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Perspective on the Federal Reserve’s Banking
Supervision
In the interest of promoting a sound banking and financial
system in which the public can place its confidence, the
goal of banking supervision at the Federal Reserve Bank of
Dallas is to provide competent and fair supervision based
on innovative risk-focused processes.
Q. What are the advantages of membership in the
Federal Reserve System for a state-chartered bank?
Accessibility/Responsiveness. Our portfolio
management philosophy focuses on building relationships to
ensure that member bank management has a reliable and knowledgeable
contact and direct access to our senior management.
Public Relations Value. Membership
conveys an association with the general reputation and
public trust
the Federal Reserve enjoys as our country’s central
bank.
Quality Service. This is a priority of
the Federal Reserve Bank of Dallas. We continually seek member
bank management feedback on the quality and efficiency of
the examination and overall supervisory process.
Ownership. Member
banks purchase stock in their regional Federal Reserve
Bank and, as stockholders,
play a role in the election of the Federal Reserve Bank’s
board of directors.
Q. What institutions are eligible for membership?
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?
- Financial condition
- General character of management
- Capital adequacy
- Convenience and needs of the community
Q. Is there an application fee?
There is no application fee.
Q. Does my application require public notice?
No, that requirement was eliminated in 1998.
Q. How long does it take?
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. Is an examination required?
Not always. The need for an on-site examination depends
on each bank’s individual circumstances.
Q. Is there an examination fee?
There is no examination fee.
Q. Does Fed membership convey FDIC insurance?
No, a separate application will need to be filed with the
FDIC.
Q. Does a national bank converting to a state charter
need to reapply for Fed membership?
Yes. Fed membership does not transfer automatically. Stock
in the Federal Reserve will also have to be reissued in the
name of the new bank.
Q. Are there any conditions of membership?
Member banks are required to purchase Fed 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. Who can I contact for more information and how
do I apply?
Contact Rob Jolley, Director of Applications,
by e-mail or phone
(214) 922-6071. |
