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Featured Article filed under Banking | Written by Stacy Mitchell | 1 Comment | Updated on Sep 15, 2011

How State Banks Bring the Money Home

The content that follows was originally published on the Institute for Local Self-Reliance website at http://www.ilsr.org/how-state-banks-bring-money-home/

One of the most significant consequences of the consolidation of banking over the last decade is how much it has hindered the economy’s ability to create jobs. There’s no single solution to this problem, but one of the most promising strategies involves creating state-owned banks that can bolster the lending capacity of local banks, helping them grow and multiply. Continue reading

Rule filed under Banking, The Public Good | Written by admin | 1 Comment | Updated on May 5, 2011

Bank of North Dakota

The content that follows was originally published on the Institute for Local Self-Reliance website at http://www.ilsr.org/rule/bank-of-north-dakota-2/

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. Continue reading