How Ueno, the Paraguayan bank that promised customers 40% cashback, went bust

Ueno, a Paraguayan online bank, collapsed after aggressive lending practices and unsustainable cashback offers led to insolvency. The Central Bank of Paraguay intervened, freezing customer deposits and initiating liquidation. Ueno's rapid growth, supported by government funds, raised concerns about financial practices, particularly loans to affiliated companies. The bank's acquisition of Visión Banco further strained its finances, prompting regulatory scrutiny. Former officials, including President Santiago Peña, face backlash for their roles in the crisis, which has broader implications for the Paraguayan financial system.