Ueno Bank in Paraguay has collapsed leaving 3 million people without money. Paraguayan President Santiago Peña submitted his resignation and faces unanimous impeachment by the lower house of Congress. The bank had ties to the Trump administration via the country’s President.
About 60% of adults in the country used the bank. People are turning up at the bank’s office. $37600 US dollars per customer is (was) the average deposit.
Paraguay’s state pensions have roughly $355 million invested in the institution, creating a direct link between private bank governance and public finances.
This collapse also tests the limits of national deposit protection; existing guarantee schemes were designed to absorb the failure of smaller institutions, not a lender serving the majority of the population. The central bank regulator head previously worked at Ueno. https://www.retailbankerinternational.com/news/ueno-bank-collapse-exposes-oversight-gaps-digital-banking-globaldata/?cf-view
Ueno Bank collapse exposes oversight gaps in digital banking sector: GlobalData - Retail Banker International