Federal Reserve Bank

Written By
Paul Tracy
Updated November 4, 2020

What is the Federal Reserve Bank?

Federal Reserve Bank refers to any of the 12 branches of the Federal Reserve System overseeing the implementation of U.S. monetary policy

How Does the Federal Reserve Bank Work?

As the country's central banking authority, the Federal Reserve System operates in 12 designated regions (or districts) throughout the United States. Each district is overseen by a Federal Reserve branch bank in a centrally-located major city. These banks are identified by the city in which they are located (e.g. Federal Reserve Bank of New York or Federal Reserve Bank of Boston). These cities are: Atlanta, Boston, Chicago, Cleveland, Dallas, Kansas City, Minneapolis, New York, Philadelphia, Richmond, San Francisco, and St. Louis.

Each Federal Reserve Bank is responsible for lending money and providing financial services to member banks within its district, overseeing the implementation of the Federal Reserve's monetary policy, and monitoring economic activity by collecting and analyzing data for use by the Federal Reserve Board (FRB) as well as the Federal open Market Committee (FOMC).

Why Does the Federal Reserve Bank Matter?

The U.S. and its economy cover a very large geographical area. The Federal Reserve delegates its central banking authority to Federal Reserve Banks by district in order to facilitate its exercise over the monetary system through lending and policy implementation.

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