Press Kit
FAQs
Below you will find the answers to the frequently asked questions our media relations specialists usually answer.
Structure and Functions of the Fed
- What is the Board of Governors of the Federal Reserve System? Who are the current board members?
- What are the Federal Reserve banks?
- Which states compose the Eighth Federal Reserve District based in St. Louis? Where are the branches?
- Does the St. Louis Fed have a board of directors? What do the board members do? How are board members chosen? Who are the current board members?
- What role does the St. Louis Fed play in the economy/payment system?
Bank Supervision and Regulation
- Which banks does the Federal Reserve System supervise and regulate? What is a bank holding company?
- Where can I find information on bank mergers and acquisitions or enforcement actions against banks?
- Where can I find a complete list of Federal Reserve regulations?
- What is the Community Reinvestment Act and what does a Reserve bank's community affairs department do?
- Who regulates banks? Where can I find out who regulates a certain bank?
Payment System
- What is the Federal Reserve's role in the payment system?
- Where can I find information on electronic payments?
Consumer Information
- Who enforces consumer protection regulations? Which types of consumer protections does the Federal Reserve monitor?
- Where can I find information on consumer debt levels?
- Where can I find information on debit or credit cards and the regulations that govern them?
- Which consumer privacy laws does the Federal Reserve enforce?
Other Resources
- I'm a reporter and have questions about the Federal Reserve Bank of St. Louis. Whom should I contact?
- Where can I find additional information about the Federal Reserve?
Structure and Functions of the Fed
What is the Board of Governors of the Federal Reserve System? Who are the current board members?
The Federal Reserve System is composed basically of a central, governmental agency—the Board of Governors in Washington, D.C.—and 12 regional Federal Reserve banks.
The seven members of the Board of Governors are nominated by the president of the United States and confirmed by the Senate. A full term is 14 years. The appointments are staggered so that one term begins every two years, on Feb. 1 of each even-numbered year. A member who serves a full term may not be reappointed; however, a member who is appointed and confirmed to serve the unexpired portion of a term may later be reappointed to a full term. All terms end on their statutory date regardless of the date on which the member is sworn into office.
The chairman and the vice chairman of the Board are named by the president from among the members and are confirmed by the Senate. They serve four-year terms. A member's term on the Board is not affected by his or her status as chairman or vice chairman.
Current members of the Board of Governors
What are the Federal Reserve banks?
Each of the 12 Federal Reserve banks is an operating arm of
the Federal Reserve System. These banks have a total of 25 branches.
The banks and branches carry out various functions, including
operating a nationwide payment system, distributing the nation's
currency and coin, supervising and regulating member banks and
bank holding companies, and serving as the banker for the U.S.
Treasury. The Federal Reserve banks are located in Boston, New
York City, Philadelphia, Cleveland, Richmond, Atlanta, Chicago,
St. Louis, Minneapolis, Kansas City, Dallas and San Francisco. (See a listing
and map of the districts
)
Which states compose the Eighth Federal Reserve District, based in St. Louis? Where are the branches?
The Federal Reserve Bank of St. Louis territory covers the Eighth Federal Reserve District, which includes all of Arkansas, eastern Missouri, southern Indiana, southern Illinois, western Kentucky, western Tennessee and northern Mississippi. Branch offices are located in Little Rock, Louisville and Memphis.
Does the St. Louis Fed have a board of directors? What do the board members do? How are your board members chosen? Who are the current board members?
Each Reserve bank has a board of directors. Reserve bank directors, under Board of Governors' supervision, oversee their bank's operations and appoint the bank's president and first vice president. Of the nine directors, six—three Class A, representing the banking industry, and three Class B—are elected by member banks, including all nationally chartered banks and state-chartered banks that meet certain requirements. Three Class C directors, including the chairman and deputy chairman, are appointed by the Board of Governors. Class B and C directors represent agriculture, commerce, industry, labor and services in the Federal Reserve District. They cannot be officers, directors or employees of a bank. Class C directors cannot be bank stockholders.
Boards of branch banks have five or seven directors, most of whom are appointed by head-office directors and the rest by the Board of Governors.
Boards of directors of the Reserve banks and branches provide
the Federal Reserve System with a wealth of information on economic
conditions in virtually every corner of the nation. This information
is used by the Federal Open Market Committee (FOMC) and the Board
of Governors in reaching major decisions about monetary policy.
