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Privatization of cantonal banks in Switzerland faces significant opposition, with recent analyses revealing that these banks benefit from state guarantees, saving around CHF 585 million annually. The federal government loses approximately CHF 190 million in tax revenue due to the special tax treatment of these banks, raising concerns about the financial risks for taxpayers. Calls for reform suggest that equal tax treatment and a reevaluation of state guarantees are necessary, yet political resistance remains strong.
Reto Schiltknecht, a former Finma member, emphasizes the need for cantonal banks to assess their risk exposure and develop crisis plans, particularly highlighting the Luzerner Kantonalbank's significant burden on the canton of Lucerne. In contrast, the Berner Kantonalbank poses a lower risk, illustrating the importance of tailored risk analysis for each bank. He advocates for proactive measures, including strengthening capital bases and preparing for potential crises, to ensure the stability of these key financial institutions.
Reto Schiltknecht, a banking expert and former Finma official, has identified Luzerner Kantonalbank as a cluster risk for the canton of Lucerne. He emphasizes the need for the bank to develop an emergency plan to mitigate potential risks.
Reto Schiltknecht, a banking expert, warns that Luzerner Kantonalbank poses a cluster risk for the canton of Lucerne and suggests the development of an emergency plan to mitigate potential issues. This highlights the need for proactive risk management in the region's banking sector.
Reto Schiltknecht
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The information provided herein is generated by experimental artificial intelligence and is for informational purposes only.
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