As Rural Bank Branches Close, Laurens County Official Supports Expanded Financial Options
March 18, 2026
As bank branches continue to close across rural parts of South Carolina, local leaders are urging lawmakers to pass legislation that would give cities and counties more flexibility in where they deposit public funds.
Among those supporting the proposal is Laurens County Council Vice Chairman Matthew Brownlee, who joined local officials from across the state in signing a letter encouraging passage of the South Carolina Financial Freedom Act (H.3221 / S.60).
The legislation would allow cities, counties, school districts, and other public entities to deposit funds in qualified credit unions, rather than being limited primarily to traditional commercial banks under current law. Supporters say the change would introduce more competition and provide local governments with greater flexibility in managing taxpayer dollars.
Local Leader Voices Support
“For rural counties like Laurens, having strong and accessible financial partners matters,” Brownlee said. “Giving local governments the ability to choose the financial institution that best serves their needs simply makes sense. More options can mean better service and better returns on public funds, which ultimately benefits our communities.”
A Growing Challenge for Rural Communities
The issue has become more pressing as banking access has declined in many smaller communities.
In nearby Whitmire, for example, the closure of the town’s local bank branch left municipal staff with few nearby options for routine deposits and financial transactions. Town employees sometimes faced nearly an hour-long round trip simply to handle basic banking tasks.
When a credit union later opened a facility in the community, local leaders hoped it would provide a convenient solution. However, they soon discovered that state law prevented the town from depositing public funds there. Lawmakers ultimately approved a budget proviso allowing Whitmire to bank with the credit union — a change expected to reduce travel time for staff and improve financial operations for the town.
Expanding Financial Options
Under current state law, public entities are generally required to deposit funds with commercial banks, even though credit unions are authorized to accept public deposits. Advocates say expanding eligibility to include regulated, community-based credit unions would give local governments more options and encourage competition among financial institutions.
More than 30 local government leaders representing communities across 16 South Carolina counties have signed onto a joint letter urging the General Assembly to advance the legislation. Signatories include county council members, mayors, municipal officials, and other local leaders from across the state.
Supporters say expanding financial options could help local governments reduce banking fees, improve interest earnings on public funds, and potentially lower borrowing costs. Those savings could translate into additional resources for infrastructure, public safety, and economic development efforts in communities across South Carolina.
Organizations representing local governments, including the South Carolina Association of Counties and the Municipal Association of South Carolina, have also expressed support for expanding financial choice for public deposits.
Looking Ahead
As lawmakers continue to debate the proposal during the current legislative session, supporters say the goal is simple: giving local leaders the tools they need to manage taxpayer funds in the most efficient and locally beneficial way possible.
