Oil Growth Affects Banks | Video

Michelle San Miguel | 4/11/2012

Oil development has affected just about every industry in North Dakota, including our banks. More than a hundred bankers from across the state met in Bismarck today to learn how banks in western North Dakota are being impacted by the oil boom.

Even though there`s a big demand for housing in oil country, bankers say federal regulations have seized up home mortgage lending in some rural parts of the state.

"In some respects, some of our banks have actually had to get out of the home-lending environment and said they`re not doing home mortgages anymore for the risk of being written up by regulators so it`s caused a lot of problems but we`re working through it," said North Dakota Banker`s Association President Rick Clayburgh.

Clayburgh says bankers don`t have a big demand for loans but have been seen an increase in deposits being processed.

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