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 2023 issue examines how artificial intelligence is shaping marketing, strategies to improve cyber hygiene and overall cybersecurity, the need to employ risk management to address inflation and its impacts, new approaches to board recruiting, and NCUA’s top supervisory priorities.
