Paraguay places Ueno Bank into resolution

The Central Bank of Paraguay placed Ueno Bank into resolution on November 3 after the lender’s solvency ratio fell below half the legal minimum, leaving about 3 million customers without access to its services and raising questions over public funds invested in the bank. The central bank said its board voted unanimously on November 2 to begin the process. Regulators took control of the lender and suspended its app, cards and other services. Resolution allows authorities to assess the bank’s assets and liabilities and arrange for deposits to be transferred or repaid. The central bank has said the case does not indicate broader problems in the country’s financial system. Ueno says it serves about 3 million customers, equivalent to roughly 60% of Paraguay’s adult population. The state social security agency, Instituto de Previsión Social, or IPS, has about US$380 million invested in Ueno bonds and term deposits. IPS finance manager Gladys Vera said November pension payments would continue through other banks, including for about 32,000 retirees who had received payments through Ueno. IPS says it will pursue legal action to recover its investment, but the amount it may recover has...