Paraguay intervenes in Ueno Bank, freezing millions of accounts

The Central Bank of Paraguay intervened in Ueno Bank early Tuesday, November 3, beginning a resolution process that shut down the country’s largest digital lender and cut off access to accounts for nearly three million customers. The bank’s app, cards and other services stopped working as the intervention took effect. The central bank said Ueno’s depositors are guaranteed up to 228 million guaranies, approximately US$37,700 to $38,000, with payment due within 15 days. The period can be extended once by another 15 days. A preliminary estimate cited by central bank board member Marco Aurelio González indicated that about 97% of depositors held balances within the guarantee limit. The central bank has not promised full repayment of deposits above that amount. The intervention followed a sharp deterioration in the bank’s solvency ratio. The Superintendency of Banks found that Ueno could not meet a legal reserve requirement of $70 million, according to reports on the regulatory finding. The central bank said it would take control of the bank and oversee the resolution. Prosecutors also ordered the detention of eight senior executives and people connected to the lender, including...