Bank of North Dakota
To deliver quality, sound financial services that promote agriculture, commerce and industry in North Dakota.
During the early 1900's, North Dakota's economy was based on agriculture. Serious in-state problems prevented
cohesive efforts in buying and selling crops and financing farm operations. Grain dealers outside the state
suppressed grain prices; farm suppliers increased their prices; and interest rates on farm loans climbed.
By 1919, popular consensus wanted state ownership and control of marketing and credit agencies. Thus, the
state legislature established Bank of North Dakota and the North Dakota Mill and Elevator Association.
BND opened July 28, 1919, with $2 million of capital. Over the years, our fiscal responsibilities to the state have
increased dramatically. Today, the Bank operates with more than $270 million in capital. The State of North
Dakota began using bank profits in 1945 when money was first transferred into the General Fund. Since that
time, capital transfers have become the norm to augment state revenues.
In partnership with more than 100 other North Dakota financial institutions, Bank of North Dakota continues to
meet and expand its 90-plus year mission to promote the development of agriculture, commerce and industry in
Organizational Structure of the Bank
The 1919 State Legislature created the State Industrial Commission whose function was to conduct and
manage, on behalf of the State of North Dakota, certain utilities, industries, enterprises, and business
projects. The Industrial Commission was charged with the operation, management, and control of Bank
of North Dakota. The Industrial Commission is composed of the Governor (who acts as Chairman), the
Attorney General, and the Agriculture Commissioner of the State of North Dakota.
Also joining the State Industrial Commission in overseeing the operations of Bank of North Dakota is the
Bank of North Dakota Advisory Board of Directors, which was established by state statute in 1969. The
Governor of North Dakota was given the power to appoint Advisory Board members knowledgeable in
banking and finance to the five-member board. The Advisory Board has since been expanded to include
seven members. Duties of the Advisory Board include review of the Bank's operations and
recommendations to the Industrial Commission concerning management, services, policies and
1 Find Bank of North Dakota @ www.banknd.nd.gov
Bank of North Dakota’s Executive Committee consists of seven members including the president and
CEO and leaders in Lending, Banking, Accounting and Treasury, Student Loans, Human Resources and
There are 168 people employed by Bank of North Dakota.
Bank of North Dakota Is an Economic Development Bank
Bank of North Dakota has resided in Bismarck for over 90 years, moving to its current location in 2008. There are
no branches of the Bank.
Participation with ND’s Financial Institution
BND works in partnership with most financial institutions in North Dakota among a broad range of
services and products. This efficient business model allows us to promote the state’s programs and work
with knowledgeable people that have the best interests of North Dakota taxpayers in mind.
Retail Banking – While BND does have retail products similar to other financial institutions,
these services are limited in scope. Retail deposits only account for approximately 1.5 percent of
our total deposits.
Federal Banking Laws and Regulations mandate financial institutions the responsibility to obtain
and document appropriate identification and other pertinent information of their customers.
Procedures require that all new customers open accounts in person at the Bank.
Demand Deposit and NOW accounts (checking accounts) are limited to North Dakota residents.
Savings accounts and Certificates of Deposit are available to all U.S. Citizens.
The Majority of Bank Deposits come from Tax Collections and State Fees
The deposit base of Bank of North Dakota is unique. The original act of 1919 provided that all
public funds were to be deposited with the Bank of North Dakota. An initiated measure in 1921
changed this by providing that all political subdivisions, with the exception of the state itself,
make deposits either with private institutions or with the Bank of North Dakota. Because the
law requires that all monies of the state and state institutions must be deposited with Bank of
North Dakota, the state does not have the problem of allocating funds to various financial
institutions. "The Bank of North Dakota may receive deposits
As described in Section 9 of the original act:
from any source, including the United States Government and any foreign or domestic
individual, corporation, association, municipality, bank or government". The Bank of North
Dakota pays comparable interest on all deposits whether state or private.
