Sul bankrupted due to losses sustained by the numerous smaller lenders during the last two years.

"The central bank will continue to take appropriate measures to investigate who is responsible [for Cruzeiro do Sul’s losses] . . . which could lead to the application of punitive measures," the central bank said in a statement, as reported by the newspaper.