The Government Council of Basel-Stadt has approved the state guarantee settlement for Basler Kantonalbank (BKB) for the years 2025 to 2028.

This settlement amounts to CHF 15.2 million annually, which is an increase of CHF 5.0 million per year compared to the previous period of 2021 to 2024.

The increase is attributed to the growth in BKB's total assets.

The canton is responsible for BKB's liabilities under the existing legal framework, meaning it would cover outstanding debts if the bank were to go bankrupt.

The state guarantee allows BKB to obtain more favorable financing conditions in the capital market, avoiding any distortions in competition.

The annual compensation is intended to ensure the stability and reliability of the bank's operations within the financial landscape.