I am not discouraging any excitement about establishing a bank, I merely want to point out that we all need to be realistic in understanding what circumstances currently exist in regards to the banking needs of Navajos. During his keynote address at a luncheon held during the Summit on Banking on the Navajo Nation, Speaker Begay said the new bank would have to provide extensive education to Navajo consumers on all types of banking services, including loans, to prevent any misunderstanding. The Navajo Nation's Credit Services Department periodically reports to the Navajo Nation Council on their administration of the Personal Loan Program and the Home Loan Program.
Collections are very weak and number in the millions as confirmed by audit reports.
While I'm sure Credit Services does everything in their power to seek repayment from individuals who receives loans, the Navajo Nation's ability to obtain repayment of outstanding loans is an on-going issue that we need to seriously examine. Another concern of Speaker Begay is the need for high-level managerial experience for the operations and management of the Navajo bank. Speaker Begay pointed out that if the Navajo Nation chooses to pursue a new National Bank Charter, the Nation will have to put up a sufficient amount of capital to pay all organization costs, compete effectively in the market area and support planned operations adequately. We need to ensure we have highly competent organizers who are familiar with national banking laws and regulations. From what I know, these laws and regulations change constantly.