The Bank of North Dakota: Banking’s ‘public option’ – $350 million in profits to North Dakota’s general fund since 1997.

As Congress returns this week to writing a bill overhauling regulation of the banking industry, some states are pondering homegrown solutions to the credit crisis. And for inspiration, they’re looking to a place that is far away from Wall Street in more ways than one: North Dakota.

North Dakota operates the country’s only state-run bank. The Bank of North Dakota http://www.banknd.nd.gov/ makes loans to businesses and to other banks, and has come to be seen both in and out of the state as a beacon of economic stability and financial independence.

Then there’s the revenue: The bank has turned over $350 million in profits to North Dakota’s general fund since 1997.

Bills intended to create similar state-run banks or study the idea are being discussed in Hawaii, Illinois, Massachusetts, Virginia and Washington State. Five more states have contacted the Bismarck-based bank in hopes of learning more about how the bank’s 168 employees straddle the line between public benefit and private enterprise.

By Jake Grovum, Special to Stateline.org

Full Story: http://www.stateline.org/live/details/story?contentId=476951