Is the Bank of North Dakota a state-owned bank?

The Bank of North Dakota is owned by the state of North Dakota. The Legislature established it in 1919, and the state Industrial Commission oversees its operation. The commission consists of the governor, attorney general and agriculture commissioner.

State law requires North Dakota government funds to be deposited in the bank unless another investment is specifically authorized. Unlike most commercial banks, its deposits are not insured by the Federal Deposit Insurance Corp. Instead, state law guarantees them through the full faith and credit of North Dakota.

The bank operates as both a financial institution and a state agency. It partners with local banks and credit unions, provides banking services to government agencies and supports lending for agriculture, businesses, infrastructure and students. It is currently the only state-owned bank in the United States. Its profits may also be transferred or appropriated for state purposes through the legislative process.