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PACB Public Policy Priorities
Good public policy helps community banks serve their customers better. That is the measure we bring to every issue.
Good public policy helps community banks serve their customers better. That is the measure we bring to every issue.
Click on the links below to view current legislation and why it matters!
Protecting Older Pennsylvanians from Financial Exploitation
Community bankers are often on the front lines when an older customer is being targeted by a scammer, caregiver or even a family member. A banker who knows that customer may recognize an unusual withdrawal, suspicious wire or sudden change in account activity before anyone else does.
PACB is working to give financial institutions appropriate tools to act when they reasonably suspect financial exploitation—including the ability to report suspected abuse, communicate with authorized contacts and authorities, and temporarily hold or refuse suspicious transactions.
Why it matters: When seconds can determine whether a lifetime of savings disappears, a trusted banker should have the tools to help protect the customer.
Senate Bill 738 would address prevention of financial exploitation, and the current proposal includes provisions dealing with reporting, transaction holds and notifications.
PACB is working to give financial institutions appropriate tools to act when they reasonably suspect financial exploitation—including the ability to report suspected abuse, communicate with authorized contacts and authorities, and temporarily hold or refuse suspicious transactions.
Why it matters: When seconds can determine whether a lifetime of savings disappears, a trusted banker should have the tools to help protect the customer.
Senate Bill 738 would address prevention of financial exploitation, and the current proposal includes provisions dealing with reporting, transaction holds and notifications.
Protecting Local Deposits and Lending in the Age of Stablecoins
Community banks support responsible innovation. New technologies can make financial services faster, safer and more convenient.
PACB also believes innovation should strengthen—not drain—the financial system that finances Pennsylvania's hometowns.
Community banks put deposits to work locally, financing homeownership, small businesses, agriculture and economic development. PACB is engaging policymakers on stablecoin legislation to encourage strong consumer protections, appropriate regulatory oversight and a level competitive playing field between banks and nonbank financial companies.
Pennsylvania House Bill 2647 would establish a state stablecoin licensing framework and was referred to the House Commerce Committee in June 2026.
PACB has developed detailed recommendations concerning consumer redemption rights, reserve requirements, audits, supervision, cybersecurity, data privacy and prohibiting interest or yield on payment stablecoins. The PACB federal agenda likewise identifies prohibiting interest, yield and rewards on payment stablecoins as a priority.
Why it matters: Deposits are not simply numbers on a bank's balance sheet. They become mortgages, small-business loans, farm credit and investments in local communities. Financial innovation should expand opportunity without unnecessarily reducing the resources available for local lending.
PACB also believes innovation should strengthen—not drain—the financial system that finances Pennsylvania's hometowns.
Community banks put deposits to work locally, financing homeownership, small businesses, agriculture and economic development. PACB is engaging policymakers on stablecoin legislation to encourage strong consumer protections, appropriate regulatory oversight and a level competitive playing field between banks and nonbank financial companies.
Pennsylvania House Bill 2647 would establish a state stablecoin licensing framework and was referred to the House Commerce Committee in June 2026.
PACB has developed detailed recommendations concerning consumer redemption rights, reserve requirements, audits, supervision, cybersecurity, data privacy and prohibiting interest or yield on payment stablecoins. The PACB federal agenda likewise identifies prohibiting interest, yield and rewards on payment stablecoins as a priority.
Why it matters: Deposits are not simply numbers on a bank's balance sheet. They become mortgages, small-business loans, farm credit and investments in local communities. Financial innovation should expand opportunity without unnecessarily reducing the resources available for local lending.
Protecting a Safe, Reliable Electronic Payments System
Pennsylvanians expect to swipe, tap or insert a debit or credit card and have the transaction work quickly and securely.
PACB advocates for public policies that preserve a reliable electronic payments system while recognizing the costs of fraud prevention, cybersecurity, transaction processing and the infrastructure required to move money safely.
Current Pennsylvania proposals would restrict certain payment-card network fee practices. Senate Bill 1202, for example, was introduced in February 2026 and remains before the Senate Finance Committee. PACB's legislative materials identify both SB 1202 and HB 2090 as current interchange priorities.
Why it matters: Changes to the payment system can affect consumers, community banks and small businesses. PACB's goal is a competitive, secure and dependable payments system that works for everyone who relies upon it.
PACB advocates for public policies that preserve a reliable electronic payments system while recognizing the costs of fraud prevention, cybersecurity, transaction processing and the infrastructure required to move money safely.
Current Pennsylvania proposals would restrict certain payment-card network fee practices. Senate Bill 1202, for example, was introduced in February 2026 and remains before the Senate Finance Committee. PACB's legislative materials identify both SB 1202 and HB 2090 as current interchange priorities.
Why it matters: Changes to the payment system can affect consumers, community banks and small businesses. PACB's goal is a competitive, secure and dependable payments system that works for everyone who relies upon it.
Keeping Community Banks Strong, Competitive and Local
Community banks operate under extensive state and federal regulation because customers deserve a safe and sound financial system. PACB advocates for regulation that is also proportionate to an institution's size, complexity and risk.
A regulation designed for a trillion-dollar financial institution can impose very different costs when applied to a locally owned community bank. PACB supports policies that preserve strong supervision and consumer protection while allowing community bankers to spend more time and resources serving customers and investing in their communities.
Recent federal reforms have addressed issues such as examination cycles, reciprocal and custodial deposits, de novo bank formation and rural financial institutions. PACB's 2026 federal agenda continues that work through priorities including tailored regulation, fair examination reviews, capital requirements and support for new community-bank formation.
Why it matters: A regulatory system that recognizes differences in size and risk helps preserve diverse financial choices for consumers and keeps locally focused banks competing in communities across Pennsylvania.
