I have questions about the Bank of North Dakota. How does it work?
The Wikipedia page about this bank says,"The bank does have an account with the Federal Reserve Bank, but deposits are not insured by the Federal Deposit Insurance Corporation [FDIC], instead being guaranteed by the general fund of the state of North Dakota itself and the taxpayers of the state."
Huh? What happens if there is a run on the bank that renders it unable to meet the demand for withdrawals? What is the purpose of the account with the Federal Reserve Bank? Why are deposits not insured by the FDIC? Doesn't this alarm potential depositors?
The bank does not create the money for its loans, does it? If it does, is the bank bound by the same rules as FR member banks? If not, what are the rules for issuing loans and maintaining sufficient reserves? What authority oversees this bank's loan balance?
The bank has only one office in the state. It is in Bismarck. How does that adequately serve the citizens of the state?
I have not found answers to these questions in the articles and books that tout this bank as an example worth emulating.
There must be an OpEdNews author/subscriber who can enlighten me. Someone please help.