Paraguay Banking Crisis Nearly 3 Million Ueno Bank Customers Affected

Paraguay's Central Bank took control of Ueno Bank, disrupting services for nearly 3 million customers. Pension payments are expected to continue.

By News National Editorial Team

A major banking crisis in Paraguay has disrupted access to savings and financial services for nearly three million customers after the country’s Central Bank took control of Ueno Bank, one of its largest digital lenders.

The intervention has raised concerns among depositors, pensioners and government institutions that held funds with the bank. Customers found themselves unable to use normal banking services after the regulator suspended the institution’s operations as part of a resolution process.

Why Did Paraguay Take Control of Ueno Bank?

Paraguay’s Central Bank initiated the resolution procedure on November 2, 2026, after identifying serious financial problems at Ueno Bank.

According to reports, the bank’s solvency ratio had fallen to less than half the minimum level required by law. The regulator’s intervention followed concerns about the institution’s financial position and lending practices, including loans reportedly extended to companies connected to the bank’s owners.

Under the resolution process, authorities take control of the institution, assess its financial position and work to protect depositors. The process can also involve transferring deposits and other banking operations to more stable financial institutions.

Ueno Bank reportedly served approximately 2.9 million to 3 million registered customers, representing a substantial share of Paraguay’s adult population.

Customers Face Disruption to Banking Services

Following the intervention, Ueno Bank’s regular services, including its mobile application, cards and transfers, were suspended.

Customers were consequently unable to access their accounts through the bank’s usual channels. The disruption prompted concern among depositors, with people gathering outside branches and demanding information about their savings.

The crisis also caused wider concern across the country's financial sector as some customers reportedly attempted to open accounts with other banks, putting pressure on digital banking services.

However, the suspension of normal banking operations should not be interpreted as confirmation that all customers have permanently lost their money. Authorities have begun a process to determine how deposits and other obligations will be handled.

What Happens to Pensioners?

The situation has particularly concerned retirees who received their pension payments through Ueno Bank.

Paraguay’s Social Security Institute (IPS) confirmed that approximately 32,000 pensioners had been receiving payments through the institution.

However, IPS issued an assurance that scheduled pension payments and the annual additional payment would continue. The organisation said the funds required for regular pension payments were available and that arrangements were being made to transfer the affected pensioners’ accounts to another bank.

This distinction is important: pensioners faced disruption to their banking arrangements, but the official statement did not say that their pension entitlements had been cancelled.

Will Customers Recover Their Deposits?

Paraguay has a deposit guarantee mechanism that protects eligible deposits up to approximately 228 million guaraníes, equivalent to around US$38,000 per depositor.

Preliminary estimates reported by international media indicate that this protection could cover the full deposits of approximately 97 per cent of Ueno’s depositors.

Customers whose balances exceed the guaranteed limit may face a longer recovery process. The amount they ultimately receive will depend on the bank’s financial assessment and the outcome of the resolution procedure.

Authorities are expected to examine the institution’s assets, liabilities and outstanding obligations before determining how the remaining funds will be handled.

Political and Financial Fallout

The Ueno Bank crisis has developed into a wider political controversy. Questions have been raised about the bank’s financial practices, its relationship with companies connected to its owners and reported past business links involving President Santiago Peña.

The controversy intensified after reports emerged about the bank’s lending to related businesses and the involvement of public funds. Authorities are investigating the circumstances surrounding the bank’s financial difficulties.

The situation has also triggered public protests, with depositors demanding transparency and the protection of their savings.

The case has renewed debate about banking supervision, the management of public funds and the importance of independent financial regulation.

News National Perspective

The Paraguay banking crisis highlights how the failure or intervention of a major financial institution can affect millions of customers, even when deposit protection mechanisms exist.

It also demonstrates why customers should distinguish between temporary restrictions on account access, insured deposits and the recovery of amounts above the guaranteed limit.

For now, the key issue is how quickly authorities can restore access to customers’ funds and complete the transfer of affected pension accounts. The final financial impact will become clearer as the resolution process progresses.

News National will continue to follow official announcements and developments in Paraguay.

Sources and verification

1. Associated Press report – Paraguay seizes Ueno Bank.

2. Reuters – How Ueno Bank triggered Paraguay’s political crisis.

3. Paraguay Social Security Institute (IPS) – Official pension payment assurance.

4. International Federation of Red Cross and Red Crescent Societies – Paraguay situation report.

5. MercoPress – Ueno Bank takeover and deposit guarantee details