Aboriginal Financial Institutions Demand Equality

Feb

2010

Aboriginal Financial Institutions Demand Equality

Posted under: AFIs, Economics

TWCC Continues to advance aboriginal economic growth and self dependency. Current news on affairs affecting this progress is vital to the community.

TWCC Challenges the INAC Loan Loss Reserve Initiative

Indian Affairs is facing a Federal Court challenge and a complaint to the Auditor-General alleging the government is trying to run native banks out of business.

TWCC which initiated the court action says Canada’s 57 Aboriginal Financial Institutions (AFIs) were secretly and unfairly shut out of a new program to spur economic growth on reserves. TWCC launched the action in an effort to rebalance the unfair advantage afforded non-aboriginal banks at the expense of aboriginal institutions.

Additionally, aboriginal funding is being used through INAC to guarantee loan losses by non-aboriginal private banks. Effectively money intended for the direct benefit of aboriginals is being used to throttle aboriginal self-dependence and further exploitation by third party business. While Alan Park states that TWCC is “not opposed to private banks lending to aboriginal communities”, it is apparent that the manner in which the process has been implemented in this manner is heavily biased against AFIs and aboriginal economic growth initiatives.

As reported in NationTalk(1): “Ironically, the LLR program appears to be almost identical to a forerunner program developed jointly by INAC and the AFIs, the Risk Premium Offset Program, which INAC approved in 2007.”

“This is a typical Government double cross,” said Mr. Park. “INAC then takes the idea and gives it to the banks and credit unions under a new name – Loan Loss Reserve program. This gives competitors who would never touch the Aboriginal market a distinct advantage and impairs the ability of TWCC to serve its market base, the most disenfranchised of all Canadians – Aboriginals.’’

Whereas profits from money invested by TWCC and other AFIs is plowed back into the communities, non-aboriginal banks actually drain money from the communities to non-aboriginal shareholders.

INAC and the federal government profess to support aboriginal affairs however their actions do not reflect their words. In fact, their actions appear to propagate the historical ghetto model of aboriginal management and tightly controlling land use and economic freedoms.

The outcome of TWCC’s action will have long term impact on self-dependence and fair treatment of aboriginal-owned business and economics.

(1) http://www.nationtalk.ca/modules/news/article.php?storyid=27128

Other News References:

Winnipeg Free Press

http://www.winnipegfreepress.com/business/loan-plan-irks-aboriginal-group-80885092.html

The Globe and Mail

http://www.theglobeandmail.com/news/politics/native-bank-takes-ottawa-to-court-over-loan-program/article1421820/

Nation Talk

http://www.nationtalk.ca/modules/news/article.php?storyid=27128

570 News – All News Radio

http://www.570news.com/news/national/article/14521–aboriginal-bank-wants-judicial-review-says-gov-t-lending-program-discriminates

Newstalk 1010