Missouri’s New Medical Marijuana Industry Puts Banks In A Tough Spot

Robbie Guard sees a green opportunity in Missouri’s newest industry — medical marijuana.

He runs the Cape Girardeau office for MRV Banks. The 13-year-old institution has just three locations along the Missouri side of the Mississippi River. 

As a relatively young bank with a small footprint, it struggles to bring in new accounts. Guard hopes the newly legal medical marijuana industry will change that. 

“Since they are considered unbankable by many banks, it does create a supply and demand, and therefore there is some revenue to be made,” he said.

Aside from MRV Banks, it’s hard to know exactly where marijuana-related businesses across the state will put their money. Most banks are staying quiet about their interest.

That’s because marijuana is still federally illegal, and Missouri banks are federally insured. The contradiction between laws leaves it up to banks to decide whether the risk is worth the reward.

Looking for guidance

Banks are in the business of making money, and the medical marijuana industry is expected to generate a lot of it. The Missouri Cannabis Industry Association anticipates it will grow into a $480 million-a-year industry. [Read more at St. Louis Public Radio]