Update on the BCP Report to the Senate and Its Statements on the Paraguayan Financial System
Update of the report submitted by the Central Bank of Paraguay (“BCP”) to the Paraguayan Senate on October 7, 2026, and the subsequent statements made by BCP officials on October 9.
The report was submitted in response to information requests from the Senate concerning several financial institutions, including Banco Continental, Banco Itaú Paraguay, Sudameris Bank, Banco Familiar, Banco Atlas, Banco GNB, and ueno bank, as part of the Senate’s institutional oversight responsibilities.
Importantly, the BCP reaffirmed the overall soundness and normal operation of Paraguay’s financial system, confirming adequate levels of solvency and liquidity and stating that no regulatory intervention plan was underway or expected at any financial institution.
With respect to ueno bank, the information disclosed provides important clarification on three matters.
1. Related-Party Lending: Adjustment Measures Fully Implemented
The BCP identified matters requiring adjustments concerning the classification and reporting of certain companies within the bank’s related-party group and the associated lending limits.
Following the BCP’s requirements of June 5 and July 24, 2026, ueno bank fully implemented the required measures within the prescribed deadlines, including:
1. Incorporating the specified companies into its related-party group.
2. Adjusting its consolidated related-party exposure.
3. Completing the sale of certain relevant loan portfolio.
According to the BCP’s reported findings:
• The bank is in full compliance with the applicable related-party lending limits.
• The measures were completed in full and within the required deadlines.
• No sanctions or fines were imposed in connection with these measures.
• No Regularization Plan was required.
These findings confirm the bank’s timely implementation of the supervisory requirements and its full compliance with the applicable related-party lending limits.
2. Administrative Proceeding: Ongoing Review Without Final Determination
The BCP also confirmed the existence of one ongoing administrative proceeding involving ueno bank, concerning an alleged indirect financing transaction associated with a loan portfolio sale.
ueno bank firmly maintains that the transaction was conducted in accordance with applicable regulations and has submitted the relevant documentation and legal defenses supporting its position.
The proceeding remains under review within the applicable supervisory and administrative framework.
Importantly, the initiation of an administrative proceeding does not constitute a final determination of wrongdoing or the imposition of a sanction.
ueno bank will continue to exercise its legal rights and cooperate fully with the BCP until the matter is resolved.
3. Visión Banco Merger: Regulatory Authorization and Capital Commitments Reaffirmed
The BCP also addressed the regulatory framework governing the merger between ueno bank and Visión Banco, completed in June 2024.
The merger and its associated special regulatory arrangements were authorized by the BCP under the applicable legal and supervisory framework.
These arrangements, which provide for a maximum period of 20 years, cover:
1. The deferral of certain legacy non-performing loan portfolio of Vision Banco.
2. The deferral of eligible merger-related costs through an authorized merger trust structure.
3. The deferral of the net loss recorded by Visión Banco in 2023.
These special measures formed part of the regulatory framework approved for the merger.
As part of this framework, ueno bank undertook a firm and irrevocable commitment to retain and capitalize 100% of its earnings, with no dividend distributions.
This commitment reinforces the bank’s long-term capital formation strategy, ensuring that internally generated earnings are retained to strengthen its capital base and support sustainable growth.
Regulatory Standing: Key Conclusions
The BCP’s reported findings provide important clarity regarding ueno bank’s regulatory position:
• Regulatory compliance: The bank has fully implemented the required measures and is currently in compliance with the applicable related-party lending limits.
• No intervention or Regularization Plan: The bank has not been subject to regulatory intervention, and no Regularization Plan was required in connection with these matters.
• No sanctions from required measures: The completed related-party lending adjustments did not result in fines or sanctions.
• Ongoing administrative proceeding: One separate administrative proceeding concerning alleged indirect financing remains under review, without a final determination. The bank firmly maintains its position that the transaction complied with applicable regulations.
• Authorized merger framework: The Visión Banco merger and its associated special regulatory arrangements were approved under the applicable regulatory framework.
• Long-term capital commitment: The bank remains committed to retaining and capitalizing 100% of its earnings.
Our Commitment to Investors
ueno bank remains fully committed to compliance with Paraguay’s legal and regulatory framework, maintaining constructive engagement with the BCP, and upholding high standards of corporate governance, transparency, and risk management.
