The compensation payment from Basler Kantonalbank (BKB) to the Basel government will be increased from 2025 to 2028.

The government has reassessed the compensation structure to cover the canton's liability for the bank's debts in case of bankruptcy. This adjustment reflects a decision to increase the annual payment from BKB to CHF 15.2 million, which is CHF 5 million more than the previous four-year period.

This increase in compensation serves two purposes. Firstly, it aims to mitigate the risk to the canton and ensure financial stability in the region. Secondly, it considers the bank's competitive cost advantage to prevent market distortions. This decision highlights the ongoing relationship between the Basel government and BKB, emphasizing the importance of state guarantees in maintaining financial stability.