The Government Council of the Canton of Basel City has  decided to increase the compensation for the state gurarantee. The reason for this is the significantly larger balance sheet of Basler Kantonalbank (BKB), according to a statement on Wednesday.

The government council of the canton of Basel-Stadt has now decided that BKB must pay 15.2 million francs annually for the years 2025 to 2028. Most recently, the compensation amounted to 10.2 million.

Avoiding Unfair Compeititon

The canton’s liability for the bank’s obligations means that, in the event of bankruptcy, it would cover the outstanding debts. The compensation aims to reduce the canton’s risk while also considering BKB's financing cost advantage, ensuring that competition is not distorted.

The amount of the compensation is calculated on the basis of the «cost advantage model».