The Basellandschaftliche Kantonalbank (BLKB) is currently facing a challenging situation as a new initiative seeks to change its operational focus.
The initiative, titled "BLKB - the bank for the Basel region," aims to amend the Cantonal Banks Act and shift the bank towards a more regionally focused service structure. This change is being driven by a committee that includes prominent political figures who are concerned about the bank's involvement in "risky projects," particularly its subsidiary, Radicant.
The proposed changes emphasize the need for BLKB to prioritize the financial needs of local businesses and households. The initiative outlines specific amendments, including a requirement for the bank to provide services typical of a regional bank and a mandate for the bank to pay a certain amount of compensation to the canton for the state guarantee. These changes are intended to ensure that the bank remains accountable to the local community.
The initiative also proposes reforms regarding executive compensation, including capping the gross salary of a member of the Executive Board and eliminating severance pay for BLKB managers. It also aims to increase the cantonal council's influence over the bank's operations.
BLKB has expressed concerns about the potential impact of these changes on its business volume and profitability. Despite the uncertainty, the bank's shares have shown resilience in the market.
The initiative is backed by a coalition of political figures and reflects a broader political sentiment advocating for a banking model that is more attuned to the needs of the Basel region. The outcome of this initiative could set a precedent for how regional banks balance their business strategies with community expectations and regulatory requirements.