The Federal Reserve System, the central bank of the United States, conducts the nation's monetary policy, supervises and regulates banks, and provides a variety of financial services to the U. Located in Washington, D. The Board has about 1, employees. The members of the Board of Governors have a majority 7 out of 12 of the votes on the FOMC, the arm of the Fed that determines the nation's monetary policy. The Board has other monetary policy responsibilities, as well.
The Monetary Control Act of gives the Board the authority to set a reserve requirement of from 8 percent to 14 percent on transaction deposits deposits in checking and other accounts from which transfers can be made to third parties and of up to 9 percent on non-personal time deposits deposits not held by an individual or sole proprietorship.
In September , the reserve requirement was 10 percent on transaction deposits and 0 percent on time deposits. The Board also approves the discount rate—the interest rate at which Federal Reserve Banks extend short-term loans to depository institutions—that is recommended by the board of directors of each of the 12 Federal Reserve Banks.
Because the credit market is national, the rate approved by the Board has, for decades, been the same for all of the Reserve Banks. Other Responsibilities The Board supervises the activities of the Reserve Banks, approves the Reserve Banks' annual budgets, appoints three of the nine directors of each Reserve Bank the others are elected by the commercial banks in the Reserve Bank's District that are members of the Federal Reserve System , and approves the candidate for Bank president recommended by the directors of each Reserve Bank.
The Board of Governors also approves major Reserve Bank expenditures, such as those for the construction of buildings and the salaries of Reserve Bank presidents. The Board of Governors plays a major role in banking supervision, which entails the examination of depository institutions for safety and soundness and for compliance with laws and regulations.
The Board's supervisory responsibilities extend to all bank holding companies, state-chartered banks that are members of the Federal Reserve System, and Edge Act and agreement corporations through which U.
In addition, the Board also oversees the activities of the U. While the Board determines bank supervision policy, it delegates the task of conducting the examinations to the 12 Reserve Banks.
The Board also publishes a wealth of statistics and other information about the Federal Reserve and about the U. List of Partners vendors. EST: Randal K. Quarles submitted his resignation as a member of the Federal Reserve Board on Nov. A board of governors is a group of people that oversees or manages the running of an institution.
The U. In the financial world, the best-known board of governors is that of the Federal Reserve , the U. Members of the board of governors serve year terms, running on a staggered basis to ensure continuity. Legally, appointments to the board are to consist of a "fair representation of the financial, agricultural, industrial, and commercial interests and geographical divisions of the country.
The current Federal Reserve Board only has six members, with one vacancy. The presidents of five of the 12 regional reserve banks make up the remaining members of the FOMC. The Federal Reserve Board analyzes domestic and international economic developments, supervises and regulates the operations of the Federal Reserve Banks, has responsibility for America's payments system, and oversees and administers most consumer credit protection laws.
The board has authority over changes in reserve requirements, and it must approve any change in the discount rate initiated by a Federal Reserve Bank. Members of the board frequently testify before congressional committees on the economy, monetary policy , banking supervision and regulation, consumer credit protection, and financial markets.
Also, they are responsible for supervising the work of the regional Fed banks, including approving budgets and appointing directors. Non-profit organizations, government divisions, and higher academic institutions typically have a board of governors, rather than a board of directors , as their governing body. Corporations, as required by law, have a board of directors appointed to oversee financial decisions and business operations.
Often, when two or more boards exist within an entity, the board of governors reigns supreme as the decision-making authority.
A maximum of seven governors can serve on the Board of Governors of the Federal Reserve. The purpose of the staggered terms is to ensure stability and continuity over time. Powell, Richard H. Clarida, Randal K. Quarles, Michelle W.
Bowman, Lael Brainard, and Christopher J. The current chair of the Federal Reserve is Jerome H. A board of governors is a group of highly qualified individuals that are responsible for overseeing and managing an institution. Most institutions, from corporations to nonprofit organizations to media outlets to government bodies have a board of governors. The most well-known board of governors is that of the U. Federal Reserve Board.
Meetings held interstate are followed by a dinner with the local community. The Reserve Bank Board comprises nine members: three ex officio members — the Governor who is Chair , the Deputy Governor who is Deputy Chair and the Secretary to the Treasury — and six non-executive members, who are appointed by the Treasurer. The Governor and Deputy Governor are appointed for terms of up to seven years, and are eligible for reappointment. The non-executive members are appointed for terms of up to five years.
There is no limit on the number of terms a member may serve. A list of previous and current members of the Reserve Bank Board is also published on this website.
In terms of section 17 1 of the Reserve Bank Act , members of the Board may not be a director, officer or employee of an authorised deposit-taking institution for the purposes of the Banking Act Skip to content JavaScript is currently disabled.
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