Public Banking for New Mexico
Bank of North Dakota
The highly successful Bank of North Dakota has been owned and operated for the benefit of the people of North Dakota for 100 years. The Associated Press reports that in 2019 the Bank of North Dakota (BND) recorded its 16th consecutive year of record profits, with $169 million in net earnings. BND has helped North Dakota maintain a low unemployment rate, large state government budget surpluses, a robust network of community banks, and high credit availability even during economic crises.
The Bank of North Dakota’s success could be the Public Bank of New Mexico’s.
- North Dakota had the lowest unemployment rate in the nation during the 2007-08 recession. Current Sept 2020 rates: North Dakota, 3.8%; U.S., 7.9%; New Mexico, 9.4%.
- Bank of North Dakota (BND) has added to the state’s annual operating budget $300+ million over the past 10 years.
- North Dakota community banks are thriving because of their partnerships with BND: 10 community banks per 100,000 population, the highest in the U.S.
- BND originated or renewed 15,696 loans to state businesses, projects and students, totaling $1.33 billion in 2019. The total loan portfolio is $4.5 billion.
- BND works actively to create successful new businesses to reduce the state’s dependence on oil and gas.
- Founded in 1919 with $2 million in capital, BND reported assets of $7.0 billion at the end of 2019.
- BND responded to the COVID-19 crisis with confidence in 2020, filling the gaps that federal programs didn’t support and seeing a 15% Return on Investment (ROI).
Read a detailed comparison of New Mexico and North Dakota demographics, and contributions to state budgets and economies by New Mexico Permanent Funds vs BND sources.