BND works closely with the Legislature between and during Legislative Sessions. Legislators are an important group of stakeholders with a unique perspective on the needs in their district.
Between legislative sessions, legislators contact BND if they see an unmet needs in their district. Many of those needs can be filled with current programs. If not, the Legislature has the option to pass legislation to start a new program.
The Legislature may utilize Bank profits to fund the General Fund. This is not a process taken lightly by the Legislature or BND. Capital ratios of the Bank must be maintained, just like a bank or credit union must maintain ratios in the private sector. BND maintains adequate reserves and allowance for credit loss to protect itself from credit risk embedded in its loan portfolio. We utilize a model that considers specific risks and economic factors to ensure adequate allowance levels.
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