House Co-Sponsorship Memoranda

NEW!

Subscribe to receive notifications of new Co-Sponsorship Memos circulated

By Member | By Date | Keyword Search

House of Representatives
Session of 2019 - 2020 Regular Session

MEMORANDUM

Posted:	September 3, 2020 02:13 PM
From:	Representative Sheryl M. Delozier
To:	All House members
Subject:	Protecting the Banking Fund

Please join me in co-sponsoring legislation that would strengthen the independence of the Banking Fund and ensure a strong dual banking system in our Commonwealth.    This bill is the work of several months of negotiation between the Banking Groups (PA Bankers, CrossState Credit Union Association, and the Community Bankers) and the Department of Banking and Securities.  All are in support of this final language.   Initially introduced by Chairman Keller as HB1957, there has been significant work done on the bill and rather than have a gut and replace amendment, I have decided to introduce a new piece of legislation.   As you know, State-chartered banks and credit unions pay semi-annual assessments to the Department of Banking & Securities (DOBS) which are then deposited into the Banking Fund to pay for the operations of the department and for the examination of state-chartered institutions. Additionally, if needed, the Fund can also be used to take control of or liquidate a financially distressed non-federally insured institution (e.g., a non-depository trust company) using the Fund’s Institution Resolution Restricted Account (IRRA).   In the past 18 months, two transfers have been made from the Banking Fund.  Over the past two fiscal years, about $40 million dollars has been transferred to the General Fund and also to supplement the budgets of the Dept. of Conservation and Natural Resources (DCNR) and the Dept. of Environmental Protection (DEP).    Specifically, this new legislation will: Change the Banking Fund to a Trust Fund for the benefit of banking institutions and credit unions. To be used for examinations and regulation of institutions. A reserve shall be maintained to cover any emergencies, including loss of revenue or adverse economic conditions. Change the Institution Resolution Account into a Trust Fund for the benefit of banks, bank and trust companies, trust companies, credit unions, savings banks, and their customers. Any reserve shall be used to pay the costs of the resolution of an institution or credit union and will not impair the ability of the department to continue its duties.   Please join me in cosponsoring the legislation.

---