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#WATCH | Around 3 million customers in Paraguay have been left unable to access their bank accounts after the country’s central bank took control of Ueno Bank, one of its largest digital lenders, following a sharp deterioration in its financial position. The bank serves nearly 60% of Paraguay’s adult population. Its app, card and transfer services were disrupted after the Central Bank of Paraguay initiated resolution proceedings on November 2, citing a solvency ratio that had fallen below half the regulatory minimum. The crisis has triggered protests by customers seeking access to their deposits and raised concerns over the bank’s exposure to public funds. Other key developments: - Central Bank President Carlos Carvallo resigned at President Santiago Peña’s request. Carvallo previously headed Ueno’s predecessor institution. - Prosecutors ordered the arrest of eight people linked to the bank, including its CEO Federico Miguel Vázquez and bank president Juan Manuel Gustale. - Ueno had around $850 million in public funds under its administration, including approximately $380 million linked to the state pension and health fund. - The central bank has said deposits are covered by insurance of up to 228.3 million guaraníes per depositor, equivalent to around $38,000 The central bank has described the intervention as an isolated case and said the resolution process is aimed at protecting depositors and preserving financial stability. Paraguay’s banking association has also said the wider banking system remains operational.