Are State-Run Banks a Good Option?

a bank teller hands out cash - state banks
a bank teller hands out cash - state banks

Local news outlets in the state of Washington are reporting that legislators there are considering launching a government-run bank to compete with the "too big to fail" banking behemoths. The idea might sound strange, but it's not without precedent: North Dakota has had a state-run bank since back in 1919, and by all accounts, it's successful.

Other states, including Illinois, Virginia, Massachusetts, Maryland, Florida, Michigan, Oregon, California and Hawaii, have looked into the idea of creating their own state banks, intrigued by the amount of money North Dakota has been able to earn through its bank.