Paraguay's Central Bank intervenes in Ueno Bank and freezes millions' savings
The digital bank's solvency ratio fell below 50% of the required minimum; the institution has 3 million customers, BBC says.
Translated from the Portuguese original by the Panorama newsroom. Read in Portuguese
Summary written by the Panorama newsroom from the sources listed below. Facts are attributed to the original publications.
The Central Bank of Paraguay (BCP) decreed in the early hours of Tuesday (3) the intervention of the digital bank Ueno Bank, after detecting that its solvency ratio had fallen below 50% of the required minimum, according to BBC News Mundo. The decision was unanimous and led to the immediate shutdown of services.
Customers reported that they could not operate through ATMs or the app. "Neither the app, nor the cards, nor any service of the entity is active," confirmed Liana Caballero, a member of the BCP board.
Ueno says it has 3 million customers, equivalent to 60% of the country's adults, and manages more than US$ 800 million in public money, including about US$ 380 million from the state pension fund.
The BCP activated the resolution process, which freezes assets and liabilities until it is defined how the obligations will be covered. The agency's president, Carlos Carvallo, said he will report how savers covered by the guarantee will be able to recover their funds.
The Deposit Guarantee Fund covers up to 228 million guaraníes per person, about US$ 38,200. Those with amounts above that will have to wait for the final balance sheet from the Superintendency of Banks.