Paraguayan regulators shut down Ueno Bank over financial shortfall

The Central Bank of Paraguay announced on November 3 that it had decided on November 2 to shut down Ueno Bank. UPI, Bloomberg, and The Asuncion Times all reported that the financial regulator intervened in the institution due to solvency concerns. The decision followed months of intense scrutiny over loans made to affiliated companies as well as accounting adjustments that ultimately revealed a capital shortfall. [1][2][3]

According to UPI, the bank failed to meet regulatory requirements after its capital adequacy ratio, which measures capital against risk, fell below half of the legally required minimum. The regulatory action has left customers unable to access their funds, while about 380 million dollars in public social security investments remain awaiting recovery. [1]