Please enable JavaScript.

Coggle requires JavaScript to display documents.

Monetary policy (The FED (fed res bank of NY (larget bank supervuision…

- - - - owned bymember commercial banks in the district who collects a 6% dividend
      - Fed bank presidents are not subject to congressional confirmation(independence from politician)
      - member banks to elect 6 directors while 3 are appointed by the BOG
      - Directors represent professional bankers, prominent business leaders and public interest (3 from each group)
        
        class A directors are elected by the member banks and represent them
        
        Class B directors are elected by member banks but represent the public, they cannot be officiers or directors of banks
        
        Class c directors represent the public but are picked by the Fed BOG, they cannot be officers or bank directors and cannot own shares of banks or bank holding companies
  - - - fiscal agent for US govt: clear checks, process electronic payments and issue, redeems and transfer US TSY securities
      - issue currency
      - Check Processing for depository insitiution
      - Electronic payments
      - Evaluate bank mergers and expansion
      - lender to member banks
      - liason between local community and the fed reserve system
      - perform bank examinations
    - - establish the discount rate at which member banks borrow from the FRB at
      - determin which banks receive loans
      - elect one member to the Fed Advisory Council
      - 5 of the 12 bank presidents vote in the FOMC
  - - - by 1987 all depository institutions became subject to the same reserve requirements to keep deposits at the Fed and all depository institutions were given access to the Fed reserve facilities such as discount window and Fed check clearing
      - currently few distinctions between member and non member banks
  - - - 7 governors appointed by president, all are members of the FOMC
      - Effectively set discount rate
      - sets interest rate the Fed res pays on reserve balances to help implement FOMC's monetary policy
      - serves in an advisory capacity to the president and represent the US in foreign economic matters
      - membersVC: Richard Clarida; VC for supervision: Randall Quarles; Governor: Dr Lael Brainard, 3 vacant seats
    - - Jerome Powell
      - spokesperson for the FR system, negotiates as needed with congress and president
      - sets agenda for FOMC meetings
      - no legal authority to exercise control over the system and its member banks
    - - 7 members of the BOG+presiendt of the fed bank of NY+ 4 other fed bank presidents (in turns, the other 7 vote but dont attend). The chair of BOG is also chair
      - Makes decisions regarding open market operations, to influence monetary base
      - key focal point of policy making of the fed given the key role of open market operations
- - - - discount rate/loans (banks borrowign from CB)
      - reserve requirements
      - open market operations (CB purchase/sale of financial assets, generally government securities)
    - - liquidity requirements have an impact on reserve requirements