Business · Companies · 3 hrs ago
Paraguay intervenes in Ueno Bank as president seeks central bank chief’s resignation
Paraguay’s central bank intervened in Ueno Bank on Tuesday over a severe capital shortfall.
The move left customers temporarily unable to access their money while authorities arrange the return of deposits.
President Santiago Peña asked central bank chief Carlos Carvallo to resign, and Carvallo said he was leaving the post.
Carvallo had previously led a financial institution that became part of Ueno, raising questions about possible closeness between the bank and the government.
Peña urged lawmakers to approve emergency legislation allowing public funds to be used to repay Ueno customers.
Prosecutors opened an investigation, and a court ordered the arrest of eight bank leaders, including its president, Miguel Vázquez.
Regulators say the intervention is intended to protect depositors and limit risks to the financial system.
Paraguay’s central bank intervened in Ueno Bank on Tuesday, November 3, after its solvency fell below the required minimum.
The intervention left customers unable to access their money immediately while authorities organized the return of deposits.
President Santiago Peña requested the resignation of central bank chief Carlos Carvallo, who later formalized his resignation.
Paraguayan prosecutors opened an investigation, and courts ordered the arrest of eight bank executives, including president Miguel Vázquez.
Peña urged lawmakers to approve emergency legislation allowing public funds to be used to pay Ueno customers.
- Who
- Paraguay’s central bank intervened in Ueno Bank. President Santiago Peña requested the resignation of central bank chief Carlos Carvallo.
- What
- Regulators intervened in the bank amid a solvency crisis, suspending services and limiting customers’ access to deposits.
- When
- Tuesday, November 3, 2026.
- Where
- Paraguay.
- Why
- Regulators said the intervention was needed to protect deposits and limit the impact on the financial system after the bank’s solvency fell below the required minimum.
This story does not have two clearly opposing sides.
People unable to access their money began queuing outside Ueno Bank branches.
Paraguay’s central bank intervened in Ueno Bank, and its services were suspended.
Peña requested Carvallo’s resignation.
Carvallo formalized his resignation, and Miguel Vázquez presented himself to police.
- Bank
- Ueno Bank
- Regulator
- Central Bank of Paraguay
- Solvency requirement
- 50% minimum
- Arrest orders
- Eight bank executives, including Miguel Vázquez
- Government deposits
- About 5 trillion guaranis (US$869 million), or 29% of Ueno’s deposits at the end of June
3 sources
What people are saying
This is an isolated case of one entity, not of the national financial system
Those responsible will have to answer to justice without exception or privilege
protect depositors and preserve the stability of the financial system