Paraguay places Ueno Bank in resolution leaving customer deposits uncertain

Paraguay’s central bank placed Ueno Bank, a major digital lender, into resolution after its solvency ratio fell below half the legal minimum. The move leaves about 3 million customers and up to $850 million in public funds—including roughly $380 million from the state pension and health fund—uncertain about access and repayment. Regulators say resolution is intended to transfer deposits to stronger banks and protect customers; smaller deposits are covered by a guarantee fund, while repayment of larger balances remains unclear. The intervention also intensifies scrutiny of the bank’s links to President Santiago Peña: he was a business partner of its owner until March 2025, and critics have questioned his appointment of the bank’s former chief to lead the central bank. Peña and Ueno deny wrongdoing, and authorities say the bank’s problems do not threaten the wider financial system.