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Information > Financial Terms > This page Federal Reserve Bank Any one of the 12 Federal Reserve banks created under the FEDERAL RESERVE ACT and operating in one of the 12 FEDERAL RESERVE DISTRICTS. Federal Reserve banks are also known as "central," "reserve," and "regional" banks. Section 4 of the Federal Reserve Act outlines the organization, corporate powers, and directorate of the Federal Reserve banks. The Banking Act of 1935 made an important organizational change. Under the original act, the board of directors of the Federal Reserve bank had the power to appoint "such officers and employees as are not otherwise provided for in this act, to define their duties, require bonds for them and fix the penalty thereof, and to dismiss at pleasure such officers or employees." The designation of "governor," which Federal Reserve banks adopted for their chief executive officer, was not provided for in the act. Under the Banking Act of 1935, and effective March 1, 1936, the board of directors of the Federal Reserve bank has the power to appoint a president, vice-presidents, and such officers and employees as are not otherwise provided for in the act, to define their duties, require bonds for them and fix the penalty thereof, and to dismiss at pleasure such officers or employees. The title "governor" is reserved for members of the Board of Governors of the Federal Reserve of the bank and shall be appointed by the board of directors, with the approval of the Board of Governors of the Federal Reserve System, for a term of five years. The first vice-president of the bank shall be appointed in the same manner and for the same term as the president and in the absence of disability of the president, or during a vacancy in the office of president, shall serve as chief executive officer of the bank. No change was made in the number, classes, or qualifications of the board of directors. |