Business · Economy · 1 hr ago
Ueno Bank collapse leaves hundreds of thousands of accounts awaiting payment
Paraguay’s central bank closed Ueno Bank this week after it faced solvency problems.
The collapse brought weeks of financial and political tension, and Congress removed President Santiago Peña on Friday, with former vice-president Pedro Alliana taking office.
Paraguay’s foreign ministry said the country’s institutions had handled the crisis under the constitution, while foreign governments expressed support for working with Alliana.
By Saturday, about 1.196 million depositors had received payments from the deposit guarantee fund, totalling about 996 billion guaranis, or US$160 million.
Another 669,336 accounts were still pending, and the foreign ministry did not detail what would happen for those depositors.
Moody’s said the failure should not trigger a wider financial crisis if the bank’s resolution is handled quickly and in an orderly way; under Paraguayan law, 97% of covered depositors should be paid within 15 days, with a possible 15-day extension.
Moody’s Ratings says the failure of Paraguay’s Ueno Bank need not trigger a wider financial crisis if its resolution is quick and orderly.
The bank held about 8% of Paraguay’s loans and 9% of its deposits in September.
Moody’s analyst Daniel Girola said the main risk is a loss of confidence in the financial system, which he does not currently expect.
Paraguay’s central bank closed Ueno Bank this week after solvency problems.
On Saturday, the central bank said about 1.196 million depositors had received transfers, while 669,336 accounts were still awaiting processing.
- Who
- Moody’s Ratings assessed the implications of Ueno Bank’s failure. Analyst Daniel Girola discussed the assessment.
- What
- Moody’s said the failure need not trigger a financial crisis if the bank is resolved quickly and in an orderly way.
- When
- The assessment was published on Wednesday, November 5. CNN Brasil reported it on November 7, 2026.
- Where
- Paraguay.
- Why
- A quick, orderly resolution could help protect depositors and prevent a wider loss of confidence in the financial system.
This story does not have two clearly opposing sides.
Moody’s Ratings published its assessment that Ueno Bank’s failure need not trigger a wider financial crisis if the resolution is quick and orderly.
Paraguay’s central bank closed Ueno Bank after solvency problems.
Paraguay’s Congress removed President Santiago Peña, according to the foreign ministry statement.
The central bank said about 1.196 million depositors had received transfers and 669,336 accounts remained pending processing.
- Ueno’s share of loans
- About 8% of Paraguay’s system in September
- Ueno’s share of deposits
- About 9% of Paraguay’s system in September
- Depositors paid
- About 1.196 million
- Accounts pending
- 669,336
- Deposit transfers
- About 996 billion guaraníes (US$160 million)
4 sources
Deputada paraguaia diz que denunciará saques feitos antes da quebra do Ueno Bank
Relações Exteriores do Paraguai diz que país “sai fortalecido” de crise do Ueno Bank
Paraguai ainda é país com economia forte, diz vice-presidente da Moody’s
What people are saying
We do not even have a precedent in the recent history of this region.
What we know is that they carried out this resolution precisely to ensure that the solution for the bank is handled in an orderly and rapid way, and also to protect everyone who has funds in the bank.
As long as they do not lose confidence in the financial system, they will deposit their money in other banks, which will benefit from the inflow of those funds.
It is a country that is growing strongly, with controlled inflation, low interest rates and a low tax burden. All of that remains in place for now.