Former Aiken Mayor Rick Osbon is leading an effort to offer the Palmetto State's cities and towns more financial flexibility.
Osbon is chairing the Palmetto Public Deposits Coalition.
The coalition seeks to change state regulations to allow cities and towns and other governmental entities to determine where they'd like to deposit their money.
"It is 2024, and public entities in South Carolina deserve to have a choice on where public money is deposited,” Osbon said in a news release.
The regulations prevent public entities from depositing their money with local credit unions like Aiken's SRP Federal Credit Union.
Sometimes credit unions can offer higher interest rates on deposits, lower loan rates and serve to keep money in the community, according to a news release.
"Local banks have been acquired by national banking institutions,' the coalition continued in the news release. "Consolidating much of the Palmetto State’s financial assets in out-of-state institutions and leaving communities underserved. A recent analysis of the share of all deposits found that as much as 77% of all deposits in South Carolina’s were held in out-of-state banks in 2023."
As banks have consolidated, local credit unions have stepped up.
Specifically, the number of bank branches decreased by 223 in 2023 and the number of credit union branches increased by 24.
"We believe South Carolina local governments and other public entities deserve the ability to choose the type of financial institution where taxpayer dollars are deposited," Osbon continued. "By creating competition and allowing credit unions to receive public deposits, South Carolina can improve access to essential financial services, drive better returns on taxpayer dollars, and benefit the residents of our state—especially in rural areas of South Carolina where credit unions are a lifeline."
For more information about the coalition, visit palmettopublicdeposits.com.
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