Paraguay's Central Bank Begins Resolution Process for Ueno Bank
Paraguay's central bank has started resolution proceedings for digital bank Ueno following concerns over its solvency.
The Brief
- Central bank initiates resolution proceedings after detecting solvency ratio shortfall.
- Ueno, owned by Grupo Vazquez, serves 3 million customers and manages $850 million in public funds.
- Resolution aims to protect depositors and ensure financial stability.
Paraguay's central bank has launched resolution proceedings for digital bank Ueno following an identified shortfall in its solvency ratio, according to a statement released on Tuesday.
The central bank and its president have faced pressure regarding their oversight of Ueno and its political connections. The bank, majority-owned by Grupo Vazquez, has approximately 3 million customers and manages around $850 million in public funds in Paraguay.
The resolution process is intended to safeguard depositors and maintain financial stability, with the central bank stating the case is isolated and does not indicate a broader systemic issue.
The Superintendency of Banks will appoint auditors to review Ueno's asset position as of the resolution date, the central bank added.
Oversight of Ueno has been under scrutiny recently, with several Senate members calling for the removal of the central bank's senior management after rejecting a report they deemed incomplete.
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