State-Owned Bank of North Dakota is a HUGE Success!

In 2014, the state Bank of North Dakota was more profitable than Goldman Sachs and J.P. Morgan Chase. And, that's why every state should own their own depository institution.

Most people attributed the Bank of North Dakota's success with the oil boom in the region, but their latest report shows that last year was their most profitable year ever, despite the fact that their state's oil boom has become an oil bust.

In fact, for each of the last 12 years, the Bank of North Dakota has outperformed each previous year, and their return on investment last year topped 18 percent.

While the rest of the banking industry was dealing with the turmoil of the last financial crash, the state-owned depository bank was propping up the economy. And, once again, as North Dakota's economy suffered because of the decline in oil prices, their state-owned bank has helped fund 300 new local businesses, which means a ton of local jobs.

If other states had their own banks, they could help stimulate local economies when times get tough, and they can do so without handing over millions in profit to Wall Street.

For example, if the state of California created their own state bank, they could save billions on fees and interest currently going to the big banks. And, they could better protect state pension funds and finance modern infrastructure projects like a bullet train or new green energy.

Rather than simply throwing money away in the form of interest and fees, states could protect depositors, boost local economies, and fund the new infrastructure needed for the modern era.

North Dakota has proven that state-owned banks are a win-win for all of us, and more states should follow their example.


chuckle8's picture
chuckle8 6 years 46 weeks ago

I assume big money is stopping states from adopting the North Dakota model.

Is there anything else?

BBianch 6 years 46 weeks ago

If state owned banks are politically difficult to create, a potentially effective alternative is a member owned and controlled not for profit credit union. All profits are returned to member/owners in the form of lower cost loans, higher rates on savings and lower fees.

Many credit unions have also partnered with the SBA to provide member business loans.

cccccttttt 6 years 46 weeks ago

Recommend Ellen Brown of the Public Banking Institure for more info.


wslifko 6 years 46 weeks ago

I've been using the Navy Federal Credit Union for a bit over 40 years. I have refused to use banks since then as I saw them as predators. The credit union gives me free checking, fairly good interest on savings, low interest loans & credit card. It offers Internet banking to include loan applications/approval, credit card activation, pretty much anything a bank does, the Navy Federal CU does better. Unfortunately, the rules for membership are a bit strict as only active duty military or civil servants (I think) can join.

If you haven't joined a credit union and you're using a bank, particulary one of the multi-nationals, I believe that you're making a mistake. You're also feeding the dragon.

gz4m7q's picture
gz4m7q 6 years 46 weeks ago

Canada caps profit to insurance companies. I bet their banks are a model of fairness.

Hephaestus's picture
Hephaestus 6 years 46 weeks ago

Question : Are these State Owned Banks operating the fractional reserve banking model?

ShastaKath's picture
ShastaKath 6 years 46 weeks ago

A State bank is a great idea for California, given it is set up so that the politics of our state can't interfer with its smooth running. In-house is always cheaper, if it's honest.

dianhow 6 years 45 weeks ago

As long as US has GOP Govenors / GOP do nothig blocking anti middle class Congress US economy & families ,eduaction will Suffer ! GOP has NO family values - just BS , lies , hate . GOP Pres Eisenhower 's policies would be seen today as ' flaming liberal ' Ike had class..warned us of the ' growing 'Military Industrial Complex' Lives wasted. Soldiers maimed, TBI -PTSD . Cheney Halliburton - War profiteers were only ones to profit from war . IN 60's Cruelity & death of war was shown on nightly news ! NO more. Now we pretend it does NOT exist . Our young enlist- most poor - and fight our needless immoral wars ... while rest of us ' allow ' it to continue ...

Combad57's picture
Combad57 6 years 45 weeks ago

As I understand it, all state tax revenues are deposited in the ND State Bank and doled out for state spending. So in essence they act as the state treasury.

A glowing report. At least 9 other states have considered following suit. So far, no results.'s picture 6 years 45 weeks ago

We in North Dakota are fortunate to have had the progressive political party known as the Non Partisan League in power approximately a hundred years ago.

That movement, which my parents were proud members, provided the impetus to form the Bank of North Dakota, which thrives today.

A history of the movement can be found in the book entitled, "Insurgent Democracy" (

The Non Partisan League later merged with the Democratic Party, and is yet today known as the North Dakota Democratic NPL (Non Partisan League).

Unfortunately, in my opinion, as of late the citizens of North Dakota have chosen a much more conservative political path.

ikeberltersen's picture
ikeberltersen 6 years 45 weeks ago

Banking should be a service, not a gambling operation. No doubt the ND Republicans are plotting a strategy to 'privatize' their state bank, with a PR campaign explaining how the 'free market' will do it so much better.

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