Federal Reserve Research Paper
The Federal Reserve Bank (Fed) was created to reduce the risk of a repeat of the financial panics that occurred in the United States before its creation in 1913. The official objective of the Fed is to ensure the financial strength and stability of the nation’s banking system. The Fed regulates and examines the nation’s depository institutions to reach its objective. Also, it serves as a central bank that cashes checks drawn on the Treasury Bank, places currency into circulation and initiates fund transfers between depository institutions. The Fed splits the country into twelve districts, each of which is served by a separate district office of the Fed.
The New York Federal Reserve Bank (FRBNY), employing over three-thousand people, serves all of the state of New York, northern New Jersey, a part of Connecticut, and all of Puerto Rico and the Virgin Islands. While geographically serving the smallest area compared to most other Fed banks, FRBNY processes the most assets and has the largest volume of activity of any of the banks.
In addition to its main office, the FRBNY also has a branch office in Buffalo, and two regional offices: one in Utica, NY and one in East Rutherford, NJ. Both regional offices are charged with handling check clearing for their respective geographical areas. Between the two offices, they process 5.6 million checks per day. When a check is presented for deposit at a depository institution, the bank deposits the check usually at its regional Fed office or local branch. Read more…