The Dickinson Press reports: A new report shows what most already know: banks are booming along with oil. But the report also shows that Bakken-area banks are doing better in certain areas than their shale counterparts.
While there are similarities with banking to other states’ shale counties, “the exceptional performance of Bakken banks has generally not been replicated in other shale areas,” wrote the authors, Minneapolis Federal Reserve Bank executive vice president Ron Feldman and financial analyst Stacy Jolly.
Little of the report was surprising, said David Flynn, University of North Dakota professor of economics.
“I think it confirms a lot of what we see and know to be going on in the western part of North Dakota,” he said. “That the oil activity is leading to improved performance for banks is not a surprise.”
Perhaps the report’s best example of the boom’s residual effects is the jump in construction and land development loans, which for Bakken banks almost doubled between March 2012 and March 2013.
“There are oil direct effects and then you get these ripple effects or indirect effects that are creating growth and development in the broader economy,” Flynn said.
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