The Federal Reserve has about 4,700 member banks across the United States
The Federal Reserve System includes three types of banks: national banks (required to join), state banks that chose to join, and state banks that did not join but still follow Fed rules. National banks are chartered by the federal government and must be members. State-chartered banks can choose whether to join, and most large ones do. Even banks that are not members must follow Federal Reserve regulations if they have deposits insured by the FDIC.
Member banks range from small community banks with a few million dollars in assets to the largest financial institutions in the country. The Fed does not publish a single searchable list of all members, but you can find out whether a specific bank is a member by checking the FDIC's Bank Find tool or calling the bank directly and asking.
Membership means the bank holds a reserve account at the Federal Reserve, follows the Fed's lending rules, and pays into the Fed's insurance fund. In return, member banks can borrow from the Fed's discount window during emergencies and have access to the Fed's payment systems.
Key Takeaways
- All national banks are required to be Federal Reserve members; state-chartered banks choose whether to join.
- About 4,700 banks hold membership, but the number changes as banks merge or close.
- You can check whether a specific bank is a member using the FDIC's Bank Find tool or by contacting the bank.
- Member banks must maintain reserve accounts at the Fed and follow its lending and capital rules.
- Non-member banks that take FDIC deposits still follow many Federal Reserve regulations even though they are not members.
The difference between national banks and state-chartered members
A national bank is chartered by the U.S. Comptroller of the Currency and must join the Federal Reserve System. These banks have "National" or "N.A." in their name — for example, "First National Bank of Springfield." National banks are automatically members from the day they open.
A state-chartered member bank is chartered by its state and chose to join the Fed. These banks applied for membership and meet the Fed's standards. State-chartered member banks are less common than national banks because membership requires extra compliance work and costs. Many state banks stay outside the system and instead use the FDIC for deposit insurance without joining the Fed.
Both types of member banks hold reserve accounts at their regional Federal Reserve Bank and must follow the same lending rules, capital requirements, and examination standards. The main practical difference is that national banks had no choice, while state members made an active decision to join.
How to learn about a bank is a member
The fastest way to check is the FDIC's Bank Find tool, available at banks.fdic.gov. Search by bank name or location, and the results will show whether the bank is a member of the Federal Reserve System. The tool also shows the bank's charter type (national or state), its assets, and whether it is FDIC-insured.
If you cannot find the bank in the FDIC tool, call the bank's main number and ask the customer service line directly. They can tell you in seconds whether they are a Federal Reserve member. You can also ask to speak with someone in the compliance or operations department if the front desk is unsure.
The Federal Reserve itself does not maintain a public searchable directory of all member banks, but each of the 12 regional Federal Reserve Banks keeps a list of members in its district. If you know which region the bank is in, you can contact that regional Fed office and ask.
What membership requires banks to do
Member banks must maintain a reserve account at their regional Federal Reserve Bank. This account holds a portion of the bank's deposits as required by the Fed's reserve requirements. The Fed sets these requirements based on the size and type of deposits the bank holds. Banks use this reserve account to settle payments with other banks and to meet their daily cash needs.
Member banks must also follow the Fed's capital and lending rules. The Fed sets standards for how much capital a bank must hold relative to its loans and investments, and it limits how much a bank can lend to a single borrower. These rules are designed to keep banks from taking on too much risk. The Fed examines member banks regularly to make sure they follow these rules.
Member banks pay deposit insurance premiums to the FDIC and contribute to the Fed's operating costs. In return, they can borrow from the Fed's discount window during times of financial stress, and they have access to the Fed's payment systems, which allow them to move money between banks quickly and safely.
