Hennen: North Dakota’s banks are in good hands

I’ve three vital factors to get throughout on this column:

1. Our banks are protected!
2. Our banks are protected!
3. Our banks are protected!

The echo-chamber company media is a harmful weapon. They’ll simply take the errors of 1 poorly run California financial institution that you simply’d by no means heard of earlier than and switch it into a pretend disaster.
I’ve a suggestion for these reporters who dig yelling “Fireplace!” in a crowded theater. Relatively than observe the pack and report the identical factor everybody else does, strive a novel angle. Why do not you evaluate North Dakota banks to Silicon Valley Financial institution or another such nationwide or regional financial institution? The distinction is stark.

To be clear, all banks have confronted difficult occasions because of the Biden administration. The large spending and money-printing insurance policies have introduced historic inflation. Over the past 12 months, inflation has spiked to 40-year highs. That brought about the Federal Reserve to hike rates of interest eight occasions within the final 12 months. Which means much less borrowing and fewer earnings for banks. However our group banks anticipate each state of affairs and plan for it.

Anne Balcer, senior govt vp, chief of presidency relations and public coverage for the Impartial Neighborhood Bankers of America, instructed me: “One of many issues we noticed earlier than Silicon Valley Financial institution collapsed was the buyers within the financial institution had been pulling their very own fairness. They had been promoting their very own inventory within the financial institution. They usually themselves, the insiders, had been those working first.”

“What we see with our group banks is the other. Normally, insiders are placing cash in after they anticipate difficult monetary occasions. Each economist I’ve talked to since final September has mentioned we’re on the verge of a recession. So what our group banks have carried out is taken steps to be notably conservative, guaranteeing that they’re in a protected and sound place. And actually that’s to ensure there isn’t a disruption in providers that they’ll present to their group members. Certainly one of many variations is how they create steadiness sheets that can face up to these altering financial occasions. They’ve been round for a whole lot of years and absolutely intend to stay in place for the following hundred or so to return.”

I additionally requested tv star and entrepreneur Kevin O’Leary of “Shark Tank” fame about one in all our most well-known banking belongings

throughout his current go to

to North Dakota: “That is the one state within the union with its personal efficient sovereign wealth financial institution, banking is beneath scrutiny. Now, regional banks everywhere are going beneath, however not right here. I imply, you guys began your individual financial institution in 1919, and you’ve got had just about no failures as a result of it is well-run.”

Requested to match our banks to what occurred with Silicon Valley Financial institution, he mentioned: “In a nutshell, it is a financial institution run by idiots. It is that easy. These are robust phrases, however it’s true. These guys ran the financial institution like a hedge fund. Everyone ought to come to North Dakota. You do it proper!”

In case you have any doubt concerning the energy of our banks, ask your banker. They’d love to clarify how they do it in a different way right here in North Dakota.

Scott Hennen hosts the statewide radio program “What’s On Your Thoughts?” On AM 1100 “The Flag”, AM 1090 KTGO “The Flag” and AM 1460 KLTC. E mail him at

ScottH@FlagFamily.com

This column doesn’t essentially replicate the opinion of The Discussion board’s editorial board nor Discussion board possession.