HOUSE MEMORIAL 56

47th legislature - STATE OF NEW MEXICO - second session, 2006

INTRODUCED BY

Hector H. Balderas

A MEMORIAL

REQUESTING THE NEW MEXICO LEGISLATIVE COUNCIL TO CREATE A TASK FORCE TO STUDY AND MAKE RECOMMENDATIONS CONCERNING THE PROBLEM OF BANK CLOSURES IN RURAL AREAS OF NEW MEXICO.

     WHEREAS, a national banking institution has recently announced that it will close the only banks in Roy, Wagon Mound and Vaughn, New Mexico, including the only bank in Harding county; and

     WHEREAS, these banks provide an important service to these rural communities, including providing banking to senior citizens, retirees, local businesses, school districts and local governments; and

     WHEREAS, the announced closings have caught many rural citizens by surprise and have left them without reasonable alternatives, causing them to face extended travel to meet their banking needs; and

     WHEREAS, large, publically traded banking institutions believe that due to increasing government regulation, the cost of doing business in rural areas with small population bases is no longer profitable;

     NOW, THEREFORE, BE IT RESOLVED BY THE HOUSE OF REPRESENTATIVES OF THE STATE OF NEW MEXICO that the New Mexico legislative council be requested to form a rural banking task force to be comprised of the mayors of Roy, Wagon Mound and Vaughn, New Mexico or their designees; the chair of the board of county commissioners of Harding county or the chair's designee; the director of the financial institutions division of the regulation and licensing department or the director's designee; the secretary of economic development or the secretary's designee; the executive directors of the New Mexico finance authority and the New Mexico mortgage finance authority or their designees; representatives from the New Mexico bankers association, the credit union association of New Mexico and community banks; and representatives of community residents and business persons affected by the bank closings; and

     BE IT FURTHER RESOLVED that the rural banking task force be requested to study solutions to the rural banking crisis in New Mexico and to consider what incentives might be implemented to support a viable banking industry in rural New Mexico; and

     BE IT FURTHER RESOLVED that the rural banking task force be requested to report its findings and recommendations to the appropriate legislative interim committee no later than November 1, 2006; and

     BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the mayors of Roy, Wagon Mound and Vaughn, New Mexico; the chair of the board of county commissioners of Harding county; the director of the financial institutions division of the regulation and licensing department; the secretary of economic development; the executive directors of the New Mexico finance authority and the New Mexico mortgage finance authority; the New Mexico bankers association; the credit union association of New Mexico; and the co-chairs of the New Mexico legislative council.

- 3 -