The Federal Reserve System Has 12 Regional Banks Across the United States
There are 12 Federal Reserve Banks in the United States, each serving a specific geographic region. These banks are not commercial banks where you open a checking account. They are part of the central banking system and handle operations that affect the money supply, interest rates, and the stability of the financial system.
The Federal Reserve was created in 1913 and organized into 12 districts to spread authority across the country rather than concentrate it in one place. Each regional bank has its own president and board of directors, though they all operate under the oversight of the Federal Reserve Board of Governors in Washington, D.C.
Understanding which Federal Reserve Bank serves your region matters if you work in banking, finance, or need to understand how monetary policy decisions are made. The regional banks also publish economic research and data that affect lending rates and business decisions in their territories.
Key Takeaways
- The 12 Federal Reserve Banks are located in Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, Dallas, and San Francisco.
- Each regional bank serves a multi-state district and handles check clearing, currency distribution, and supervision of banks within its territory.
- The Federal Reserve Board of Governors in Washington, D.C. sets overall policy, but the regional banks implement decisions and gather economic data from their districts.
- The New York Federal Reserve Bank is the largest and handles most of the system's open market operations that influence interest rates nationwide.
The 12 Districts and Their Geographic Coverage
Each Federal Reserve Bank covers a specific district with multiple states. The First District, based in Boston, covers New England. The Second District, based in New York, covers New York, New Jersey, and Connecticut. The Third District, based in Philadelphia, covers Pennsylvania, New Jersey, and Delaware.
Moving west, the Fourth District (Cleveland) covers Ohio, Kentucky, Pennsylvania, and West Virginia. The Fifth District (Richmond) covers the Carolinas, Virginia, West Virginia, and Maryland. The Sixth District (Atlanta) covers the Southeast, including Florida, Georgia, and Alabama.
The Seventh District (Chicago) covers Illinois, Indiana, Iowa, Michigan, Missouri, and Wisconsin. The Eighth District (St. Louis) covers Arkansas, Illinois, Indiana, Kentucky, Mississippi, Missouri, and Tennessee. The Ninth District (Minneapolis) covers Minnesota, Montana, North Dakota, South Dakota, and Wisconsin.
The Tenth District (Kansas City) covers Colorado, Kansas, Nebraska, Oklahoma, and Wyoming. The Eleventh District (Dallas) covers Texas, Louisiana, and New Mexico. The Twelfth District (San Francisco) covers the western states, including California, Oregon, Washington, Alaska, and Hawaii.
What Regional Federal Reserve Banks Actually Do
The 12 regional banks perform several concrete functions that affect the banking system and the broader economy. They clear checks between banks, distribute currency and coins to commercial banks, and hold reserve balances for banks in their districts. When you deposit a check at your local bank, the Federal Reserve system processes it through one of these regional banks.
Each regional bank also supervises and examines banks within its territory to ensure they follow federal banking rules. They monitor lending practices, capital levels, and risk management at the institutions they oversee. This supervision role is shared with other regulators like the Office of the Comptroller of the Currency, but the regional banks are a key part of the oversight structure.
The regional banks gather economic data from their districts and publish reports on employment, inflation, lending activity, and business conditions. This information feeds into decisions made by the Federal Reserve Board about interest rates and the money supply. The regional bank presidents also participate in meetings where monetary policy is set.
How the New York Federal Reserve Bank Differs From the Others
The Federal Reserve Bank of New York holds a special role within the system. It handles the Federal Reserve's open market operations, which are the day-to-day buying and selling of government securities that influence interest rates across the economy. When the Federal Reserve Board decides to raise or lower rates, the New York bank executes those decisions in the financial markets.
The New York Fed also serves as the banker for the U.S. Treasury Department and holds gold reserves for foreign governments and central banks. It manages the discount window, where banks can borrow directly from the Federal Reserve during financial stress. Because of these responsibilities, the New York Fed president has outsized influence in Federal Reserve policy decisions compared to the other regional bank presidents.
Who Leads Each Regional Federal Reserve Bank
Each of the 12 regional banks has a president who serves as its chief executive. These presidents are appointed by the board of directors of their respective banks, subject to approval by the Federal Reserve Board of Governors. Presidents typically come from banking, economics, or finance backgrounds and serve five-year terms.
The presidents of the regional banks make up part of the Federal Open Market Committee (FOMC), which meets eight times per year to set monetary policy. Five of the 12 regional bank presidents vote on policy at any given meeting, with the New York president always voting and the others rotating. This structure gives the regional banks a direct voice in decisions that affect interest rates and the money supply.
How to Find Information About Your Regional Federal Reserve Bank
Each of the 12 Federal Reserve Banks maintains a public website with information about its district, economic research, and banking services. You can find your regional bank by looking up which district your state falls into. The main Federal Reserve website at federalreserve.gov lists all 12 banks and provides links to each one.
The regional banks publish economic reports, surveys of business conditions, and research papers on topics like employment, inflation, and financial stability. Many of these publications are free and available online. If you work in banking or finance, your institution likely has direct contact with your regional Federal Reserve Bank for operational matters like check clearing and reserve account management.
Frequently Asked Questions
Can I open an account at a Federal Reserve Bank?
No. Federal Reserve Banks do not offer accounts to individuals or most businesses. They provide banking services only to commercial banks, the U.S. Treasury, and foreign central banks. If you need a checking or savings account, you use a commercial bank, which then maintains its own account at the Federal Reserve.
Why are there 12 Federal Reserve Banks instead of one?
The system was designed to distribute power and gather economic information from different regions of the country. Having 12 banks spread across the nation allows the Federal Reserve to monitor local economic conditions, supervise banks in each district, and make decisions that reflect the needs of different parts of the country rather than just the financial centers.
Does the Federal Reserve Bank control interest rates at my bank?
The Federal Reserve influences interest rates indirectly through monetary policy, but your bank sets its own rates based on market conditions and its own costs. When the Federal Reserve raises or lowers its benchmark rate, commercial banks typically adjust their rates in response, but the exact change depends on competition and other factors in your local market.
What is the difference between the Federal Reserve and a regional Federal Reserve Bank?
The Federal Reserve is the entire central banking system, including the Board of Governors in Washington and the 12 regional banks. The regional banks are the operating arms of the system, handling day-to-day functions like check clearing, currency distribution, and bank supervision within their districts. The Board of Governors sets overall policy that all 12 banks follow.