This is Part 2 of our ShiftShapers series on the New Economy
These days if a bank is stable, hasn't been bailed out and is actively lending money to stimulate local development, that would be unusual. You might even say it's against the grain.
In the entire United States, the Bank of North Dakota is the most shining example of this kind of bank. And it is against the grain.
What is the management doing right, that allows this bank ot function so well?
It's as simple as this: The Bank of North Dakota, rather than a Wall Street bank, is a state-owned bank. it's publicly owned. That enables state government to borrow money for public projects without having to pay interest or fees, resulting in more public projects and more economic health.
The success of this bank during widespread hard times, when private corporate banks continue to tighten their lending, has financially-minded people in other states exploring ways to start up their own state and county banks.
In this 30-minute interview with ShiftShaper host Daniel Kerbein, Marc Armstrong of the Public Banking Institute explains the advantages to communities when their state or county deposits money in its own bank.
For one think, the state or county doesn't have to pay interest on the money it borrows from itself. This saves billions - either ritght away, or over the long term. Local public banks can also target specific areas of local development, thus providing even more financial benefit to the community.