Any bank or other
incorporated banking institution engaged in similar
business may become a member of the Federal Reserve
System. National banks are required by law to be
members. State-chartered banks may join if they
meet certain requirements.
Q:
What factors are
considered in applications for membership?
A:
Financial condition
General character of management
Capital adequacy
Convenience and needs of the community
Q:
Is there an application
fee associated with becoming a member?
A:
There is no application
fee.
Q:
Is an examination
required prior to my application being approved?
A:
Not always. The need
for an on-site examination depends on each bank’s
individual circumstances.
Q:
Does my application
require public notice?
A:
No. This requirement
was eliminated in 1998.
Q:
Are there any
conditions of membership?
A:
Member banks are
required to purchase Federal Reserve stock in accordance
with Regulation I (12 CFR 209) and are expected
to follow the general safety and soundness guidelines
found in Regulation H (12 CFR 208).
Q:
How long does
it take for my application to be processed?
A:
As little as 15 days
for well-capitalized institutions with CAMELS and
compliance ratings of 1 or 2, a satisfactory CRA
rating and no major unresolved supervisory issues.
Q:
Does Federal
Reserve membership convey FDIC insurance?
A:
No. A separate application
needs to be filed with the FDIC.
Q:
Is there a fee
for examinations?
A:
The Federal Reserve
does not charge a fee for its examinations.
Q:
Does a national
bank converting to a state charter need to reapply
for Federal Reserve membership?
A:
Yes. Federal Reserve
membership does not transfer automatically. Stock
in the Federal Reserve will also have to be reissued
in the name of the new bank.
Q:
Who can I contact
for more information?
A:
Contact
Michael Watson, Vice President
Regional and Community Banking
Michael.Watson@bos.frb.org
617-973-3913 or
Maureen Savage, Vice President
Credit, Risk Management, Statistics, and Analytics
Maureen.Savage@bos.frb.org
617-973-3467
