Native American tribes move forward on bank plans

Northwestern Financial Review, Aug 1-Aug 14, 2003 by Dullum, Justin

The Confederated Salish and Kootenai Tribes have retained Mark Olsson to help make plans for a de novo bank a reality. Olsson, a former executive at Ronan State Bank, Ronan, Mont., currently leads his own finance and management consulting firm, Olsson Consulting, Inc. The tribes plan to open the bank early in 2004 with Olsson as president.

"It's a fairly rare event to have a tribe go ahead and put a bank together," Olsson said. According to the FDIC, said Olsson, there are only 17 banks in the country that have 51 percent or more ownership by Native Americans and only four bank holding companies under Native American ownership, three of which are owned by tribes.

Olsson said tribal ownership makes no difference in terms of regulation. "Tribes are considered sovereign nations," Olsson said. "But when you go and apply for a bank charter, the tribe agrees to a limited waiver of tribal sovereign immunity. In this case, the tribes have elected to pursue a federal charter, and big brother is there just as with any charter."

While an exact location has yet to be determined, the Salish and Kootenai National Bank will serve the Flathead Reservation. The Salish and Kootenai tribes will be the bank's sole owners. Their confederation will supply a minimum of $3 million in capital.

The bank will be a full-service facility offering checking accounts, savings accounts, home, commercial, auto, farm and education loans, a drive-up window and other amenities.

Olsson's banking career began in 1974. In 1983 he joined Ronan State Bank, where he became senior vice president and managed a $40 million loan portfolio. The bank grew to $90 million from $35 million during his employment.