Grass is Greener: Local banks, credit unions weigh potential banking with cannabis retailers
It wasn’t so long ago that growing, buying, selling and using marijuana could land you a lengthy prison sentence.
But Michigan voters decided that wasn’t cool and passed initiatives legalizing medical and adult-use recreational marijuana, one of 44 states that allow some type of cannabis use.
Recreational marijuana has become a billion-dollar industry in the state and could generate $3 billion in annual sales when it becomes widely available, according to a study last year by Michigan State University.
But banks and credit unions – seen as crucial to fostering the growth and safety of this industry – have been left out of the party.
While state law allows the production and sale of marijuana and marijuana-based products, such activity is illegal under federal law. Financial institutions risk losing their charters if they take deposits from or loan money to marijuana businesses.
Boeve
“We can’t touch it now,” said David Boeve, senior vice president and commercial loan group manager at Independent Bank in Traverse City. “I think the banking industry is interested in it in general because banks love deposits.”
Boeve said Independent Bank “has done a lot of research,” but hasn’t yet taken a position on whether it would bank marijuana businesses should it become legal to do so.
Attempts by the banking and credit union industries to get federal…
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Grass is Greener: Local banks, credit unions weigh potential banking with cannabis retailers
It wasn’t so long ago that growing, buying, selling and using marijuana could land you a lengthy prison sentence.
But Michigan voters decided that wasn’t cool and passed initiatives legalizing medical and adult-use recreational marijuana, one of 44 states that allow some type of cannabis use.
Recreational marijuana has become a billion-dollar industry in the state and could generate $3 billion in annual sales when it becomes widely available, according to a study last year by Michigan State University.
But banks and credit unions – seen as crucial to fostering the growth and safety of this industry – have been left out of the party.
While state law allows the production and sale of marijuana and marijuana-based products, such activity is illegal under federal law. Financial institutions risk losing their charters if they take deposits from or loan money to marijuana businesses.
Boeve
“We can’t touch it now,” said David Boeve, senior vice president and commercial loan group manager at Independent Bank in Traverse City. “I think the banking industry is interested in it in general because banks love deposits.”
Boeve said Independent Bank “has done a lot of research,” but hasn’t yet taken a position on whether it would bank marijuana businesses should it become legal to do so.
Attempts by the banking and credit union industries to get federal…
