The owner strategy serves the government as a management tool for controlling the cantonal majority stake in St. Galler Kantonalbank (SGKB), according to a statement issued by the bank on Wednesday. It sets out the bank's overarching strategy and basic orientation.

Participation in SNB Liquidity Instruments

The adjustments are moderate and the previous objectives have been reaffirmed. As a new element, it is now planned that SGKB will participate in the instruments provided by the Swiss National Bank to ensure liquidity.

The sustainability goals remain unchanged. Additionally, the ownership strategy now includes the principles of non-discrimination and the promotion of diversity.

The strategy sets out the key strategic, economic, corporate, social and societal objectives and provides guidelines for management and reporting. It takes into account the interests of the canton. St. Gallen, which holds a majority stake of 51 percent in the Kantonalbank.

Government's View

It is emphasized that SGKB is well-positioned overall. It is profit-oriented, assumes its economic responsibility in its home market, and is sufficiently capitalized. Its strategy takes into account the interests of the canton. In the government's view, the scope of its business activities is therefore still appropriately defined.

The definition of target markets will not be changed. According to the strategy, SGKB will continue to operate «mainly in its home market» (cantons of St. Gallen and Appenzell Ausserrhoden). However, it is also active in the rest of German-speaking Switzerland and in neighboring countries, particularly Germany. Foreign commitments are to be limited to low-risk business activities, and the operation of an investment banking business is excluded.

Fundamental Importance

The current ownership strategy was issued by the government in 2016. Its content was reaffirmed at the end of 2019 and has now been supplemented in certain areas. The government is thus reiterating the fundamental importance of the bank as part of the canton's shareholdings, the statement continues.