News Summary
- Paraguay’s central bank has initiated resolution proceedings against Ueno Bank, after discovering its solvency ratio had fallen below half the regulatory minimum.
- Ueno Bank has sponsored Formula 2 driver Joshua Dürksen since 2023, maintaining a prominent commercial relationship with the Paraguayan throughout his international racing career.
- The impact on Dürksen’s sponsorship remains unknown, while the banking crisis has triggered investigations, arrests and the resignation of Paraguay’s central bank president.
Paraguay’s central bank has taken control of Ueno Bank, one of the country’s largest financial institutions and a major sponsor of Formula 2 driver Joshua Dürksen, after identifying serious problems with its financial position. The decision, adopted on Monday (November 2) and announced the following day, has placed the lender under a formal resolution process, raising uncertainty about its commercial commitments to Paraguayan motorsport.
Ueno Bank has supported Dürksen since his move into Formula 2, becoming one of the most visible companies associated with the country’s leading international racing driver. However, there has been no announcement that the sponsorship agreement has been terminated or that the financial crisis will affect his racing programme.
Why did Paraguay’s central bank intervene at Ueno Bank?
The Central Bank of Paraguay (BCP) announced that Ueno Bank’s solvency ratio had fallen below 50% of the minimum required by financial regulations.
The deterioration followed adjustments to the bank’s financial statements during a regulatory review.
According to Paraguayan newspaper ABC Color, the lender’s solvency ratio had fallen to 5.56%, substantially below the legal requirement.
The investigation identified weaknesses in credit risk management, including large loans granted to borrowers whose financial capacity did not adequately support the amounts involved.
Regulators also examined financial relationships involving companies connected to the bank’s controlling shareholders.
The BCP initiated a resolution procedure under Paraguay’s banking legislation, appointing officials to assess the institution’s assets and liabilities while seeking to protect depositors.
The bank serves approximately three million customers and administers around US$850 million in public funds, according to Reuters.
The central bank stressed that the problems were specific to Ueno Bank and did not indicate a wider crisis affecting Paraguay’s financial system.
Ueno Bank has supported Dürksen’s Formula 2 career since 2023
The connection between Ueno Bank and Dürksen began in December 2023, when the financial institution announced a sponsorship agreement ahead of the Paraguayan’s first Formula 2 season.
The partnership was presented as an opportunity to support the country’s emergence in international motorsport.
Dürksen subsequently became one of the bank’s sporting ambassadors, participating in promotional campaigns and public events.
In January 2026, he attended a promotional event organised by Ueno Bank in San Bernardino, meeting supporters and discussing his career.
The financial institution also celebrated his victory in the Formula 2 sprint race at Monza in September.
In a statement published on its official website, Ueno Bank highlighted the international visibility generated by Dürksen’s success and reaffirmed its commitment to supporting Paraguayan athletes.
The relationship has therefore extended beyond a conventional logo placement, forming part of the bank’s broader sports marketing strategy.
The financial value, payment schedule and duration of Dürksen’s current sponsorship agreement have not been publicly disclosed.
Banking crisis triggers arrests and political fallout
The intervention has caused significant repercussions in Paraguay.
The country’s prosecutor’s office opened a criminal investigation into suspected irregularities involving the bank, while authorities ordered the arrest of eight people linked to the institution.
A court also authorised preventive asset freezes involving executives and shareholder companies, covering more than US$70 million and ₲1.6 trillion.
The measures are intended to preserve assets that could be used to protect depositors during the resolution process.
The case has also affected Paraguay’s political leadership.
Central bank president Carlos Carvallo submitted his resignation at the request of President Santiago Peña.
Carvallo previously led Ueno Bank until 2023, while Peña had maintained business ties with its controlling group until 2025.
Those connections have attracted scrutiny over the supervision of the institution.
However, the existence of investigations and previous business relationships does not establish criminal responsibility.
Paraguayan authorities have said the resolution process will prioritise depositors and the stability of the financial system.
Could Ueno Bank’s crisis affect Dürksen’s racing future?
The banking intervention creates uncertainty surrounding Ueno Bank’s ability to maintain commercial agreements, including sponsorship commitments.
Under the resolution procedure, appointed officials will assess the institution’s financial position and determine how its obligations can be managed.
That process could eventually affect marketing expenditure, sponsorship payments and other commercial activities.
However, there is currently no public evidence that Dürksen has lost financial backing or that payments under his agreement have been suspended.
The Paraguayan is competing for Invicta Racing in the 2026 Formula 2 Championship, having joined the team after two seasons with AIX Racing.
He is also part of Mercedes’ Formula 1 development programme.
His participation in the remaining Formula 2 rounds has not been publicly linked to the Ueno Bank crisis.
Any assessment of the potential consequences for his career would therefore require confirmation from the driver, his representatives or the companies involved.
Ueno Bank’s sports sponsorships face uncertain future
Ueno Bank’s commercial involvement in sport extends beyond Dürksen.
The institution has supported football clubs, international motorsport events and other Paraguayan athletes as part of an extensive sponsorship strategy.
Its portfolio has included naming-rights agreements connected to major football venues and the World Rally Championship event in Paraguay.
The financial crisis is already prompting questions about those partnerships.
According to local reporting, the Paraguayan Football Association has begun reviewing its commercial relationship with the bank, while removing some Ueno branding from its social media material.
The association has not announced the termination of all its agreements.
For motorsport, the central question is whether the resolution process will allow the bank’s existing commitments to continue or require changes to its sponsorship portfolio.
Dürksen’s relationship with Ueno Bank remains publicly documented, but its future financial arrangements have not been clarified.
GRANDE PRÊMIO is following the developments affecting Joshua Dürksen and the 2026 Formula 2 Championship, with breaking news and full coverage in its Formula 2 section.
