Union Bank AG decides on voluntary liquidation

Vaduz August 10, 2020 – At the General Meeting of August 7, 2020, the shareholders of Union Bank AG resolved to voluntarily liquidate the bank. Key figures of the bank are indeed above average; for example, the core capital ratio is 39%(1) and the liquidity coverage ratio is over 2,000%(2), which is twenty times the legal minimum. However, the capital adequacy requirements of the European Capital Adequacy Ordinance (CRR), which has been directly applicable in Liechtenstein since 1 January 2020, could not be met. The reason for the non-attainment of the capital adequacy requirements was that no shareholder acceptable to the FMA could be found who would have contributed the necessary funds. In recent months, the Board of Directors has intensively reviewed various options that would have permitted the continuation of operational banking activities under a new anchor shareholder and with a significantly higher capital base. It was not possible to renew the group of shareholders, although intensive negotiations were held with interested parties, some of which have also gone through the regulatory approval process. The Board of Directors regrets this development, especially since it was committed to the continued existence of the bank on a renewed foundation right up to the end.

Customer deposits are secured

With the voluntary liquidation, Union Bank AG will give up its banking license in the coming days. A liquidator will be appointed to wind up the bank, which is likely to take a long time. The Board of Directors stresses that all client funds are secured within the framework of the applicable liquidity regulations. As explained, the Bank’s liquidity coverage ratio is over 2,000%(2).

The Board of Directors would like to thank shareholders and clients alike for the trust they have placed in the Bank. “Our special thanks go to the employees of Union Bank AG, who have worked with us to the very end and always in the interests of our clients and shareholders – they all deserve our utmost respect,” the Board of Directors is quoted as saying.

(1) per 05.08.2020 (unaudited)

(2) per 05.08.2020 (unaudited)