The annual compensation for the state guarantee provided to Basler Kantonalbank (BKB) for the years 2025 to 2028 has been confirmed by the Government Council of the Canton of Basel-Stadt.
The amount is CHF 15.2 million, which is CHF 5.0 million higher than the previous period of 2021 to 2024. This increase is due to the growth in BKB's total assets.
The state guarantee allows the Canton of Basel-Stadt to assume liability for BKB's debts in the event of bankruptcy, which enables the bank to secure financing more favorably in the capital market. The compensation amount is determined through a "cost advantage model" that considers the risks to the canton and the competitive advantages gained by BKB through the guarantee.
This arrangement highlights the ongoing relationship between the bank and the canton, emphasizing the financial implications of the state guarantee on BKB's operations and its impact on the local economy.