Kantonalbanks

Kantonalbanks are a unique type of bank found in Switzerland. They are state-owned banks that operate at the cantonal level, meaning each canton has its own distinct Kantonalbank. These banks were established to provide banking services to the local population and businesses within their respective cantons and often have a mandate to support regional economic development.

A key characteristic of Kantonalbanks is their close relationship with the canton in which they are based. The canton typically holds a majority of the voting rights and often guarantees the bank's liabilities. This state backing can provide a sense of security to customers. While they operate commercially, their public mandate influences their business practices, often leading them to offer a wider range of services to local communities, including small and medium-sized enterprises.

Each Kantonalbank is legally and organizationally independent, though they often collaborate on certain initiatives and adhere to common standards. They compete with other Swiss banks but benefit from their local presence and strong ties to the cantonal government. Their governance structure usually involves a board of directors appointed by the canton. Over time, many Kantonalbanks have modernized their operations and expanded their reach, but their core identity remains rooted in serving their specific canton.