The liquidation of Ueno Bank in Paraguay has set off a political crisis, and experts are now drawing comparisons with Brazil’s Banco Master case. The bank held about $850 million in public funds, including money from the IPS pension institute.
Scale of the exposure
Ueno says it has 3 million clients, equal to about 60 percent of Paraguay’s adult population. That reach is what separates the two cases, according to Thiago Amâncio, associate director of Control Risks’ geopolitical risk team.
Amâncio said the cases share several features. Both involved significant exposure of public funds, including pensions, fast growth built on fragile assets, and close ties to politics. The key difference, he said, is Ueno’s size in the Paraguayan system.
Different growth paths
Alexandre Jorge Chaia, a professor at Insper, said Ueno grew through credit cards and account openings. Master, by contrast, focused on buying assets and raising money to leverage low-liquidity holdings.
Chaia said Ueno rose from an insignificant bank to one of the country’s main lenders in three years. Master had six years of growth but never gained comparable relevance.
Brazil’s exposure
Brazilian state and municipal pension regimes invested 1.8 billion reais in securities issued by Banco Master, according to the Ministry of Social Security. The bank’s controller, Daniel Vorcaro, was arrested preventively in November 2025.
Related: Paraguay starts deposit payouts for Ueno Bank clients · Paraguay closes Ueno Bank as solvency falls below 50%
