Board of Governors of the Federal Reserve System: Difference between revisions
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''US banking''. | ''US banking''. | ||
(FRB). | |||
A board of seven members, appointed by the President of the US from the 12 Federal Reserve Banks, who formulate monetary policy and have regulatory and supervisory responsibilities for banking activities carried out in the US. | A board of seven members, appointed by the President of the US from the 12 Federal Reserve Banks, who formulate monetary policy and have regulatory and supervisory responsibilities for banking activities carried out in the US. | ||
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Commonly called the Federal Reserve Board. | Commonly called the Federal Reserve Board. | ||
==Monetary policy== | |||
For monetary policy, the Board is responsible for: | For monetary policy, the Board is responsible for: | ||
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In these three ways, the Federal Reserve influences the demand for and supply of balances ("reserves") banks hold at the Federal Reserve and so the price at which banks will lend reserves overnight to each other. This is called the federal funds rate though often abbreviated to the fed funds rate. | In these three ways, the Federal Reserve influences the demand for and supply of balances ("reserves") banks hold at the Federal Reserve and so the price at which banks will lend reserves overnight to each other. This is called the federal funds rate though often abbreviated to the fed funds rate. | ||
Under Board direction, the Division of | ==Bank supervision== | ||
Under Board direction, the Division of Supervision and Regulation is responsible for the oversight of US banking holding companies, foreign banking organizations operating in the US, and state-chartered member banks of the Federal Reserve System. | |||
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== See also == | == See also == | ||
* [[Bank for International Settlements]] | * [[Bank for International Settlements]] | ||
* [[Bank supervision]] | |||
* [[Federal]] | |||
* [[Federal Reserve Bank]] | * [[Federal Reserve Bank]] | ||
* [[Federal Reserve System]] | * [[Federal Reserve System]] | ||
* [[Federal Open Market Committee]] | * [[Federal Open Market Committee]] | ||
* [[Regulation D]] | * [[Regulation D]] | ||
[[Category:The_business_context]] | |||
Latest revision as of 00:37, 10 October 2023
US banking.
(FRB).
A board of seven members, appointed by the President of the US from the 12 Federal Reserve Banks, who formulate monetary policy and have regulatory and supervisory responsibilities for banking activities carried out in the US.
Commonly called the Federal Reserve Board.
Monetary policy
For monetary policy, the Board is responsible for:
- Determining the discount rate charged to commercial banks and other depository institutions on loans they receive from their regional Federal Reserve Bank's lending facility, the discount window.
- Setting reserve requirements - funds that a depository institution must hold in reserve against specified deposit liabilities in the form of vault cash or deposits with the Federal Reserve Banks.
- Open market operations, carried out by the Federal Open Market Committee.
In these three ways, the Federal Reserve influences the demand for and supply of balances ("reserves") banks hold at the Federal Reserve and so the price at which banks will lend reserves overnight to each other. This is called the federal funds rate though often abbreviated to the fed funds rate.
Bank supervision
Under Board direction, the Division of Supervision and Regulation is responsible for the oversight of US banking holding companies, foreign banking organizations operating in the US, and state-chartered member banks of the Federal Reserve System.
