The Canton of Basel-Stadt has recently announced an increase in the annual compensation payment that Basler Kantonalbank (BKB) is required to make for the state guarantee.

Starting in 2025, the new compensation amount will be 15.2 million francs per year for the period from 2025 to 2028, which is higher than the previous amount of 10.2 million francs.

This adjustment is a result of the significant growth in BKB's balance sheet, reflecting the increased liabilities of the bank.

The purpose of this compensation is to mitigate the financial risk faced by the canton in the event of the bank's potential bankruptcy, as well as to address BKB's cost advantages in financing and prevent any distortions in competition.

The compensation amount is determined using a "cost advantage model" to ensure a fair assessment of the financial landscape.