[4] Other states have tried to replicate the BND elsewhere, but have been limited by political gridlock and the power dynamics in banking.

[4] Profits from the bank are either deposited in North Dakota's general fund, or are used to support economic development in the state.

[9] Various chapters in the North Dakota Century Code deal with the bank's role within the state.

[7] Other entities may also open accounts at the Bank; however, BND has only one office and offers fewer retail services than other institutions.

Droughts, price suppression by grain dealers, price increases by farm suppliers outside the state, as well as the high interest rates (up to 12%) set by commercial banks in the Twin Cities and New York City on farm loans made it hard to make a living as a farmer in the state.

[7][10] The bank was initially conceived by populists in the Non-Partisan League, who wanted to reduce farmers' dependence on out-of-state corporations via regulation and public ownership of economic infrastructure.

[7] Originally proposed as a credit union-style institution to free the farmers of the state from predatory lenders in Minneapolis and Chicago,[10] The business-backed Independent Voters Association then pursued political processes to force the bank's closure.

[14] The recall of NPL Governor Lynn Frazier effectively ended that plan, with BND taking a more conservative central banking role in state finance.

[4][10] In the 1940s and 1950s, BND shifted towards a more passive policy, focusing less on farm loans and more into managing the state's investments and providing services to local banks.

[10] The BND's support of small commercial banks was important in their ability to provide relief during the pandemic, leading to North Dakota having the highest density of approved paycheck loans in the United States.

[16] A 2011 report by the Boston Fed found that the BND "enhances the viability of small banks" in North Dakota through its partnerships with them.

[7] Thus, smaller banks are led to either grow and consolidate or withhold information while losing access to larger loans.

[4][7] As a result, BND has been described as creating an "alternative, decentralized, and regionally based circuit of capital for North Dakota [...] retying banking and the financial sector to the local economy and small business development".

[7] The BND is also seen as quicker to act during disasters than the federal government, meaning it is able to provide liquidity during and reduce the financial effects of crises.

For example, a statement from BND during the 2008 crisis mentioned that their efforts to assist ND banks with liquidity "must be tempered with existing federal programs incl.