Macro EconomyMedium•5 November 2026•
1 min read
Paraguay Central Bank Liquidates Ueno Bank Amid Protests and Solvency Crisis
Key Facts
1Paraguay's central bank placed Ueno Bank into resolution after its solvency ratio fell below half the legal minimum.
2The collapse locked out up to 3 million customers, sparking street protests and an impeachment bid against President Santiago Peña.
3Central Bank President Carlos Carvallo resigned immediately after pulling the plug on the country's largest digital bank.
Paraguay's central bank placed Ueno Bank into resolution after its solvency ratio fell below half the legal minimum. ZeroHedge reported that the collapse locked out up to 3 million customers, sparking street protests and an impeachment bid against President Santiago Peña.
Central Bank President Carlos Carvallo resigned immediately after pulling the plug on the country's largest digital bank following a systemic failure affecting 60% of the adult population. The collapse stemmed from alleged unsecured loans to internal corporate groups and simulated loan sales used to hide financial exposure, leading to a unanimous resolution vote by the regulator as of November 5, 2026.