The Senate today (May 12) approved legislation introduced by Senator Dan Laughlin that would strengthen the independence of the state Banking Fund and ensure a strong banking system in Pennsylvania. Senate Bill 432, which now goes to the House of Representatives for consideration, changes the Banking Fund into a trust fund.
“State-chartered banks and credit unions pay bi-annual assessments to the Department of Banking & Securities for the administration of the Department, for the regulation and oversight of the banking industry in Pennsylvania and also to establish a reserve as is needed for the Department to be accredited as a financial regulatory agency,” Senator Laughlin said.
In 2018 and 2019, a total of more than $42 million was siphoned from the Banking Fund to augment the state General Fund and the budgets of the Departments of Conservation & Natural Resources and Environmental Protection.
“These types of transfers threaten the state charter,” Senator Laughlin said. “In today’s climate, we need to ensure our banking industry thrives. They are influential in helping families get back on their feet, which is key to economic recovery and further development.”
Contact: Matt Azeles mazeles@pasen.gov