A regulation designed for a trillion-dollar financial institution can impose very different costs when applied to a locally owned community bank. PACB supports policies that preserve strong supervision and consumer protection while allowing community bankers to spend more time and resources serving customers and investing in their communities.
Recent federal reforms have addressed issues such as examination cycles, reciprocal and custodial deposits, de novo bank formation and rural financial institutions. PACB's 2026 federal agenda continues that work through priorities including tailored regulation, fair examination reviews, capital requirements and support for new community-bank formation.
Why it matters: A regulatory system that recognizes differences in size and risk helps preserve diverse financial choices for consumers and keeps locally focused banks competing in communities across Pennsylvania.
Strengthening Mutual Banks and the Communities They Serve
Pennsylvania's mutual banks occupy a special place in community banking. Without outside stockholders, mutual institutions are structured around their depositors and the communities they serve.
PACB supports modernizing Pennsylvania's Mutual Thrift Institutions Tax to help these institutions retain more capital for lending, growth and investment in their communities.
House Bill 788 would reduce the Mutual Thrift Institutions Tax. The House Finance Committee approved the measure unanimously, 26-0, in February 2026, and the bill remains in the House.
PACB bankers also provided testimony and real-world perspectives as the proposal advanced through committee.
Why it matters: Capital retained by a community bank strengthens its capacity to lend, invest, grow and serve its customers.
PACB supports modernizing Pennsylvania's Mutual Thrift Institutions Tax to help these institutions retain more capital for lending, growth and investment in their communities.
House Bill 788 would reduce the Mutual Thrift Institutions Tax. The House Finance Committee approved the measure unanimously, 26-0, in February 2026, and the bill remains in the House.
PACB bankers also provided testimony and real-world perspectives as the proposal advanced through committee.
Why it matters: Capital retained by a community bank strengthens its capacity to lend, invest, grow and serve its customers.
Protecting Consumer Choice and Relationship Banking
Community banking works because bankers know their customers.
PACB supports public policies that preserve the ability of banks and customers to choose financial products and services that meet individual needs—with clear disclosure, strong consumer protections and appropriate regulatory oversight.
That principle applies to issues ranging from deposit services and overdraft protection to lending and payments. PACB's prior advocacy on the CFPB overdraft rule, for example, argued that community banks provide tailored services and that policy changes could affect the availability and cost of checking and overdraft options.
Why it matters: Consumers benefit from choice. Public policy should protect customers while preserving the ability of community banks to design products and services around the people and communities they know.
PACB supports public policies that preserve the ability of banks and customers to choose financial products and services that meet individual needs—with clear disclosure, strong consumer protections and appropriate regulatory oversight.
That principle applies to issues ranging from deposit services and overdraft protection to lending and payments. PACB's prior advocacy on the CFPB overdraft rule, for example, argued that community banks provide tailored services and that policy changes could affect the availability and cost of checking and overdraft options.
Why it matters: Consumers benefit from choice. Public policy should protect customers while preserving the ability of community banks to design products and services around the people and communities they know.
Advocacy Powered by Community Bankers
PACB's most effective advocates are the bankers who serve Pennsylvania communities every day.
They understand how a regulation affects a small-business loan. They see when fraud threatens an older customer's savings. They know what it takes to finance a first home, keep a family farm operating or help an entrepreneur turn an idea into a business.
PACB brings those experiences to Harrisburg and Washington.
Our bankers testify before legislative committees, meet with elected officials and regulators, participate in advocacy days and congressional visits, and help policymakers understand how decisions made in government affect people back home.
We give community banking a voice because every community bank represents something larger: the customers, employees, businesses, farmers, families and communities it serves.
PACB's most effective advocates are the bankers who serve Pennsylvania communities every day.
They understand how a regulation affects a small-business loan. They see when fraud threatens an older customer's savings. They know what it takes to finance a first home, keep a family farm operating or help an entrepreneur turn an idea into a business.
PACB brings those experiences to Harrisburg and Washington.
Our bankers testify before legislative committees, meet with elected officials and regulators, participate in advocacy days and congressional visits, and help policymakers understand how decisions made in government affect people back home.
We give community banking a voice because every community bank represents something larger: the customers, employees, businesses, farmers, families and communities it serves.
Your Membership Strengthens Our Voice
When PACB meets with a legislator or regulator, one question carries enormous weight: Who do you represent?
Every bank that belongs to PACB strengthens our answer.
Membership gives PACB greater credibility and a stronger voice in public-policy conversations. In return, we work to turn that collective strength into public-policy results that help community banks better serve their customers.
That is advocacy.
That is the power of membership.
And that is PACB's mission in action.
When PACB meets with a legislator or regulator, one question carries enormous weight: Who do you represent?
Every bank that belongs to PACB strengthens our answer.
Membership gives PACB greater credibility and a stronger voice in public-policy conversations. In return, we work to turn that collective strength into public-policy results that help community banks better serve their customers.
That is advocacy.
That is the power of membership.
And that is PACB's mission in action.
Get Involved
Public policy is stronger when policymakers hear directly from the people affected by it.
For more information on federal priorities, please visit https://www.icba.org/advocacy
Public policy is stronger when policymakers hear directly from the people affected by it.
- Community bankers: Add your experience and your voice to PACB's advocacy efforts.
- Policymakers and the public: Talk with us about how community banks serve Pennsylvania and how public policy can help them do even more.
- Together, we can build a stronger environment for community banks, their customers, and the communities they serve.
For more information on federal priorities, please visit https://www.icba.org/advocacy
Our mission:
To empower community banks to positively
impact the communities they serve.
To empower community banks to positively
impact the communities they serve.