Information from directors and other sources gathered by the Reserve
banks is also shared with the public in a special report—informally
called the Beige
Book— which is issued about two weeks before each
meeting of the FOMC. In addition, every two weeks, the board of
each bank must recommend to the Board of Governors a discount
rate for each bank. A recommendation for a change cannot take
effect unless the Board of Governors approves it.
Current list of the Federal Reserve Bank of St. Louis' board of directors.
What role does the St. Louis Fed play in the economy/payment system?
The Federal Reserve Bank of St. Louis is one of 12 regional Reserve banks in the United States that, together with the Board of Governors in Washington, D.C., make up the Federal Reserve System—the nation's central bank. Since its establishment by an act of Congress in 1913, the Federal Reserve System's primary goal has been to foster a sound financial system and a healthy economy. To advance this goal, the St. Louis Fed and the other regional Reserve banks help formulate monetary policy, supervise and regulate banks and bank holding companies, and provide financial services to depository institutions and the federal government.
Bank Supervision and Regulation
Which banks does the Federal Reserve System supervise and regulate? What is a bank holding company?
The Fed has primary supervisory responsibility for two major categories of banking organizations: state-chartered banks and their subsidiaries that are members of the Federal Reserve System, and bank holding companies, including financial holding companies and any of their nonbank subsidiaries. As a part of the Gramm-Leach-Bliley Act, the Fed's role as an "umbrella" supervisor of bank holding companies was expanded to include financial holding companies and their nonbank subsidiaries.
A bank holding company is simply a company that may own many
banks. A bank holding company can choose to obtain a financial
holding company status so that it may engage in a broad array
of financially related activities.
More about the Fed's supervisory
responsibilities .
Where can I find information on bank mergers and acquisitions or enforcement actions against banks?
The Federal Reserve acts or makes recommendations with respect
to notices by individuals seeking to acquire controlling interests
in state member banks and bank holding companies. (Read more about bank acquisitions.)
Part of the Federal Reserve's role is to respond appropriately
when it determines that a state member bank or bank holding company
has problems that affect the institution's safety and soundness
or is not in compliance with laws and regulations. In some cases,
the Fed may need to take an informal supervisory action or a formal
enforcement action. The Fed's actions are designed to address
concerns about a bank's operations and to encourage banks
and their affiliated parties to follow the law. (Read more about enforcement
actions. )
Where can I find a complete list of Federal Reserve regulations?
Congress has assigned to the Board of Governors responsibility
for implementing certain laws pertaining to a wide range of
banking and financial activities. The Board implements those
laws in part through its regulations, which are codified in
title 12, chapter II, of the Code of Federal Regulations (12
CFR 201 et seq.). (See a list of
Federal Reserve regulations)
What is the Community Reinvestment Act, and what does a Reserve bank's Community Development department do?
In accordance with the Community Reinvestment Act (CRA) of 1977, the Federal Reserve encourages banks to work with community organizations to promote local economic development. In the bank examination process, the Federal Reserve reviews a bank's efforts to meet the credit needs of its entire community, including low- and moderate-income neighborhoods. For example, the Federal Reserve looks at the extent to which a bank has programs that contribute to the building of affordable housing and to other aspects of community development. Banks are rated separately for compliance with the CRA, and the Federal Reserve takes an institution's performance under the CRA into account when deciding whether to approve an application for acquisition or merger or for the formation of a bank holding company. The public may protest the approval of an application on the basis of the institution's record in community reinvestment.
Each Reserve bank has on its staff a community affairs officer who is familiar with the credit needs in the communities served by the institutions in the bank's district. The officer's responsibilities include fostering communication among banking institutions, government agencies and community groups. Through newsletters and other publications, seminars, workshops, and conferences, the Federal Reserve provides information to banks and bank holding companies about economic initiatives in the private sector, community development finance, public-private partnerships, and federal and state development programs. Staff members also work directly with individual bankers and community development representatives to promote community lending.
Read more about the St. Louis Fed's Community Development department.
Who regulates banks? Where can I find out who regulates a certain bank?
The Federal Reserve is one of three federal regulatory agencies— the other two being the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corp. These agencies, along with state banking agencies, oversee the financial services industry.
