Paraguay’s central bank has begun a resolution process for Ueno Bank, one of the country’s main digital banks, after finding that its financial position had deteriorated. The decision was adopted unanimously on November 2 and announced the following day, according to the report. The bank’s solvency ratio had fallen to less than half the regulatory minimum.
The process suspends access to accounts, cards, apps and other services while authorities examine the bank’s assets and liabilities. Deposits are expected to be transferred to other institutions.
The crisis also puts about $380 million invested in Ueno Bank by the Social Security Institute (IPS) at risk. The institute has said pension payments to around 32,000 retirees will continue.
Authorities are examining loans made to companies linked to the bank’s controlling group, as well as irregularities in accounting documents. The case has also become a political issue for President Santiago Peña, who previously held stakes in the bank’s parent holding company.
Sources: ANSA Mondo.