Among regulators’ biggest concerns about cannabis banking is the prospect of credit unions having to divest these assets due to a changing regulatory landscape, says Doug Fagan, president/CEO at $521 million asset Partner Colorado Credit Union in Arvada.
“It’s the big ‘what if,’” says Fagan, who addressed the 2021 CUNA Finance Council Virtual Conference. “We don’t see this happening, but regulators are looking to protect the insurance fund. They need to make sure we’d be in a safe place from a liquidity standpoint if we have to divest.”
In this video from the conference, Fagan outlines the top liquidity-related concerns with cannabis banking.
Credit Union Magazine’s Fall 2022 issue highlights credit unions’ role in cryptocurrency, the state of digital assets, cannabis banking compliance, the human side of technology implementation, and involving the board in financial discussions.
