Bank of North Dakota (BND) has been a resource for North Dakota since 1919 when it opened its doors to help farmers receive fair interest rates on their crop loans. Although the Bank’s mission “to deliver quality, sound financial services that promote agriculture, commerce and industry in North Dakota,” has not changed, the Bank’s role evolves as the state’s leaders rise to meet unique challenges.
BND’s vision statement embodies its present-day contributions:
Bank of North Dakota is an agile partner that creates financial solutions for current and emerging economic needs.
It accomplishes this work through strong partnerships, on both the state and local levels. At the state level, BND serves as the state’s depository for all tax revenues and provides banking services to state agencies. The Bank also manages a number of state-designated programs addressing infrastructure.
Locally, Bank programs are delivered through the statewide network of banks and credit unions. The only loans delivered directly to consumers are student loans and two agriculture loans: Beginning Farmer Real Estate and Established Farmer Real Estate. Otherwise, residents visit with their local lenders about their financing needs, and the local lender determines if it is beneficial for the client to access BND programs and applies to BND on their client’s behalf. This relationship means that BND does not compete with local lenders, but expands their ability to serve their customers, helping ensure a strong Main Street in communities of all sizes.
As a bank owned by the state, the Bank is operated like the banks we find in communities across our state. Funds are managed to create profits, but these profits are used to benefit the citizens of North Dakota rather than shareholders. Lending officers review loans and at certain levels, must be approved by a Loan Committee, Advisory Board or the Industrial Commission. An Investment Committee manages funds through investments and trades. Credit Administration assesses portfolios for risk and monitors the economic fluctuations to ensure portfolio stability.
Bank of North Dakota was established by House Bill 18 in the 1919 legislative session. It is governed by these sections in North Dakota Century Code:
Chapter 6-09: The Bank of North Dakota