Board of Directors

The Federal Reserve Banks are not under the control of any government agency, but each Reserve Bank is under a board of directors, composed of nine members who represent business, the banking industry, and the general public in their Federal

Reserve district. The directors are classified as A-, B- or C-class directors. Class A members can, come from the banking community of the district, class B members can represent the borrowers of the district, and class C Directors will represent the general public. Class B and class C directors cannot be connected to the banking industry in any way, including the owning of bank stocks.

The members of the board are primarily chosen by the banking community in the district. Class A and class B directors are elected by the member banks, and the selection process sees that all sizes of banks are represented. Class C members are selected by the board of governors of the Federal Reserve.

As in any other corporation, the board of directors selects the president and the vice-president, and the board of the Reserve bank will choose the members of boards of any branch bank established in their district. This process ensures that the branch banks reflect the needs of the areas they serve.

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