The initiative to restructure BLKB's operations, led by Peter Riebli of the Swiss People's Party (SVP), is gaining momentum. The goal of the initiative is to refocus the bank on its core business of providing loans and mortgages to private households and SMEs.
One controversial aspect of the initiative is the proposed cap on executive board salaries, limiting them to twice the salary of a member of the Basel government. The initiative also seeks to enhance political oversight of the bank's governance by giving the cantonal parliament veto power over government nominations for the bank's governing body.
The implications of the initiative could be significant for BLKB's profitability and operational scope. Shifting towards a more regionally focused banking model may impact the bank's financial performance. However, BLKB maintains that confidence in the institution remains intact, as external surveys have recognized it as the best bank for private customers in north-western Switzerland. BLKB is also in the process of merging its subsidiary Radicant with Numarics AG to strengthen its digital offerings.
Initial political reactions to the initiative have been critical, with concerns about the bank's operational independence and ability to innovate. While some acknowledge excessive executive salaries, caution is urged against stifling progressive initiatives that could position BLKB as a leader in sustainable banking practices.
The outcome of this initiative will determine the future of BLKB and may set a precedent for how cantonal banks operate in Switzerland going forward.