Monday, June 10, 2019

CBO: SAFE Banking Act Will Increase Insured Deposits at Banks and CUs

The SAFE Banking Act (H.R. 1595) would change federal policies governing services currently offered by banks and credit unions to cannabis-related businesses.

The bill would prevent the Federal Deposit Insurance Corporation (FDIC) and the National Credit Union Administration (NCUA) from taking action against banks or credit unions that serve cannabis-related businesses.

In addition, the bill would prevent those regulators from limiting access to financial institutions by cannabis-related businesses.

At the end of 2018, there were 438 banks and 113 credit unions offering services to cannabis-related businesses.

The Congressional Budget Office (CBO) believes the bill will result in additional deposits at banks and credit unions. CBO estimates that beginning in 2022 insured deposits at banks and credit unions will increase by about $1.2 billion and $200 million, respectively. By 2029, insured deposits will increase to $2.1 billion and $350 million at banks and credit unions, respectively.

However, CBO cautions that the lack of data on deposits from cannabis-related businesses at financial institutions means its estimates new deposits could be greater or smaller than predicted.

Read the report.
Posted by at
Labels: , ,

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)
 

The content is provided for educational purposes only, with the understanding that neither the authors, contributors, nor the publishers of this site are engaged in rendering legal, accounting or other expert or professional services. If legal or other expert assistance is required, the services of a competent professional should be sought.

Comments appearing in response to articles appearing on this site do not necessarily reflect the views of the ABA. ABA makes no representations regarding the truth or accuracy of commentary or opinions that may be posted in response to the articles that appear on this website.

The inclusion herein of any link to a website, either in the text of an article or in a comment, does not denote any approval, sponsorship, or endorsement by the ABA, and ABA is not responsible for the content or opinions expressed on those linked websites or related commentary. This content is not licensed to third parties sites and is not affiliated with any third party site. Any reference to the author or this content on any third party site on the Internet is not authorized by the ABA.

It is the policy of the American Bankers Association to comply fully with all antitrust laws. Certain discussions should be considered off-limits, including those that contain competitively sensitive data such as price and cost information, or statements that could be construed as reflecting an attempt or desire to control or influence a particular market or markets. Future pricing or other prospective competitive information should never be shared.