Our priority remains unchanged: to strengthen ueno bank’s position as a leading systemic financial institution in Paraguay, safeguard the confidence of our depositors and investors, and continue building a well-capitalized, resilient, and sustainable bank.
The report was submitted in response to information requests from the Senate concerning several financial institutions, including Banco Continental, Banco Itaú Paraguay, Sudameris Bank, Banco Familiar, Banco Atlas, Banco GNB, and ueno bank, as part of the Senate’s institutional oversight responsibilities.
Importantly, the BCP reaffirmed the overall soundness and normal operation of Paraguay’s financial system, confirming adequate levels of solvency and liquidity and stating that no regulatory intervention plan was underway or expected at any financial institution.
With respect to ueno bank, the information disclosed provides important clarification on three matters.
1. Related-Party Lending: Adjustment Measures Fully Implemented
The BCP identified matters requiring adjustments concerning the classification and reporting of certain companies within the bank’s related-party group and the associated lending limits.
Following the BCP’s requirements of June 5 and July 24, 2026, ueno bank fully implemented the required measures within the prescribed deadlines, including:
1. Incorporating the specified companies into its related-party group.
2. Adjusting its consolidated related-party exposure.
3. Completing the sale of certain relevant loan portfolio.
According to the BCP’s reported findings:
• The bank is in full compliance with the applicable related-party lending limits.
• The measures were completed in full and within the required deadlines.
• No sanctions or fines were imposed in connection with these measures.
• No Regularization Plan was required.
These findings confirm the bank’s timely implementation of the supervisory requirements and its full compliance with the applicable related-party lending limits.
2. Administrative Proceeding: Ongoing Review Without Final Determination
The BCP also confirmed the existence of one ongoing administrative proceeding involving ueno bank, concerning an alleged indirect financing transaction associated with a loan portfolio sale.
ueno bank firmly maintains that the transaction was conducted in accordance with applicable regulations and has submitted the relevant documentation and legal defenses supporting its position.
The proceeding remains under review within the applicable supervisory and administrative framework.
Importantly, the initiation of an administrative proceeding does not constitute a final determination of wrongdoing or the imposition of a sanction.
ueno bank will continue to exercise its legal rights and cooperate fully with the BCP until the matter is resolved.
3. Visión Banco Merger: Regulatory Authorization and Capital Commitments Reaffirmed
The BCP also addressed the regulatory framework governing the merger between ueno bank and Visión Banco, completed in June 2024.
The merger and its associated special regulatory arrangements were authorized by the BCP under the applicable legal and supervisory framework.
These arrangements, which provide for a maximum period of 20 years, cover:
1. The deferral of certain legacy non-performing loan portfolio of Vision Banco.
2. The deferral of eligible merger-related costs through an authorized merger trust structure.
3. The deferral of the net loss recorded by Visión Banco in 2023.
These special measures formed part of the regulatory framework approved for the merger.
As part of this framework, ueno bank undertook a firm and irrevocable commitment to retain and capitalize 100% of its earnings, with no dividend distributions.
This commitment reinforces the bank’s long-term capital formation strategy, ensuring that internally generated earnings are retained to strengthen its capital base and support sustainable growth.
Regulatory Standing: Key Conclusions
The BCP’s reported findings provide important clarity regarding ueno bank’s regulatory position:
• Regulatory compliance: The bank has fully implemented the required measures and is currently in compliance with the applicable related-party lending limits.
• No intervention or Regularization Plan: The bank has not been subject to regulatory intervention, and no Regularization Plan was required in connection with these matters.
• No sanctions from required measures: The completed related-party lending adjustments did not result in fines or sanctions.
• Ongoing administrative proceeding: One separate administrative proceeding concerning alleged indirect financing remains under review, without a final determination. The bank firmly maintains its position that the transaction complied with applicable regulations.
• Authorized merger framework: The Visión Banco merger and its associated special regulatory arrangements were approved under the applicable regulatory framework.
• Long-term capital commitment: The bank remains committed to retaining and capitalizing 100% of its earnings.
Our Commitment to Investors
ueno bank remains fully committed to compliance with Paraguay’s legal and regulatory framework, maintaining constructive engagement with the BCP, and upholding high standards of corporate governance, transparency, and risk management.
Our priority remains unchanged: to strengthen ueno bank’s position as a leading systemic financial institution in Paraguay, safeguard the confidence of our depositors and investors, and continue building a well-capitalized, resilient, and sustainable bank.