The Central Bank of Paraguay (BCP) announced on Tuesday, 3 November 2026, that it had initiated a formal resolution procedure for Ueno Bank. The decision follows the discovery of serious solvency deficiencies during the bank’s regulatory review. Authorities say the measure aims to protect depositors and maintain stability across Paraguay’s financial system.
The BCP unanimously approved the decision on Monday, 2 November, under Law No. 2334/03. The announcement came hours after Ueno Bank denied receiving notification of measures involving the Deposit Guarantee Fund. Following the announcement, Ueno Bank account holders reported that they have been unable to view their balances, withdraw money or make transactions. The bank’s mobile application, debit cards and credit cards were unavailable on the morning of 3 November.
Why did the BCP initiate the procedure?
According to the BCP, adjustments to Ueno Bank’s financial statements revealed that its solvency ratio had fallen below 50% of the regulatory minimum. The findings emerged during a regularisation process involving the financial institution. The BCP subsequently decided to initiate a resolution procedure, a legal mechanism for addressing serious financial difficulties at regulated institutions.
The Superintendency of Banks will appoint officials to assess the bank’s financial position as of the resolution date. Their responsibilities include preserving the institution’s assets and overseeing the procedures established under Paraguayan law. The BCP stated that “the situation concerns one institution rather than the wider banking sector”. It described the case as “an isolated matter that does not indicate broader financial instability”.
What happens to Ueno Bank customers?
The BCP identified depositor protection as a central priority of the resolution procedure. Under Paraguay’s Deposit Guarantee Fund (Fondo de Garantía de Depósitos, FGD), eligible deposits are protected up to 75 monthly minimum wages. This currently represents a maximum guarantee of ₲228,300,000 (approximately US$38,270) per depositor, per financial institution. The protection applies to individuals and businesses, rather than separately to each bank account.
For customers holding multiple accounts at Ueno Bank, the guarantee limit applies to their combined eligible deposits. The BCP also intends to pursue legal mechanisms to protect balances exceeding the guaranteed amount wherever possible.
Ueno customers unable to access funds and cards
Following the BCP’s announcement, Ueno Bank account holders reported that they have been unable to view their balances, withdraw money or make transactions. The bank’s mobile application, debit cards and credit cards were unavailable on the morning of 3 November. Under Paraguay’s banking resolution framework, authorities have up to 15 calendar days to arrange the return of guaranteed deposits. This places the initial deadline on 17 November 2026, although an extension may be granted.
However, this timeframe does not guarantee that Ueno’s banking services will resume. The BCP will announce how and when customers can recover their funds. During Tuesday’s press conference, BCP director Diana Caballero said authorities were working continuously to shorten the waiting period. The regulator also announced that it would investigate potential responsibilities arising from the bank’s financial situation. Sanctions may follow where legally justified, alongside notifications to other competent authorities.
Ueno Bank’s previous statement and what comes next
On Monday, 2 November, Ueno Bank rejected reports suggesting that authorities were preparing to activate deposit protection measures. The institution stated that it had received no notification from the BCP concerning the Deposit Guarantee Fund. It also maintained that its services were operating normally and criticised the circulation of unverified information. That statement preceded the BCP’s announcement early on Tuesday, confirming the formal resolution procedure.
The controversy follows weeks of public scrutiny surrounding Ueno Bank’s regulatory position and its relationship with Paraguay’s financial authorities. Previous questions involved lending to related companies, supervisory decisions and an ongoing administrative investigation.
Despite the seriousness of the latest development, the BCP stressed that the resolution concerns Ueno Bank specifically. The regulator said its objective remains protecting depositors and preserving confidence in the wider financial system. Depositors, stated the regulator, are encouraged to follow official announcements rather than unverified reports circulating online.
Also read: Digital Payments Now Account For Over 80% Of Service Transactions In Paraguay
