Home About Latest Browse RSS Advanced Search

Federal Reserve Bank of Boston
New England Public Policy Center Research Report
The Bank of North Dakota: a model for Massachusetts and other states?
Yolanda Kodrzycki
Tal Elmatad

In 2010, Massachusetts legislators considered whether to create a state-owned bank as a means to address concerns about credit availability and other economic challenges stemming from the financial crisis and Great Recession of 2007-09. In 2011 a commission was established to investigate the feasibility of setting up such an institution. This research report informs the work of that commission. ; The report provides an in-depth examination of the only state-owned bank in the nation, the Bank of North Dakota (BND). It discusses BND’s history and current operations, and analyzes the degree to which the bank stabilizes the state economy, provides local businesses improved access to credit, augments the lending capacity of private banks, and contributes revenues to the state government. The authors conclude that, in recent years, BND’s most important role has been to serve as a lending partner for North Dakota’s numerous small banks, but that its willingness and capacity to offset a serious credit crunch has not been shown, owing to the comparatively limited stresses on North Dakota banks in the recent national crisis and economic downturn. The report estimates that the potential costs of starting up a state-owned bank in Massachusetts could be significant.

Download Full text
Download Full text
Cite this item
Yolanda Kodrzycki & Tal Elmatad, The Bank of North Dakota: a model for Massachusetts and other states?, Federal Reserve Bank of Boston, New England Public Policy Center Research Report 11-2, 2011.
More from this series
JEL Classification:
Subject headings:
Keywords: Banks and banking - Massachusetts ; Banks and banking - North Dakota
For corrections, contact Catherine Spozio ()
Fed-in-Print is the central catalog of publications within the Federal Reserve System. It is managed and hosted by the Economic Research Division, Federal Reserve Bank of St. Louis.

Privacy Legal