Paraguay Begins Liquidation Proceedings for Major Digital Bank Ueno
I am glad that I always advised clients to avoid this "institution".
I do not praise any Py bank, but this one had a lot of red flags along the way. It also has a bad reputation among people working in the sector, which isn't a determining factor, since these old banking clans don't like competition, but in this case, it is justified.
This fallout also has its precedent in a power struggle within the country's ruling "Colorado Party". The rising stars (tied to Ueno) challenged the old ruling class around former president Horacio Cartes. He showed them who rules the country.
It was the biggest bank by number of customers, but usually targeted unbanked, low-income people. By assets, it was top 7. Most customers will recover 100% of their balances under the BCP guarantee scheme (up to 25k USD).
The bigger issue is IPS (social fund) and other public institutions holding deposits worth a total of almost 1 billion USD.
The biggest risk is that distrust spreads through the system and people start withdrawing money en masse from other banks and financial institutions.
On the positive side, the dollar may finally start to recover against the guarani, and life gets cheaper for us.
I am glad that I always advised clients to avoid this "institution".
I do not praise any Py bank, but this one had a lot of red flags along the way. It also has a bad reputation among people working in the sector, which isn't a determining factor, since these old banking clans don't like competition, but in this case, it is justified.
This fallout also has its precedent in a power struggle within the country's ruling "Colorado Party". The rising stars (tied to Ueno) challenged the old ruling class around former president Horacio Cartes. He showed them who rules the country.
It was the biggest bank by number of customers, but usually targeted unbanked, low-income people. By assets, it was top 7. Most customers will recover 100% of their balances under the BCP guarantee scheme (up to 25k USD).
The bigger issue is IPS (social fund) and other public institutions holding deposits worth a total of almost 1 billion USD.
The biggest risk is that distrust spreads through the system and people start withdrawing money en masse from other banks and financial institutions.
On the positive side, the dollar may finally start to recover against the guarani, and life gets cheaper for us.