Why is Paraguay facing a banking and political crisis?

Santiago Peña, the President of Paraguay, resigned and was subsequently impeached after Ueno Bank, a digital bank used by roughly half of Paraguay's adult population, collapsed. The shutdown left customers unable to access their savings, sparking widespread protests and political turmoil. The collapse began when Ueno’s services stopped working in the early hours of November 3rd, affecting nearly three million people. In response, Paraguayan lawmakers moved forward with impeachment proceedings immediately following Peña's resignation. The bank's failure was exacerbated by internal reports leaked to local media outlets revealing excessive lending practices and potential insider dealings, leading to public distrust and political pressure on the government.