MBank, Oregon’s sole bank offering financial services to businesses in the marijuana sector, has announced that it will close its 75 weed-related accounts over the next two months.
CEO and President Jef Baker explained the Gresham-based bank’s move: “It just ultimately boils down that as a small community bank, we do not have the resources to manage the compliance needed for this industry. We thought we could, but we can’t.”
Baker said that MBank is simply “not big enough” to handle federal regulations imposed on banks dealing with businesses in the cannabis industry.
According to Baker, the move could prove harmful to the industry in general, deterring other banks from opening their doors to marijuana firms: “My personal opinion is that it will have a negative effect on other banks’ appetites. Anytime one of us exits a business it’s a red flag of sorts. I don’t think this is going to be a positive.”
Sources:
http://www.wweek.com/portland/blog-33062-mbank_is_closing_its_marijuana_bank_accounts.html
http://mjbizdaily.com/breaking-mbank-to-close-all-cannabis-accounts/?nomobile=1
Photo Credit: Tracy O
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