Fact Brief

Is the Bank of North Dakota the only public bank in U.S. history that has never failed?

No.

The Bank of North Dakota has operated continuously since 1919 without failure, but it is not the only public banking institution in U.S. history to avoid failing.

The North Dakota News Cooperative is partnering with Gigafact to produce timely Fact Briefs, which are quick, evidence-based fact checks about trending claims relevant to North Dakota.

One example is the State Bank of Indiana (1834–1859), a state-chartered banking system that operated for 25 years and closed when its charter expired, not because it failed.

The State Bank of Indiana remained solvent and wound down operations when its charter expired rather than collapsing financially. When the charter ended in 1859, the system was dissolved as planned and its branches reorganized into new banks.

The Bank of the State of South Carolina operated for nearly six decades under state ownership before lawmakers ordered its liquidation following the Civil War, and its remaining assets were transferred to the state.

While the Bank of North Dakota is widely recognized as the nation’s longest-operating state-owned bank and the only one still operating today, it is not historically unique in avoiding failure.

About Fact Briefs:

Fact Briefs are bite-sized, well-sourced explanations that offer clear "yes" or "no" answers to questions, confusions, and unsupported claims circulating online. They rely on publicly available data and documents, often from the original source. Fact Briefs are written and published by newsrooms in the Gigafact network. Each brief is limited to 150 words or fewer and is not intended to provide an in-depth analysis, but rather to deliver concise, definitive answers grounded in verified information.

This fact brief is responsive to conversations such as this one.

Sources:
Federal Deposit Insurance Corporation: A Brief History of Deposit Insurance in the United States.
Indiana Historical Society: State Bank of Indiana Branch Condition Report.
Federal Reserve Bank of St. Louis: History of Banking in South Carolina.

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