Mar. 27--WINDOW ROCK, Ariz.--The Navajo Nation Bank Summit plunged into rugged terrain, tackling tough issues of limited waivers of sovereignty and federal and state regulatory control, while offering a fresh vision of Indian banks as a means of reversing Indian economies.
The Banking Summit 2000 explored banking options offered by the Internet, micro-banking, retail, commercial, savings and loan, and thrifts.
Eloise Cobell, chairwoman of the board of directors of Blackfeet National Bank, described the difficulties and triumphs in establishing the first Indian bank in Indian country.
"We came to terms with the fact that if we want to have a bank, we will have to do it ourselves," Cobell said in the keynote banquet address.
Establishing the bank was possible because of education programs from elementary schools to community colleges that led the Blackfeet people to be bankable, she said. Ultimately, the bank and its education component led to the establishment of 200 businesses.
"We can achieve what we want to achieve, if we put our hearts to it," said Cobell, lead plaintiff in the ongoing federal lawsuit alleging misuse of trust funds by the Interior.
John "Rocky" Barrett said there are six tribally owned banks, owned by nine tribes. He is chairman of the board of the First National Bank of Shawnee, with $60 million in assets.
Barrett, chairman of the Citizen Potawatomi Nation in Shawnee, Okla., said his tribe doubled its returns on investments since withdrawing trust fund dollars from the "inept Bureau of Indian Affairs" that invested their dollars in failing enterprises.
"The Navajo Nation is the mightiest of all the tribes in the United States,"Barrett said, urging establishment of a Navajo bank.
Barrett said Internet banking is growing for his tribe, and encouraged Navajos to consider it.
Navajo President Kelsey Begaye said it is time for his Nation to step forward. "We need to begin to dream and dream big and take risks. It is time for us to really look at the issue of spending money to make money."
Noting that bordertown businesses receive a flood of Navajo dollars and offer enticements for loans with high finance rates, he said, "We need to turn this around and make our money work here for us."
Begaye said the Navajo Nation is preparing to introduce amendments in Congress to speed up the ability of Navajos to obtain business site leases.
"I've learned in my life that a lot of things are possible. I learned that a sheepherder from Kaibeto can become president of the Navajo Nation."
The summit opened with a clash of opinions over the role of sovereignty and federal and state regulatory agencies in the creation of Indian banks.
Thomas Cargill, professor of economics at the University of Nevada-Reno, stirred controversy reminding participants, "There is no way in the world that the feds or the states will allow you to use your sovereignty to avoid or go around the regulatory agency. "You may be able to tweak it a little, but I doubt it."
Cargill stressed the need for Federal Deposit Insurance Corp. insurance, the need to start small, and said economies on tribal lands pose an obstacle.
"You don't have the economy base that is going to attract financial institutions. You don't have the money."
Cargill said banking worldwide is competitive and swiftly changing, producing a climate in which failure is possible. "It is going to take quite a lot of work to develop and make it profitable."
From the audience, Percy Deal of Hardrock Chapter, said, "The economy of the Navajo Nation cannot support a bank," agreeing that public confidence is a major concern.
"We are a nation that lives by hard cash. There's more money in people's pockets than there is in the banks," Deal said. "I'm afraid a bank will eat up the people's money."
Ed T. Begay, speaker of the Navajo Nation Council, supported creation of a bank. But, he said the Nation's credit services department told the council that outstanding personal and home loans have a high level of delinquent payments. Begay was concerned collections are weak with millions in outstanding loans.
"We need to ensure that if and when the Navajo bank is established that it performs like a bank, and not as a grant-making institution."
Tony Skrelunas, executive director of Navajo Division of Economic Development, said Indian tribal sovereignty is a constant concern for non-Indians pursuing businesses in Indian country. Of primary concern to the non-Indian business world is the trust status of the tribal lands and the risk of loss of investments.
Businessmen are concerned over whether tribal or federal courts will have jurisdiction to rule in disputes and how foreclosures will be processed and lead to a return of investments, he said.
Skrelunas said business issues, including sovereign immunity, have been discussed with Assistant Secretary of Interior Kevin Gover. "He is committed to supporting us."
The Navajo economic development division plans to submit a plan to the Navajo Nation Council to invest in the Native American National Bank being organized. The bank, to be based in Denver and offer loans to tribes and corporations, has two-thirds of its initial goal of $30 million in investments.
"We can't do it all. We have to start somewhere," Skrelunas said. Cargill, however, discouraged the wholesale banking route. He said Indian economies need the flow of local bank cash from personal and retail loans to circulate money in the local economy. He recommended a retail bank that offers thrift, savings and money managing opportunities for local people.
"Wholesale banking is just supporting other banks."
Cargill said it is unrealistic to expect to avoid the role of a state regulatory agency in the approval of a new bank.
John H. Beirise, CEO of the Native American National Bank, disagreed. "Once the Comptroller of Currency grants a charter, the states don't object."
The issues of sovereignty and the Navajo Budget and Finance Committee's proposal to offer limited waivers of sovereign immunity in business contracts, disturbed Navajos attending the summit.
After the session, Loretta Miller of Crownpoint, N.M., said, "The federal government is always going to have their hands on us." While encouraging the establishment of a Navajo bank, Miller questioned if the federal government would retreat from treaty responsibilities if Navajos become truly self-sufficient and economically viable.
Marley Shebala, a Navajo-Zuni Pueblo news reporter in the audience, was more direct. She challenged Cargill during the session saying, "You are assuming sovereignty is a problem."
To see more of Indian Country Today, or to subscribe to the newspaper, go to http://www.indiancountry.com
(c) 2000, Indian Country Today, Rapid City, S.D. Distributed by Knight Ridder/Tribune Business News.
No comments:
Post a Comment