A non-partisan committee has launched a legislative initiative titled "BLKB - the bank for the Basel area," aimed at refocusing the Basellandschaftliche Kantonalbank (BLKB) on its core business in the Basel region.
The initiative is in response to concerns over the bank's current business strategy, particularly regarding its subsidiary, Radicant. The committee argues that the bank has strayed from its primary mission of serving the local community. The committee's criticisms include the bank's investments in Radicant, which have resulted in losses, and a perceived decline in profitability compared to other cantonal banks. The committee also accuses BLKB of adopting excessively progressive stances on social and sustainability issues.
To address these concerns, the initiative seeks amendments to the Cantonal Banks Act, redefining BLKB's purpose as a regional bank. The proposed changes include increased oversight from the cantonal parliament and a right of veto over candidates for the Bank Council.
BLKB has responded to the initiative by indicating that it will assess the potential implications of the proposed changes. The bank cautions that a shift in focus towards the Basel region could lead to a decline in business volume, which would adversely affect the bank's size and profitability. Despite the criticisms, BLKB maintains that it has not experienced a loss of trust among the regional population. A recent survey indicated that BLKB was recognized as the best bank for private customers in Northwestern Switzerland.
The ongoing discussions within the cantonal council and the responses from BLKB will be pivotal in shaping the bank's trajectory in the coming months.