# Ueno Bank Collapse Sparks Paraguay's Political Crisis

> Paraguay's president resigned after his bank's collapse triggered a financial crisis.
- Title: Ueno Bank Collapse Sparks Paraguay's Political Crisis
- Summary: Paraguay's president resigned after his bank's collapse triggered a financial crisis.
- Keywords: paraguay, santiago pena, ueno bank, paraguayan bank, financial crisis, political crisis, president resignation, central bank, The Straits Times
- Source: The Straits Times — https://straitstimes.com/world/explainer-what-is-ueno-bank-and-how-did-it-trigger-paraguays-political-crisis
- Published: 2026-11-05T19:38:01+00:00
- Read time: 1 min
- Topics: paraguay, santiago pena, ueno bank, paraguayan bank, financial crisis, political crisis, president resignation, central bank, news, world
## What is Ueno Bank?
Ueno is a digital lender that grew rapidly from a niche local fintech company into a mid-sized Paraguayan bank.
## Ueno's Rapid Expansion
Launched in 2021, ueno had 3 million customers in a country of 6.5 million people by June 2026.
## Ueno's Financial Scale
Ueno administered roughly $850 million in public funds including state institutions and pension-related bodies.
## Regulatory Scrutiny
Ueno came under regulatory scrutiny over alleged excessive lending to companies linked to its controlling shareholder, Grupo Vázquez.
## President Peña's Ties
President Santiago Peña resigned after ueno's collapse, having sold his stake in Grupo Vázquez by March 2025.
## Central Bank Intervention
Paraguay's central bank intervened after ueno breached minimum solvency requirements, triggering a crisis.
## Account Access Issues
Millions of customers temporarily unable to access accounts, including pensioners receiving state benefits.
## Key takeaway

Paraguay's president Santiago Peña resigned following ueno bank's collapse, which left millions unable to access accounts.