Ueno Bank: How a Digital Lender Triggered Paraguay’s Financial and Political Crisis
Ueno Bank’s resolution left millions of customers temporarily unable to access their accounts and put the savings of individuals, businesses and public institutions at risk. The case became a political crisis when the relationships among the bank, its controlling business group, the head of Paraguay’s central bank and then President Santiago Peña came under scrutiny. […]
Ueno Bank's collapse exposed millions of customers' savings and tens of millions in public funds, creating a financial and political crisis in Paraguay. The resolution process revealed potential issues with the bank's supervision and the handling of public money. Ueno Bank, originally Financiera El Comercio founded in 1976, became one of Paraguay's largest banks after merging with Visión Banco in 2023 and receiving approval to operate as a bank in 2022.
By June 2026, the bank had around three million customers in a population of 6.5 million. Ueno claimed to have US$4.2 billion in assets, US$2.5 billion in loans and US$2.8 billion in deposits as of June 2026, but the Central Bank of Paraguay (BCP) stated that adjustments during the remediation process reduced the bank's solvency ratio below the required minimum.
The investigation revolves around loans and overdrafts to companies connected to the bank's controlling group, alleged excessive concentration of deposits, and potential financial crimes. The bank managed funds ranging from US$800 million to US$850 million for state institutions and pension-related bodies, with US$295 million from the Social Security Institute and US$532 million from other public institutions.
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