Federal Reserve Banks were established by Congress as the operating arms of the nation's central banking system. Many of the services provided by this network to depository institutions and the government are similar to services provided by banks and thrift institutions to business customers and individuals. Reserve Banks hold the cash reserves of depository institutions and make loans to them. They move currency and coin into and out of circulation, and collect and process millions of checks each day. They provide checking accounts for the Treasury, issue and redeem government securities, and act in other ways as fiscal agent for the U.S. government. They supervise and examine member banks for safety and soundness. The Reserve Banks also participate in the activity that is the primary responsibility of the Federal Reserve System, the setting of monetary policy.
For the purpose of carrying out these day-to-day operations of the Federal Reserve System, the nation has been divided into twelve Federal Reserve Districts, with Banks in Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, Dallas, and San Francisco. Twenty-five Branches of these Banks serve particular areas within each District.
How many Federal Reserve Banks are there, and where are they located?
There are twelve Federal Reserve Banks, one in each of the twelve Federal Reserve Districts.
- 1st District, Boston. Connecticut (excluding Fairfield County), Massachusetts, Maine, New Hampshire, Rhode Island, and Vermont
- 2nd District, New York. New York State, twelve counties in northern New Jersey, Fairfield County in Connecticut, Puerto Rico, and the Virgin Islands
- 3rd District, Philadelphia. Eastern Pennsylvania, southern New Jersey, and all of Delaware
- 4th District, Cleveland. Ohio, western Pennsylvania, eastern Kentucky, and the northern panhandle of West Virginia.
- 5th District, Richmond. Maryland, Virginia, North Carolina, South Carolina, and most of West Virginia
- 6th District, Atlanta. Alabama, Florida, Georgia, and parts of Louisiana, Mississippi, and Tennessee
- 7th District, Chicago. Iowa and most of Illinois, Indiana, Michigan, and Wisconsin
- 8th District, St. Louis. Arkansas and portions of six other states: Missouri, Mississippi, Tennessee, Kentucky, Indiana, and Illinois
- 9th District, Minneapolis. Minnesota, Montana, North Dakota, South Dakota, twenty-six counties in northwestern Wisconsin, and the Upper Peninsula of Michigan
- 10th District, Kansas City. Colorado, Kansas, Nebraska, Oklahoma, Wyoming, northern New Mexico, and Western Missouri
- 11th District, Dallas. Texas, northern Louisiana, and southern New Mexico
- 12th District, San Francisco. Nine western states--Alaska, Arizona, California, Hawaii, Idaho, Nevada, Oregon, Utah, and Washington--and American Samoa, Guam, and the Northern Mariana Islands
Who are the Federal Reserve Bank presidents?
Under the Federal Reserve Act, the president of a Federal Reserve Bank is the chief executive officer of the Bank. He or she is appointed by the individual Bank's board of directors, with the approval of the Board of Governors, for a term of five years.
The terms of the presidents of the twelve Reserve Banks run concurrently, ending on the last day of February in years ending with 1 and 6 (for example, 2001, 2006, and 2011). The appointment of a president who takes office after a term has begun ends with the end of that term. A Reserve Bank president may be reappointed after serving a full term or a partial term. Reserve Bank presidents are subject to mandatory retirement upon becoming 65 years of age. However, a president initially appointed after age 55 may, at the option of the Bank's board of directors, serve until attaining ten years of service in the office or age 70, whichever comes first.