Based on a report and various expert opinions, the Government Council of the Canton of Bern does not want to reduce its stake in Berner Kantonalbank (BEKB) or sell it completely.

Parliament requested a review of the shareholding in the fall of 2023, considering various options. The Grand Council will debate the cantonal participation in June.

The report that has now been submitted presents the advantages and disadvantages of the three options. It examines the scenarios «Status quo» (continuation of the cantonal majority stake), «minority stake with blocking minority» (reduction to one third plus one share) and «renunciation of a cantonal stake» (complete sale).

Disadvantageous for the Financial Budget

Under the given conditions and framework conditions, the Government Council is in favor of the «Status quo» option. A reduction, as wll as a complete sale of the cantonal participation would have a negative impact on the Bernese financial budget, it continues.

In addition, BEKB has developed successfully. It remains to be seen to what extent a change in ownership could jeopardize BEKB's solid and low-risk orientation and the sustainable development it is striving for.

Significant Political Hurdles

Significant political hurdles would also neet to be overcome. According to a legal opinion, a connstitutional amendment would be required to reduce the cantonal shareholding to below 50 percent. Such an amentment would have to be put to a popular vote.

The canton and BEKB have done their homework, according to the press release. As a result of the reforms following the canton's rescue operation in the wake of the real estate crisis in the 1990s, BEKB can now be described as «the most institutionally independent of all cantonal banks». It would be one of only three cantonal banks that does not have a state guarantee. It is also organized as a public limited company under private law without state representation in the strategic management body.

There is a clear separation of political and entrepreneurial responsibilities. In the opinion of the cantonal government, there is no reason or pressure to further unbundle the relationship between the canton and BEKB from a pure governance perspective.