ARTICLE
Delozier Legislation Protecting Financial Consumers Advances to State Senate HARRISBURG (May 5, 2021) -- The Pennsylvania Association of Community Bankers (PACB) today applauded passage of legislation in the state House of Representatives that will help to protect Pennsylvania consumers and strengthen the integrity of the Commonwealth’s dual banking regulatory system. House Bill 859, sponsored by state Rep. Sheryl Delozier (Cumberland County), would convert the state Banking Fund into a public trust. This conversion became necessary after $42 million was transferred out of the Banking Fund over the last several years impacting the fund’s ability to cover its obligations. Among these obligations is to ensure adequate reserves to cover the failure of financial institutions not insured by the FDIC. House Bill 859 now heads to the Senate for consideration. “This legislation is critical to protect Pennsylvania consumers and taxpayers,” said PACB President and CEO Kevin L. Shivers. “We appreciate Representative Delozier’s commitment to financial consumers and thank her for her leadership and support to ensure this important legislation passed the state House.” Shivers noted that failures of uninsured financial institutions have cost taxpayers in other states tens of millions of dollars. The recent transfers from the Pennsylvania Banking Fund left that account without sufficient resources to cover losses should an uninsured institution fail. The Banking Fund is financed entirely by assessments on state-chartered banks and financial institutions and also funds the majority of the operations of the Department of Banking and Securities (DoBS). Shivers also thanked state Banking and Securities Secretary Richard Vague and department staff for working with the PACB and a coalition of financial industry groups to develop the legislation. He also thanked state House Appropriations Chairman Stan Saylor (York County) and Majority Leader Kerry Benninghoff (Centre County) for their leadership securing state House passage. “Community bankers are proud that their assessments paid to the state Banking Fund ensure the integrity and security of Pennsylvania’s financial system by funding the DoBS,” Shivers continued.
Delozier Legislation Protecting Financial Consumers Advances to State Senate
HARRISBURG (May 5, 2021) -- The Pennsylvania Association of Community Bankers (PACB) today applauded passage of legislation in the state House of Representatives that will help to protect Pennsylvania consumers and strengthen the integrity of the Commonwealth’s dual banking regulatory system. House Bill 859, sponsored by state Rep. Sheryl Delozier (Cumberland County), would convert the state Banking Fund into a public trust. This conversion became necessary after $42 million was transferred out of the Banking Fund over the last several years impacting the fund’s ability to cover its obligations. Among these obligations is to ensure adequate reserves to cover the failure of financial institutions not insured by the FDIC. House Bill 859 now heads to the Senate for consideration. “This legislation is critical to protect Pennsylvania consumers and taxpayers,” said PACB President and CEO Kevin L. Shivers. “We appreciate Representative Delozier’s commitment to financial consumers and thank her for her leadership and support to ensure this important legislation passed the state House.” Shivers noted that failures of uninsured financial institutions have cost taxpayers in other states tens of millions of dollars. The recent transfers from the Pennsylvania Banking Fund left that account without sufficient resources to cover losses should an uninsured institution fail. The Banking Fund is financed entirely by assessments on state-chartered banks and financial institutions and also funds the majority of the operations of the Department of Banking and Securities (DoBS). Shivers also thanked state Banking and Securities Secretary Richard Vague and department staff for working with the PACB and a coalition of financial industry groups to develop the legislation. He also thanked state House Appropriations Chairman Stan Saylor (York County) and Majority Leader Kerry Benninghoff (Centre County) for their leadership securing state House passage. “Community bankers are proud that their assessments paid to the state Banking Fund ensure the integrity and security of Pennsylvania’s financial system by funding the DoBS,” Shivers continued.