The Fed has primary supervisory responsibility for two major categories of banking organizations: state-chartered banks and their subsidiaries that are members of the Federal Reserve System and their subsidiaries, and bank holding companies, including financial holding companies and any of their nonbank subsidiaries. As a part of the Gramm-Leach-Bliley Act, the Fed's role as an "umbrella" supervisor of bank holding companies was expanded to include financial holding companies and their nonbank subsidiaries. A bank holding company is simply a company that may own many banks. A bank holding company can choose to obtain a financial holding company status so that it may engage in a broad array of financially related activities.
To determine a depository or financial institution's regulator,
go to the Federal Reserve System's National
Information Center web site.
Payment System
What is the Federal Reserve's role in the payment system?
The Federal Reserve provides services to help the nation's payment system run efficiently. Through the Federal Reserve banks' cash services operations, the Federal Reserve distributes currency and coin to financial institutions. The Fed's retail banking services consist primarily of check clearing operations and electronic banking services. Besides clearing paper checks, the Fed sends electronic check files to thousands of financial institutions each day and is on the cutting edge of the newest technology in the industry. The Fed also offers a service called the automated clearinghouse, commonly known as the ACH, which is used most often to process low-dollar, preauthorized, recurring, retail transactions such as direct deposit of payroll and government benefits, payment of mortgage loans, insurance premiums and utility bills, and corporate cash management.
Besides these retail services, the Fed also offers wholesale services— those that are mostly for business-to-business transactions. This activity is conducted using the Fed's electronic network— called FedWire®. In addition to this network, the New York Fed handles all foreign electronic transfers, which can be sent anywhere in the world. Finally, as the government's fiscal agent, the Fed provides a variety of services to the U.S. Treasury as well as to other federal and federally sponsored agencies.
More about the Federal
Reserve's role in the payment system (PDF 135 KB)
Where can I find information on electronic payments?
Electronic payments of all kinds are used as a safe, reliable
and convenient way to conduct business. For example, direct
deposit is used for payroll, travel and expense reimbursements,
annuities and pensions, dividends, and government payments such
as Social Security and veterans benefits. Other types of electronic
payments are frequently used for bill payments, retail purchases,
Internet purchases, corporate payments and Treasury management,
and for the provision of food stamps and other government cash
assistance. To learn more about these types of payments, go
to the Federal Reserve
Financial Services or the National
Automated Clearinghouse Association
web sites.
Consumer Information
Who enforces consumer protection regulations? Which types of consumer protections does the Federal Reserve monitor?
Congress has assigned the Federal Reserve responsibility for implementing certain consumer protection laws. These laws cover almost all financial transactions involving consumers, such as those involving ATMs, credit cards, checking and savings accounts, and loans.
List of the specific consumer
regulations the Federal Reserve enforces.
Where can I find information on consumer debt levels?
The Board of Governors' web site offers a monthly listing of
outstanding consumer
credit levels (consumer debt).
Where can I find information on debit or credit cards and the regulations that govern them?
The Federal Reserve produces several publications that provide
information about debit and credit cards. In addition, the Board
offers guidance
on shopping for a credit card and understanding the information
in credit card solicitations and applications.
The Board's site also includes information
about shopping for or obtaining credit, maintaining credit,
disputing unfair credit transactions and resolving billing disputes.
The Federal
Trade Commission's web site
also has information about
credit cards.
Three Federal Reserve Bank regulations relate to credit. They
are Regulation B, Equal Credit Opportunity; Regulation Z, Truth
in Lending; and Regulation AA, Unfair or Deceptive Acts or Practices.
(Get more information about these regulations.)
Which consumer privacy laws does the Federal Reserve enforce?
Regulation P, Privacy of Consumer Financial Information, implements
the provisions of the Gramm-Leach-Bliley Act that prohibit a
financial institution from disclosing nonpublic personal information
to third parties that are not affiliated with the financial
institution.
(Get more information about Regulation
P.)
Other Resources
I'm a reporter and have questions about the Federal Reserve Bank of St. Louis. Whom should I contact?
See contact information at right.
Where can I find additional information about the Federal Reserve?
- Federal Reserve public web sites
- In Plain English (Making Sense of the Federal Reserve)
- The Structure of the Federal Reserve
- Purposes
and Functions