The 12 regional Federal Reserve Banks and their districts
The Federal Reserve System is divided into 12 districts, each with its own regional Federal Reserve Bank. Each bank oversees member banks in its region, handles payment processing, and manages the Fed's policies at the local level. The districts are:
| District | Regional Fed Bank | States Covered |
|---|---|---|
| 1 | Boston | Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, Vermont |
| 2 | New York | New Jersey, New York, Puerto Rico, U.S. Virgin Islands |
| 3 | Philadelphia | Delaware, New Jersey, Pennsylvania |
| 4 | Cleveland | Kentucky, Ohio, Pennsylvania, West Virginia |
| 5 | Richmond | District of Columbia, Maryland, North Carolina, South Carolina, Virginia, West Virginia |
| 6 | Atlanta | Alabama, Florida, Georgia, Louisiana, Mississippi, Tennessee |
| 7 | Chicago | Illinois, Indiana, Iowa, Michigan, Missouri, Wisconsin |
| 8 | St. Louis | Arkansas, Illinois, Indiana, Kentucky, Mississippi, Missouri, Tennessee |
| 9 | Minneapolis | Minnesota, Montana, North Dakota, South Dakota, Wisconsin |
| 10 | Kansas City | Colorado, Kansas, Nebraska, New Mexico, Oklahoma, Texas, Wyoming |
| 11 | Dallas | Louisiana, New Mexico, Texas |
| 12 | San Francisco | Alaska, Arizona, California, Guam, Hawaii, Idaho, Nevada, Oregon, Utah, Washington |
Each regional bank has its own president and board of directors. The presidents of all 12 regional banks sit on the Federal Reserve's policy-making committee, which meets eight times a year to set interest rates and decide on other monetary policy actions.
Banks that are not members but still follow Fed rules
Not all banks are Federal Reserve members, but most still follow Fed regulations. Any bank with FDIC deposit insurance — whether a member or not — must follow certain Federal Reserve rules about lending, capital, and risk management. The FDIC enforces these rules for non-member banks, while the Fed enforces them for member banks.
A bank can be FDIC-insured without being a Federal Reserve member. These banks typically use a different central bank or a state banking authority as their primary regulator. They still have to meet federal lending standards and capital requirements, but they do not hold a reserve account at the Fed and do not have direct access to the Fed's discount window.
The distinction matters mainly to the bank's operations and to regulators. For a customer, the key fact is whether the bank is FDIC-insured, not whether it is a Fed member. FDIC insurance protects your deposits up to $250,000 per account category regardless of whether the bank is a Fed member.
Why banks choose to join or stay out
National banks have no choice — they must join the Federal Reserve System. State-chartered banks, however, can decide. Large state banks often join because membership gives them access to the Fed's payment systems and the discount window, which are valuable during emergencies. Membership also signals to customers and regulators that the bank meets strict federal standards.
Smaller state banks sometimes stay out because membership requires extra compliance costs and paperwork. A small community bank might find it cheaper to use a different central bank or to work through a larger bank for payment processing. The trade-off is that they lose direct access to the Fed's emergency lending and payment systems.
The number of member banks has declined over the past 20 years as smaller banks have merged into larger ones and some state banks have chosen to leave the system. However, the largest banks in the country are all members, so the Fed's reach over the banking system remains very broad.
Frequently Asked Questions
Is my bank a member of the Federal Reserve?
Use the FDIC's Bank Find tool at banks.fdic.gov to search by name or location. The results will show whether the bank is a Federal Reserve member. If the tool does not have the bank listed, call the bank directly and ask.
Do I need to use a Federal Reserve member bank?
No. Any FDIC-insured bank protects your deposits the same way, whether it is a Fed member or not. Membership matters to the bank's operations and to regulators, not to your account safety or the services you receive.
What happens if a bank leaves the Federal Reserve?
A state-chartered bank can leave the Fed and still remain FDIC-insured. It will use a different regulator for oversight and will lose direct access to the Fed's payment systems and discount window. Customers' deposits remain insured and the bank continues to operate normally.
Can I borrow money from the Federal Reserve?
No, the Federal Reserve lends only to banks, not to individuals or businesses. If you need a loan, you borrow from a bank, which may itself borrow from the Fed if needed. The Fed's discount window is an emergency tool for banks, not a source of credit for the public.
Why does the Federal Reserve have 12 regional banks instead of one?
The 12-district system was designed to spread the Fed's work across the country and to give each region a voice in monetary policy. Each regional bank serves the banks and economy in its district, and the presidents of all 12 banks help set national policy together.