Public Banks: Bank of North Dakota

North Dakota is the only state so far that has established a publicly owned bank. Founded in 1919, the Bank of North Dakota has a mission to “promote agriculture, commerce, and industry” and “be helpful to and assist in the development of… financial institutions… within the State.” BND functions primarily as a “banker’s bank” by providing loan participation and other support to local banks. Thanks in large part to BND, community banks are much more robust in North Dakota than in other states. North Dakota has 35 percent more banks per capita than South Dakota, and four times as many as the national average. While locally owned small and mid-sized banks account for only 30 percent of deposits nationally, in North Dakota they have 72 percent of the market.
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Access to Capital for Local Businesses

Date: 15 Apr 2014 | posted in: Banking, Retail | 0 Facebooktwitterredditmail

A significant share of locally owned businesses are struggling to secure the financing they need to grow.  Our 2014 Independent Business Survey found that 42 percent of local businesses that needed a loan in the previous two years had been … Read More

Depositing Public Funds in Local Banks – Multnomah County, Oregon

Date: 19 Nov 2010 | posted in: Banking | 0 Facebooktwitterredditmail

On November 18, 2010, the Multnomah County Board of Commissioners approved a measure that creates a Community Advantage Banking Program, under which the county will invest $10 million of its funds with qualifying local community banks and local credit unions.  The investment is expected to expand local lending, particularly to small businesses.… Read More

Glass-Steagall Act & the Volcker Rule

Date: 26 Oct 2010 | posted in: Banking | 2 Facebooktwitterredditmail

The Glass-Steagall Act created federal deposit insurance and erected a strict barrier between commercial and investment banking activities. It was repealed in 1999. In the aftermath of the financial crisis, many people, including prominent economists, policymakers, and even bankers, have called for restoring Glass-Steagall. The Volcker Rule, a provision in the Dodd-Frank financial reform bill, imposed some limits on the mixing of commercial and investment banking activities, but not the firm wall that Glass-Steagall had provided. … Read More

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