A Seismic Shift- Public Banks Returning? by Joe Lange
(badlands.substack.com)
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Today's credit unions have similar charters and somewhat similar accountability to this, but get roped into central policy control by virtue of FDIC insurance, and also access to many services like ACH and Fed wire services that can only be done through federally chartered banks.
TLDR they're better than banks, but hamstrung, and subject to federal oversight if they get too big. The state bank of North Dakota is much more independent.
Most credit unions are insured by the NCUA, not the FDIC. Both insure deposits up to $250,000. In addition, credit unions also offer Excess Share Insurance Corporation (ESI), which adds an additional $250,000 of protection.
You are correct, and I should've said FDIC-like insurance. My mistake. CU's are better in many ways, but the centralized control by nat'l regulators outside the institution is a real issue, and one that the ND bank doesn't have.
States have a lot of power that they don't use. Chartering banks, without outsourcing the rules and reserve requirements to the feds, is just one of them.
They use National Credit Union Administration (NCUA) for deposit insurance though, not FDIC.