Paraguay's central bank announced resolution proceedings for Ueno on November 3, five days after the digital lender outlined a $100 million capital plan. Its solvency ratio had fallen below half the required minimum, ABC Color reported, citing the regulator.
At a press conference reported by ABC Color, BCP president Carlos Carvallo said supervisors began investigating in June after finding indications that Ueno had lent to companies linked to its controlling group. He also cited deteriorating liquidity as a reason for the resolution.
The privately held bank offered accounts, loans and payments through its app and physical network. Ueno reported more than 3 million customers in its October 29 announcement; the resolution initially left its cards and accounts unavailable.
Ueno's capital plan called for a $50 million contribution from controlling shareholder U Holdings, expected in November, and a $50 million share program for private Paraguayan investors. The bank said it expected to implement the share program within 60 days, subject to regulatory approval. Ueno had issued a $350 million senior unsecured international bond on March 3, according to its May investor presentation.
By November 5, some depositors had begun receiving guarantee payments through other financial institutions, Última Hora reported, citing customers who confirmed credits to their accounts.