Question: Do Native American institutions present unique governance issues?
Answer: Well the question arises as to whether there are differences in corporate governance that occur when a Native American tribe opens a minority owned institution. And, really there are.
The tribes have a unique status which is very much like that of an independent country. And, also they engage through various subsidiaries in business enterprises.
One of the things that regulators have to do in dealing with a bank that is owned either directly or indirectly by the tribe is to understand that relationship between the tribe and the bank.
The bank holding company act restricts the actions that can be taken by a corporate owner of a bank and as part of applications by tribal units they frequently give a commitment to the Board of Governors that they will be regulated as though they were a non-tribal entity – as though they were like any other corporation that owned a bank.