synonymFederal Reserve Bank(Federal Reserve Bank) generally refers to the Federal Reserve Bank of the United States
The Federal Reserve Bank of the United States isFederal Reserve SystemPrivate regional financial institutions.According to the Federal Reserve Act of 1913, the United States is divided into 12 Federal Reserve Zones, each of which has a Federal Reserve Bank named after its city.It is the institution that implements monetary policy.The central bank of the United States is different from the central banks of other western countries in organizational formFederal Reserve Board12 regional Federal Reserve BanksFederal Open Market CommitteeandFederal Advisory CouncilExecution of components such asCentral Bank FunctionsFinancial system.Its functions are: issuing currency, acting as treasury agent, regulating currency circulation, supervising private banks and managing finance, organizing bill clearing, etc.[1]
According to the Articles of Association of the Federal Reserve Bank of the United States, its purpose is "to help eliminate the impact of inflation and deflation, and actively participate in creating an environment to promote high employment rates, stable prices, national economic growth and rising consumption levels." Another important responsibility of the Federal Reserve Bank of the United States is to promote the safe and efficient flow of funds within the banking system.So far, the Federal Reserve has greatly improved the efficiency of the payment system by encouraging technological innovation in areas such as electronic transfer.The earliest capital circulation was carried out by telegraphTraceabilityTo 1918.Eventually, the Federal Reserve will move towards paperless money orelectronic moneyOnce it is realized, its daily work duties - replacing old currency and confiscating counterfeit currency will no longer exist.
The US economy, which controls the world economy, is under the control of the US Federal Reserve Bank.
Institutional structure
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The Federal Reserve Bank of the United States includes 12 Federal Reserve Districts, each of which has a major Federal Reserve Bank. These banks have branches in other cities in the region.The three largest Federal Reserve Banks are New YorkChicagoandFederal Reserve Bank of San Francisco, they control togetherFederal Reserve SystemMore than 50% of assets (discount loans, securities and other assets).amongFederal Reserve Bank of New YorkIt owns about 1/4 of the assets of the whole system and is the most important Federal Reserve Bank.
Each Federal Reserve Bank is a quasi public institution (partly private, partly government owned), and its shareholders are private commercial banks, members of the Federal Reserve System in each district.These member banks purchase the shares of the regional Federal Reserve Bank (membership requirements), and the law stipulates that the annual dividends paid on these shares shall not exceed 6%.
Bank distribution
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12 Federal Reserve Banks and Their City Distribution:
First Federal Reserve-bostonFederal Reserve BankFederal Reserve Bank of Boston
Third Federal Reserve-PhiladelphiaFederal Reserve BankFederal Reserve Bank of Philadelphia
Fourth Federal Reserve-ClevelandFederal Reserve BankFederal Reserve Bank of Cleveland
Fifth Federal Reserve-RichmondFederal Reserve BankFederal Reserve Bank of Richmond
Sixth Federal Reserve-AtlantaFederal Reserve BankFederal Reserve Bank of Atlanta
Seventh Federal Reserve-ChicagoFederal Reserve BankFederal Reserve Bank of Chicago
The Eighth Federal Reserve-St. Louis Federal Reserve BankFederal Reserve Bank of St. Louis
The Ninth Federal Reserve-MinneapolisFederal Reserve Bankederal Reserve Bank of Minneapolis
The Tenth Federal Reserve-Kansas CityFederal Reserve BankFederal Reserve Bank of Kansas City
11th Federal Reserve-DalasFederal Reserve BankFederal Reserve Bank of Dallas
12th Federal Reserve-San FranciscoFederal Reserve BankFederal Reserve Bank of San Francisco
Distribution in the United States
The New York Federal Reserve is the savings area with the highest asset holdings, while the San Francisco Federal Reserve covers the widest range, followed byKansas Federal Reserve andMinneapolisFederal Reserve.Missouri is the only state governed by two Federal Reserve Banks (the Kansas Federal Reserve and the St. Louis Federal Reserve).In the twelfth Federal Reserve,SeattleThe branch is responsible forAlaskaArea, while Hawaii belongs toSan FranciscoDirectly managed by the Federal Reserve Bank.The Federal Reserve Bank of New York and the Federal Reserve Bank of San Francisco include the United States territories of non 51 states - Federal Reserve Bank of New York: U.SPuerto Rico、US Virgin Islands；Federal Reserve Bank of San Francisco:American samoa 、Guam, AmericanNorthern Mariana Islands（Saipan）。The last time the Board of Governors of the Federal Reserve System adjusted the boundaries of each reserve area was in February 1996.
Personnel composition
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The Federal Reserve is managed by a seven member board of presidents, all of whom are appointed by the president.The term of office of each member is fourteen years.The president committee has a chairman and a vice chairman, both of whom have four-year terms of office.Consisting of twelve membersFederal Open Market Committee（FOMC）It is an organization with important influence. The committee holds eight meetings every year to discuss the U.S. economy andmonetary policy。
The President and the First Vice President of the Federal Reserve Bank are nominated by the directors of the Board of DirectorsFederal Reserve BoardOnly after approval can he take office.
The directors of the Federal Reserve Banks of each reserve area can be divided into three categories: A, B and C.Three Class A directors elected by member banks are professional bankers;Three Class B directors are also elected by member banks and are celebrities from industry, labor, agriculture or consumer sectors;The three Class C directors are appointed by the Federal Reserve Board to represent the public interest and may not be officials, employees or shareholders of the bank.
Institutional functions
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basic function
The responsibilities of the 12 Federal Reserve Banks are as follows:
1. Check clearing;
2. Currency issuance;
3. Recovery of currency damaged in circulation;
4. Manage and issue discount loans to commercial banks in the region;
5. Evaluate the proposed merger and the application for bank expansion;
6. Act as an intermediary between the business community and the Federal Reserve System;
8. Collect data on the status of local businesses;
9. Organize professional economists of the Bank to engage in research on monetary policy operation.[2]
Regulation method
national debt
The Federal Reserve can curb inflation or stimulate deflation by buying and selling US government bonds.When it is bought, the money supply increases;When it is sold, the money supply decreases.These transactions happen almost every day.On the other hand, they can help the government determine how much money is available?Is it easy to borrow money?Is borrowing expensive?These will affect how many people will have jobs, whether prices will be stable, how many goods and services will be produced and sold, etc.
reserve fund
The Federal Reserve may require commercial banks to retain a certain percentage of funds as "reserves", which are either cash in the treasury or in the special account for "reserve settlement" of the Federal Reserve.Since banks cannot use reserves, the Federal Reserve can guide banks to lend more or less funds to the market by changing the required proportion of reserves.The more capital banks need to reserve, the less capital they can lend, the higher the interest rate of loans, and the greater the constraints on retail, construction and other industries that need loans.
discount rate
It is also the least used at present. The Federal Reserve will set a discount rate at which banks can borrow from the Federal Reserve.Banks can borrow from the "discount window" of the Federal Reserve, so that more funds can be used for lending.However, well run banks usually do not borrow from the discount window.In the past two decades, the influence of the Federal Reserve in this field has gradually declined.