2 Find Bank of North Dakota @ www.banknd.nd.gov
BND Returns Profits to the State
Beginning in 1945 BND began transferring profits to the general fund. Since then BND has returned over
$555 million to the general fund.
BND is Not FDIC Insured
In contrast to most commercial banks, Bank of North Dakota is not a member of the Federal Deposit
Insurance Corporation (FDIC). North Dakota Century Code 6-09-10 provides that all BND deposits are
guaranteed by the full faith and credit of the State of North Dakota.
Minneapolis Federal Reserve Bank
BND is an online member of the Minneapolis Federal Reserve Bank. We do check processing, maintain a
reserve requirement, safe keep all our Fed book entry securities and have discount window borrowing
Bank of North Dakota Service Areas
On behalf of the State of North Dakota, the Bank administers several lending programs that promote
agriculture, commerce and industry. Financing economic development is the thrust of Bank of North
Dakota’s efforts. The Bank is specifically authorized to assist numerous other financial institutions in
providing financing to stimulate economic development in the state.
BND is involved in two types of lending: direct lending and participation loans.
BND by statute can do anything any other bank can do, unless restricted by statute. Mostly by practice
we do not make direct loans. However, legislative action has given express lending authority to BND for:
The purchase or acquisition of bank stock or the formation of a bank holding company.
• The acquisition or refinancing of farm real estate by qualified individuals.
• Assistance with post secondary educational costs (i.e., student loans).
All other lending by BND is through participation with a lead financial institution. This lead lender can be
any qualified financial institution - most notably a bank, savings and loan, credit union or Farm Credit
3 Find Bank of North Dakota @ www.banknd.nd.gov
Lending Service programs include: (See www.banknd.nd.gov/lendingservices for in-depth details.)
Farm/Ranch Financing Programs
• Farm and Ranch Participation Loan Program
BND's Farm and Ranch Participation Loan Program is founded on two principles: to serve the
agricultural credit needs of the state, and to ensure credit decisions are made on a sound and
collectible basis. This program is broadly defined to accommodate the wide variety of credit
needs in North Dakota's agricultural market.
• Beginning and Established Farmer/Rancher Financing Programs
Any farmer or rancher will tell you that the business of agriculture is more difficult today than it
has ever been. The challenges to the young or beginning farmer are even greater. Bank of North
Dakota can help you meet those challenges through one of a number of farm loan programs
that makes financing more affordable and easier to access.
• Livestock Retention/Improvement Programs
In order to position North Dakota farmers and ranchers to survive in today's agricultural climate,
Bank of North Dakota offers assistance to livestock producers with multiple programs.
• Farm Income Diversification, Value-Added Equity Financing, and Irrigation Programs
In another effort to bolster North Dakota’s farms and ranches, Bank of North Dakota has
concentrated on helping producers diversify their incomes.
• Guarantee Loan Programs for Farmers and Ranchers
Bank of North Dakota offers two Guarantee Loan programs to farmers and ranchers, the
Livestock Loan Guarantee Program and the Farm Real Estate Loan Guarantee Program. A loan
guarantee is an agreement that in the event of default under the promissory note, the Bank
shall pay to the lender the percentage as described in the specific program material referenced
under the Farm Real Estate Loan Guarantee Program.
Business Financing Programs
Bank of North Dakota (BND) offers a number of programs that make financing easier to access, and less
expensive. BND’s business financing programs include:
Commercial Bank Participation Loan Program
BND's Commercial Bank Participation Loan Program is founded on the principles that all loans
should serve the legitimate credit needs of the state & be made on a sound and collectible basis.
4 Find Bank of North Dakota @ www.banknd.nd.gov
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I contenuti di questa pagina costituiscono rielaborazioni personali del Publisher Atreyu di informazioni apprese con la frequenza delle lezioni di Elementi di economia e studio autonomo di eventuali libri di riferimento in preparazione dell'esame finale o della tesi. Non devono intendersi come materiale ufficiale dell'università Bologna - Unibo o del prof Soci Anna.
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