The Public Deposit Protection Commission (PDPC) is comprised of the State Treasurer, Governor, and Lieutenant Governor. The PDPC ensures public funds deposited in banks are protected if a financial institution becomes insolvent. Currently, 64 banks and 15 credit unions operating in Washington State are authorized to accept public deposits.
As of March 31, 2017, the amount of protected public funds on deposit at in-state banks was $5.7 billion. The Operations Division of the Office of the State Treasurer provides staff support to the PDPC through administering state laws and rules that ensure the security and safety of all state and local government public funds on deposit in qualified banks.
No funds on deposit in public depositaries have been lost since the Public Deposit Protection Act was created in 1969.
Under state law, the Commission can request a public depositary to furnish information on its financial condition, public deposits, and on the exact status of its net worth. The Commission is empowered to take any action deemed advisable for the protection of public funds and to establish procedures for collection or settlement of claims arising from the failure of a public depositary.
Reforms enacted since 2009 to modernize PDPC statutes, rules and procedures added important new safeguards for public funds that reduce the risk that a failed bank could trigger an assessment on other public depositaries to recover uninsured public deposits. These new rules, policies and practices strengthen protections on public deposits and reduce the liabilities for participating financial institutions by helping make the banking system stronger, public deposits safer, and promoting economic recovery.