Millions of customers remain cut off from their accounts following the Paraguay ueno bank collapse.

The central bank put the digital lender into resolution after it breached minimum solvency rules, Reuters reported.

Pensioners who get state benefits through ueno are among those affected. Authorities have moved to guarantee deposits, and President Santiago Peña signed a law this week to speed up payouts.

The central bank’s transfer of ueno accounts to other lenders has added to outages at several banking apps.

Resolution is the strongest step the regulator can take short of closing a bank.

Supervisors had been looking into alleged excessive lending to firms tied to ueno’s controlling shareholder, Grupo Vázquez.

Founded in 2021, ueno grew into a mid-sized bank. By June, it said it had about 3 million customers.

It managed roughly US$850 million in public funds, including state and pension-related money.

Carlos Carvallo, who once led ueno, resigned as central bank chief on Tuesday. The central bank denies any conflict of interest, saying he took no part in ueno decisions.

Even so, lawmakers have questioned whether the bank was supervised closely enough.

Peña stepped down on Thursday. He said he sold his Grupo Vázquez shares in March 2025. The lender says he was never a shareholder or investor.

Opposition lawmakers accuse him of conflict of interest, misuse of pension funds and an institutional cover-up. Peña denies any improper ties.

Prosecutors say he is among those under investigation but has not been questioned. They issued arrest warrants for eight ueno executives.

Authorities say the problems are confined to ueno, though the long-term effect on Paraguay’s investment-grade reputation is unclear.

Featured image: Edited by Fintech News Switzerland, based on image by ueno bank via its website and Magnific.