Cantonal Banks

Last updated 21 August 2016

Cantonal Banks are universal canton-owned banks, specializing in retail and corporate banking products for the residents of their canton. Liabilities of the majority of the Cantonal Banks are guaranteed by the owning canton. Cantonal Banks account about 30% of Swiss banking sector: consolidated total assets of all the Cantonal Banks are comparable with those of "Big Banks": UBS and Credit Suisse.

Total Assets of Cantonal Banks vs Big banks

Ownership Structure

Cantonal banks are either 100% or majority-owned by the cantons. The banks can differ from each other in terms of their legal and organizational structures, their size and their business policies. Each canton, as owner, decides on its Cantonal Bank’s legal and organizational form, ownership structure, roles and fields of business to suit the canton’s specific objectives.

Business Focus

Most cantonal banks are universal banks operating in all fields of business, although they are particularly strong in savings and mortgage products. In 2015, mortgages account more than 60% of the Cantonal Banks total assets, while customer savings and investments - about 40% of their total liabilities.

Mortgages in Total Assets of Cantonal Banks
Customer Savings in Total Liabilities of Cantonal Banks

In a few cases, asset management for domestic customers also plays an important role.

Area Served

The individual Cantonal Banks operate primarily in the market of their home canton, where many of them are the market leaders. Some of the banks have branches outside their canton or offices even outside the country. The policies of serving foreign customers differ from bank to bank.

Every Cantonal Bank also has national presence through its membership in the Cantonal Banks Group. For example, with around 1,250 ATM, the Cantonal Banks have an extensive network of ATMs in Switzerland. Customers can withdraw cash in Swiss francs free of charge throughout Switzerland at the ATMs of any Cantonal Bank. There is a similar agreement covering over-the-counter business: for a small fee customers can pay in or withdraw cash throughout Switzerland at any Cantonal Bank.

State Guarantee

For the most Cantonal Banks, the respective canton is liable for the bank’s liabilities. The canton determines whether it wishes to be liable for the liabilities of its Cantonal Bank and defines the amount of the guarantee.

21 out of 24 Cantonal Banks have full state guarantee. Berner Kantonalbank and Banque Cantonale Vaudoise have none state guarantee, while Banque Cantonale de Genève has limited guarantee from the canton.

List of Cantonal Banks

The list of the Cantonal Banks with key financial data for 2015 and state guarantee is shown below.

NameTotal Assets (mln CHF)Annual Profit (mln CHF)Number of EmployeesState Guarantee
 Aargauische Kantonalbank24283 155 690full
 Appenzeller Kantonalbank2925 12 76full
 Banca dello Stato del Cantone Ticino11412 43 427full
 Banque Cantonale de Fribourg20623 123 380full
 Banque Cantonale de Genève19939 78 718limited
 Banque Cantonale du Jura SA2851 9 116full
 Banque Cantonale du Valais13952 57 460full
 Banque cantonale neuchâteloise10305 35 265full
 Banque Cantonale Vaudoise42563 336 1947none
 Basellandschaftliche Kantonalbank23186 130 644full
 Basler Kantonalbank22592 126 1284full
 Berner Kantonalbank AG28035 131 1091none
 Glarner Kantonalbank4989 20 167full
 Graubündner Kantonalbank23091 168 792full
 Luzerner Kantonalbank AG33271 180 943full
 Nidwaldner Kantonalbank4281 16 139full
 Obwaldner Kantonalbank4274 15 149full
 Schaffhauser Kantonalbank6638 50 282full
 Schwyzer Kantonalbank16194 74 490full
 St.Galler Kantonalbank AG31151 133 1059full
 Thurgauer Kantonalbank20868 122 686full
 Urner Kantonalbank2854 17 99full
 Zuger Kantonalbank14313 61 402full
 Zürcher Kantonalbank152851 722 5179full

External Links

  1. Cantonal Banks Group