A Briefing On The State-Owned Bank of North Dakota

by: Posted on: December 08, 2013

By Adam Gillman

The Bank of North Dakota is state-owned and run financial institution located in Bismarck, ND. The bank was established in 1919 with the goal of spurring agriculture, commerce and industry in the state during a tough economic period.  What makes this bank unique is that it’s the only stated owned facility of its type in the nation, other than the Puerto Rico Government Development Bank.  North Dakota state government agencies are obligated to place their funds in the bank, while local governments are not legally. The bank provides a limited scope of services in comparison to larger corporate banking institutions and has only one office, which limits it competitiveness in customer banking.

The role of the bank functions much like a central bank. It has many functions such as check clearing and supervising the state’s currency, money supply and rates of interest. The bank does not have an account with the Federal Reserve Bank, instead deposits are guaranteed by the state’s general fund and its taxpayers. The bank is managed by the North Dakota Industrial Commission, comprised of the Governor, Attorney General and Agriculture Commissioner.

 

For more information:

http://banknd.nd.gov/about_BND/pdfs/faqs.pdf

http://www.salon.com/2013/03/29/north_dakota_is_bringing_socialism_back_partner/


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