On a restless Sunday in Asunción, Paraguay’s banking community publicly pushed the country’s central bank for clarity on the health of several lenders, triggering fresh political friction. The appeal from the private-banks association arrives amid growing unease in Congress and renewed scrutiny of a relatively new player that has amassed large public deposits in a short period.
The demand for a formal solvency report follows a Senate inquiry and a wave of accusations that have left regulators, politicians and bankers trading statements instead of answers.
Bankers ask for a full accounting
The Association of Banks of Paraguay, which represents 14 private institutions, issued a statement urging the Central Bank to publish detailed findings about the financial condition of any bank that benefited from merger-related relief measures. The group said full disclosure would settle outstanding doubts and allow prompt corrective action if any institution is found to be non-compliant.
Key points from the association’s request:
- They want the Central Bank to confirm solvency for every entity that received regulatory or financial facilities tied to mergers.
- They argue transparency is necessary so regulators can act quickly if problems are detected.
- The association insisted that stability should not depend on “differential treatment” for certain institutions.
The association also criticized the Central Bank’s earlier briefing to senators as incomplete, saying unresolved questions remain — particularly about a private bank’s credit exposure to companies within its own corporate group. The identity of that bank was not disclosed in the statement.
Pressure builds in Congress and calls for the governor’s removal
The dispute escalated when senators from both the ruling party and the opposition publicly urged President Santiago Peña to remove the Central Bank’s board, singling out its president, Carlos Carvallo. Their demand followed a Senate session in which the regulator was asked to explain its oversight of several private lenders.
President Peña had, only days earlier, publicly backed the Central Bank and urged calm amid swirling rumors linked to the bank now at the center of attention. Despite the association’s statement, neither the Central Bank nor the unnamed lender has issued a public response to the bankers’ demand.
Spotlight on a fast-growing bank and public deposits
Local media coverage has focused on Ueno Bank, a relatively young institution that reportedly attracted substantial public-sector deposits within a few years. That rapid accumulation of funds has become a focal point for critics and lawmakers who question whether supervisory safeguards kept pace with the bank’s expansion.
Observers point to several potential risks:
- Concentration of public funds in a single private bank
- Possible related-party lending — loans granted to firms linked to the bank’s shareholders or group
- Insufficient disclosure around facilities granted during mergers
The association’s remarks that the Central Bank’s Senate report was “incomplete” reflect broader anxiety in the market about how exposure to related companies could affect an individual bank’s balance sheet — and, by extension, public confidence in the banking system.
Past controversies and ownership claims
This is not the first time questions about Ueno Bank’s ties and funding have stirred controversy. In 2024 President Peña dismissed media reports that the Social Security Institute had purchased 250 billion guaraníes in bonds issued by Ueno Bank, calling such coverage a media campaign and false. At the time, Juan Manuel Gustale, head of the bank, clarified that Peña was a shareholder in Ueno Holding rather than in the bank itself. Peña later stated in April 2025 that he had divested those shares.
The history of public allegations, ownership clarifications and competing narratives has contributed to a charged atmosphere in which regulators, politicians and private banks are all under pressure to explain their actions — or to step aside while answers are sought.
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Gavin Turner is a crypto market analyst with over seven years studying price fluctuations and trading volumes in the United States. He provides detailed reports on sector trends and key indicators to help you anticipate market moves. His rigorous methodology and reliable forecasts guide you in refining your crypto trading strategies.
