The bank said in a statement that it has decided to take part in the US program in “Category 2” to settle the tax dispute between Swiss banks and the US.

“The financial stability of the company will not be affected by this decision,” a statement from the bank said.

A number of firms, such as Banque Cantonale Vaudoise and Vontobel have decided to take part in the US-Swiss agreement over tax, choosing to do so as a “category 2” bank where there is some risk that US authorities might find examples of tax evasion by American clients. Swiss banks are deciding how they will sign up to the pact, agreed in August 2013 and designed to resolve a long-running dispute about tax evasion between Switzerland and the US. There are a number of different categories that firms can state they fall into, depending on whether they think they have violated laws about helping US tax evaders, or not.

“After thorough internal discussions, VP Bank Ltd. has decided to participate in the US program in Category 2. This decision does not rule out the possibility of switching to Category 3 at a later date. VP Bank Ltd. focuses mainly on the Swiss and Eastern Europe markets and has neither been active in the USA nor systematically acquired US clients,” the bank said in a statement.

“By taking this decision, the bank is seeking a swift, sustainable and quantifiable solution based on a high level of risk assessment and legal certainty. Despite the expense involved in participating in the US program, VP Bank Group expects to record solid annual results for 2013,” it added.