|Posted:||January 14, 2021 12:14 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.
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:
Introduced as HB859