Legalization of marijuana in California has helped some financial institutions in the state increase their assets at the same time many banks, feeling stifled by federal regulations, deny services to licensed growers, manufacturers and retailers, a new study shows.
Combining data on bank holdings and interviews with growers and bankers, the research paints an initial picture of how the marijuana and financial industries coexist in California now, and suggests that regulatory changes could create new opportunities for both.
The data analysis did make one thing clear: Legalization of the estimated $16 billion marijuana industry in California has been a boon to financial institutions. But restricted access to banking, from checking accounts to loans, perpetuates inequities for those participating in the legal production of cannabis—while unlicensed, illegal growing and exporting continues as an enormous cash-based sector of the industry.
“We need a better understanding of the economics of this industry and all of the questions and implications related to it so the impacts of policy choices are…
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Legalization of marijuana in California has helped some financial institutions in the state increase their assets at the same time many banks, feeling stifled by federal regulations, deny services to licensed growers, manufacturers and retailers, a new study shows.
Combining data on bank holdings and interviews with growers and bankers, the research paints an initial picture of how the marijuana and financial industries coexist in California now, and suggests that regulatory changes could create new opportunities for both.
The data analysis did make one thing clear: Legalization of the estimated $16 billion marijuana industry in California has been a boon to financial institutions. But restricted access to banking, from checking accounts to loans, perpetuates inequities for those participating in the legal production of cannabis—while unlicensed, illegal growing and exporting continues as an enormous cash-based sector of the industry.
“We need a better understanding of the economics of this industry and all of the questions and implications related to it so the impacts of policy choices are…
