Arizona lawmakers are concerned over the bank closures, which have created higher transaction costs and substantial difficulties for Arizona companies engaged in cash-intensive lines of business in cities and towns along the U.S.-Mexico border.
Senator McCain and Flake sent letters to the heads of four large banks – Bank of America, Citigroup, JPMorgan Chase, and Wells Fargo – requesting information about several branch closures along the U.S.-Mexico border.
“Over the past year, large financial institutions have scaled back their services along the border by closing local branches and instituting a number of cross-border banking restrictions,” writes Senator John McCain. “These actions have not only made it more difficult for certain Arizonan entrepreneurs, who own or manage cash-intensive businesses, to obtain the necessary capital to run those businesses, but have also presented new obstacles for companies that do business in both the United States and Mexico… As regulatory pressures increase and compliance costs continue to rise, it is crucial for the economic vitality of border communities that local businesses continue to have access to necessary banking services.”
“With $14 billion in bilateral trade, Mexico is Arizona’s largest trading partner, but many companies involved in that trade are facing an additional challenge in meeting their banking needs on the border,” said Bruce Bracker, Chairman of the Greater Nogales Santa Cruz County Port Authority. “The major banks are pulling out of border communities, leaving an entire business sector and the general population underserved. I am extremely happy to see Senator McCain take on this critical issue. At a time when the U.S. economy is finally showing signs of sustainable growth, we need to find ways to support small and medium-sized businesses. But as banks leave the border communities, local businesses are not able to grow to meet the demand for increased trade among the two nations.”
“We have received Sen. McCain’s letter and are looking forward to responding to the questions he has outlined within it,” Wells Fargo Vice President Danny Ischy told Phoenix BizJournal. Representatives from Chase and Bank of America did not respond according to Phoenix BizJournal.