Federal Reserve Membership FAQs
| Q: | What institutions are eligible for membership? |
| A: | Any bank or other incorporated banking institution engaged in similar business may become a member of the Federal Reserve System. National banks are required by law to be members. State-chartered banks may join if they meet certain requirements. |
| Q: | What factors are considered in applications for membership? |
| A: | Financial condition General character of management Capital adequacy Convenience and needs of the community |
| Q: | Is there an application fee associated with becoming a member? |
| A: | There is no application fee. |
| Q: | Is an examination required prior to my application being approved? |
| A: | Not always. The need for an on-site examination depends on each bank’s individual circumstances. |
| Q: | Does my application require public notice? |
| A: | No. This requirement was eliminated in 1998. |
| Q: | Are there any conditions of membership? |
| A: | Member banks are required to purchase Federal Reserve stock in accordance with Regulation I (12 CFR 209) and are expected to follow the general safety and soundness guidelines found in Regulation H (12 CFR 208). |
| Q: | How long does it take for my application to be processed? |
| A: | As little as 15 days for well-capitalized institutions with CAMELS and compliance ratings of 1 or 2, a satisfactory CRA rating and no major unresolved supervisory issues. |
| Q: | Does Federal Reserve membership convey FDIC insurance? |
| A: | No. A separate application needs to be filed with the FDIC. |
| Q: | Is there a fee for examinations? |
| A: | The Federal Reserve does not charge a fee for its examinations. |
| Q: | Does a national bank converting to a state charter need to reapply for Federal Reserve membership? |
| A: | Yes. Federal Reserve membership does not transfer automatically. Stock in the Federal Reserve will also have to be reissued in the name of the new bank. |
| Q: | Who can I contact for more information? |
| A: | Contact Robert Augusta Jr., Vice President, Regional and Community Supervision at 617-973-3350 or Maureen Savage, Vice President, Credit, Risk Management, Statistics, and Analytics at 617-973-3467. |
