NEW YORK Feb 24 Massachusetts should consider
creating a state-owned bank, which could help boost lending
for small businesses the way North Dakota has done since 1919,
according to the president of the state Senate.
Therese Murray, the Senate president, has called for a
commission to study whether Massachusetts, whose economy
partly relies on its money management firms, should adopt the
North Dakota model, which has been credited with helping that
state escape the worst of the recession.
In Massachusetts, such a bank might, for example, replace
the commercial institutions that now collect fees for managing
the Commonwealth's revenues.
A new Massachusetts state bank could help unfreeze the
still sluggish credit markets by lending funds to other banks,
enabling them to make more small business loans, for example.
For more details on North Dakota's bank, the nation's only
state-chartered bank, please see: www.banknd.nd.gov/
Other states, including Idaho, Florida and California,
also are considering North Dakota's model, according to the
proposal from Murray, a Democrat, who said "there may be other
reasons why North Dakota has escaped the worst of the
"But certainly their experience warrants careful
consideration," Murray's proposal added, referring to North
North Dakota is one of a cluster states in the center of
the country that showed resilience and stability during the
recession, thanks to strong commodity prices and the lack of a
significant housing bubble, Moody's Investors Service said in
November. For details, please see: [ID:nN13463565].
The Massachusetts Senate is expected to take up Murray's
bill in March; if it is enacted, the commission's study might
take a year.
(Reporting by Joan Gralla; Editing by Jan Paschal)