An 'emerging marketâ€™ at home.
Canadaâ€™s banks making a big push
into aboriginal communities
A few years ago Chief Darcy Bear and the Whitecap Dakota First Nation in Saskatchewan, made a practical decision to cut ties with the handful of financial institutions that were backing their infrastructure loans in favour of a single player; the Bank of Montreal (BMO).
It was a simple choice, Chief Bear explained. Along with its domestic peers, BMO made a concerted push into Aboriginal banking; then they went a little further!
In the past, the band was forced to depend on relatively short-term debt. This made it harder to make the case for bigger infrastructure projects with extended lifespans such as roads, schools and bridges. Instead of forcing the band into traditional 5 or 10 year arrangements, BMO began offering longer more favourable 20 and 25 year terms that were more common in off-reserve municipal projects!
Read the whole story at the Financial Post website.