Bank of North Dakota briefs task force on lending programs, school and infrastructure loans and a bank-led stablecoin pilot
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Summary
Bank of North Dakota officials reported portfolio size, loan composition and legislative loan programs to the task force and described a planned ‘Roughrider’ stablecoin pilot developed with a core vendor to test next-generation payment rails in coordination with the state’s financial institutions.
Bank of North Dakota executives updated the Legislative Task Force on Government Efficiency about the bank's loan portfolio, legislatively directed lending programs and a planned pilot for a state-linked stablecoin.
Kelvin Hollett, Chief Business Development Officer, and Kirby Ebinger, Chief Credit Officer, presented the bank's portfolio figures and program activity and fielded questions about credit quality, program terms and outreach to community banks.
Portfolio and credit-quality summary - Kelvin Hollett said the Bank of North Dakota had total assets of about $10.6 billion and total capital of roughly $1.2 billion. The loan portfolio presented to the committee totaled about $6.1 billion. - Kirby Ebinger described the loan mix: roughly $4.1 billion commercial and industrial loans, about $980 million in student loans and roughly $831 million in agriculture loans. Commercial loan growth was strong in 2022–24 when activity spiked and has slowed recently. - The bank's allowance for loan losses was about $127 million (approximately 2% of total loans), a higher reserve posture than the statewide average. Net charge-offs have been low over the past decade, and Ebinger said recent problem credits are isolated rather than systemic.
Legislatively directed programs - Hollett summarized 25 legislatively directed programs the bank administers. The School Construction Revolving Loan Fund, the Infrastructure Revolving Loan Fund and water infrastructure lending were among the largest programs. School loans frequently use 2% interest terms; loan terms vary by project type and population size with the majority of loans shorter than 30 years. - Hollett described the MATCH program (large economic-development projects) and the bank's role coordinating Legacy Fund proceeds when relevant. The bank reported about $289 million in MATCH commitments and approximately $260 million available for new loans in that pool at the time of testimony.
Roughrider coin pilot Hollett described a bank-led “Roughrider” stablecoin pilot developed with a core processor (Fiserv) to test modernized payment rails for banks and fintechs. He said the effort differs from prior public pilots because it is being designed with the banking community and core vendors rather than rolling out directly to retail consumers.
Why it matters: the pilot is intended to position the state's banking infrastructure to meet fintech-driven payment demand and to test custodial, settlement and regulatory frameworks. Hollett said the plan is to keep the initial test narrowly focused to learn operational and compliance details before any broader rollout.
Questions and next steps Senators and representatives asked about community-bank engagement and long-term strategy. Hollett said the bank is consulting North Dakota financial institutions and expects continued discussion with the Industrial Commission and the Legislature to refine strategy. The bank also reported on LIFT program portfolio statistics and program-specific charge-offs and repayments.
Ending The Bank of North Dakota provided data requested by the task force and said it will return with further details as pilot planning and portfolio monitoring continue.
