Annual Report 2012 - ffiec

Policy decisions are implemented
by the FRB or under delegated
authority to the Director for the
Division of Banking Supervision
and Regulation, the Director for
the Division of Consumer and
Community Affairs, and to the
12 Federal Reserve Banks—each
of which has operational responsibility
within a specific geographical
area. The Reserve Bank
Districts are headquartered in
Boston, New York, Philadelphia,
Cleveland, Richmond, Atlanta,
Chicago, St. Louis, Minneapolis,
Kansas City, Dallas, and San Francisco.
Each Reserve Bank has a
president (chief executive officer)
who serves for five years and is
appointed by the Reserve Bank’s
class B and class C directors,
and other executive officers who
report directly to the president.
Among other responsibilities, a
Reserve Bank employs a staff of
examiners who examine state
member banks and Edge Act and
agreement corporations, conduct
BHC inspections, and examine the
international operations of foreign
banks—whose head offices are
usually located within the Reserve
Bank’s District. When appropriate,
examiners also visit the overseas
offices of U.S. banking organizations
to obtain financial and
operating information to evaluate
adherence to safe and sound banking
practices.
National banks, which must be
members of the Federal Reserve
System, are chartered, regulated,
and supervised by the OCC. Statechartered
banks may apply to
and be accepted for membership
in the Federal Reserve System,
after which they are subject to the
supervision and regulation of the
FRB, which is coordinated with the
state’s banking authority. Insured
state-chartered banks that are not
members of the Federal Reserve
System are regulated and supervised
by the FDIC. The FRB also
has overall responsibility for foreign
banking operations, including
both U.S. banks operating abroad
and foreign banks operating
branches within the United States.
The Dodd-Frank Act directs the
FRB to collect assessments, fees,
and other charges that are equal
to the expenses incurred by the
Federal Reserve to carry out its
responsibilities with respect to
supervision of (1) BHCs and
SLHCs with assets equal to or
greater than $50 billion and (2)
all nonbank financial companies
supervised by the FRB.
Additionally, the Dodd-Frank
Act created an independent CFPB
within the Federal Reserve System.
The FRB covers the expenses of the
CFPB’s operations with revenue it
generates principally from assessments
on the 12 Federal Reserve
Banks.
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