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 During the early 1900's, North Dakota's economy was based on agriculture.
Serious problems in-state 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.
Bank of North Dakota was charged with the mission of "encouraging and promoting agriculture, commerce and industry" in North Dakota. It was never intended for Bank of North Dakota to compete with or replace existing banks. Instead, Bank of North Dakota was created to partner with other banks and assist them in meeting the needs of the citizens of North Dakota.
 Bank of North Dakota opened June 28, 1919, with $2 million of capital. Today, the Bank operates with more than $160 million in capital. In partnership with over 100 other North Dakota financial institutions, Bank of North Dakota continues to meet its mission to promote the development of agriculture, commerce and industry in North Dakota.
In 1967, Bank of North Dakota made the first federally insured student loan in the nation. The Bank continues to provide a variety of loans for students wanting to pursue post-secondary education.
For more information about the services or history of Bank of North Dakota,
call
1-800-472-2166 ext. 5778 or e-mail bnd@state.nd.us
Deposit Base
In contrast to most commercial banks, Bank of North Dakota is not a member of the Federal Depository Insurance Corporation. North Dakota Century Code 6-09-10 provides that all deposits in Bank of North Dakota are guaranteed by the state.
The deposit base of Bank of North Dakota is unique. Its primary deposit base is the State of North Dakota. All state funds and funds of state institutions are deposited with Bank of North Dakota, as required by law. Other deposits are accepted from any source, private citizens to the US government.
Policy and Governance
The state Industrial Commission oversees Bank of North Dakota, as mandated
by the 1919 state legislature. Members of the Industrial Commission are
the Governor, who acts as chairman, the Attorney General and the Commissioner
of Agriculture of the State of North Dakota.
The Bank also has a seven-member Advisory Board appointed by the Governor. The members are knowledgeable in banking and finance. The Advisory Board reviews the Bank's operations and makes recommendations to the Industrial Commission relating to the Bank's management, services, policies and procedures.
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