US Federal Reserve Bank - techintroduce

Institutions Introduction

According to the US Federal Reserve Bank, its purpose is to "to help eliminate inflation and influence of inflation, and actively participate in the creation environment, promote high cost rate, Stable price, national economic growth and continuous consumption level. Another important role in the "US Federal Reserve Bank" is to promote funding in the banking system. So far, by encouraging technology innovation in electronic transfer. The Fed has greatly improved the efficiency of the payment system. The earliest fund flow is conducted by the telegram, the time can be traced back to 1918. In the end, the Fed will move toward the busless currency or e-money, once it is realized, its daily daily Job Responsibilities - Replace the old coins and confiscation of counterfeit banknotes will not be present.

Control the US economy of the world economy, in the control of the US Federal Reserve Bank.

mechanism structure / H2>

Federal Reserve Bank, including 12 federal reserves, with a major federal reserve bank per area, with branches in other cities in this area. 3 home largest Federal Reserve Banks are New York, Chicago and San Francisco Federal Reserve Bank, which controlled more than 50% of assets (discount loans, certificate and other assets) of the federal reserve system. Among them, the New York Federal Reserve Bank has approximately 1/4 of the entire system. The asset is the most important federal reserve bank.

All federal reserve banks are quasi-public institutions (some private, partial governments), their shareholders from the federal reserve system in all districts private commercial banks These member banks purchase the stock (member qualification requirements) of the Federal Reserve Bank of the District, the law stipulates that the dividends pay more than 6% of these stocks each year.

Bank distribution

12 federal Reserve Bank and its city distribution:

First Federal Reserve Area - Boston Federal Reserve Bank Federal Reserve Bank of Boston
Second Federal Reserve Area - New York Federal Reserve Bank Federal Reserve Bank of New York
Third Federal Reserve Area - Philadelphia Federal Reserve Bank Federal Reserve Bank of Philadelphia
Fourth Federal Reserve Area - Cleveland Federal Reserve Bank Federal Reserve Bank of Cleveland
Fifth Federal Reserve Area - Richmond Federation Reserve Bank FEDERAL RESERRVE BANK OF RICHMOND

Sixth Federal Reserve Area - Atlanta Federal Reserve Bank Federal Reserve Bank of Atlanta P>

Seventh Federal Reserve Zone - Chicago Federal Reserve Bank Federal Reserve Bank of Chicago < / P>
Eight Federal Reserve Area - St. Louis Federal Reserve Bank Federal Reserve Bank of St. Louis
Tenth Federal Reserve Area - Kansas Federal Reserve Bank Federal Reserve Bank of Kansas City
11th Federal Reserve - Dallas Federal Reserve Bank Federal Reserve Bank of Dallas
12 Federal Reserve Area - San Francisco Federal Reserve Bank Federal Reserve Bank Of San Francisco

New York Federal Reserve Area is the highest savings area of assets, while the San Francisco Federal Reserve Area covers the most wide range, next is the Kansas Federation Reserve Area and the Mini Polys Federal Reserve Area. Missouri is the only state from two federal reserve banks (Kansas Federal Reserve Area and the St. Louis Federal Reserve Area). In the twelfth federal reserve area, the Seattle Branch is responsible for the Alaska region, and Hawaii is directly managed by the San Francisco Federal Reserve Bank. New York and San Francisco Federal Reserve Bank's management area include non-51 states in the US Territory - New York Federal Reserve Bank: US Puerto Rico, US Virgin Islands; San Francisco Federal Reserve Bank: US Samoa Islands, Guam, United States North Maria Nag Islands (Saipa). The Federal Reserve System Board last adjusts the border of each reserve area for the West, in February 1996.

The personnel consisting of

The Fed was managed by a seven presidental committee, and all committees were appointed by the president. Each member is terminated for 14 years. At the President, a chairman and a vice-chair were four years. The Federal Open Market Committee (FOMC) consisting of twelve members is an important influence, the committee to meet eight meetings, discuss the US economy and monetary policy.

US Federal Reserve Bank

The leader of the federal reserve bank is nominated by the board of directors by the board of directors, and it can be taken after approval by the Federal Reserve Commission.

Directors of the federal reserve banks of each reserve area can be divided into A, B, C3. Three Directors were produced by members of the member, which were vocational bankers; 3 BD DODances were also generated by members of the members, which were well-known people from industry, labor, agriculture or consumption sectors; 3 Class C directors The reserve committee appointed, representing the public interest, the bank's official, employee or shareholder.

Institutional function

Basic function

12 federal reserve banking responsibilities as follows: 1, check liquidation; 2, currency issuance; 3. Recycling circulation Currency; 4, management and disclosure of commercial banks to commercial banks in the region; 5. Application for assessment and bank expansion business; 6, act as medium between business and federal reserves; 7, check bank shareholding Company and state registered member banks; 8, collect local Shengye status data; 9. Organize the study of vocational economics to engage in the research on monetary policy operations.

Regulation method

Guidelines

Fed can suppress inflation or stimulus inflation by buying or selling US Treasury bonds. When it is bought, the money supply increases; when it sells, the money supply is reduced. These transactions occur almost every day. On the other hand, they can help the government to determine, how much is the amount of money available? Is the fund borrowing easily? Is the borrowing cost high? These will affect, how many people will work, whether the price will be stable, how many goods and services will be produced and sold ... and more.

Reserve

The Fed can request commercial banks to retain certain percentages as "reserves", these reserves or cash in the Treasury, or It is a special account with the "reserve settlement" special account for the Fed. Since banks cannot use reserves, the Fed can guide banks to lend more or less funds to the market by changing the requirements of reserves. The more funds that the bank needs to reserve, the less the funds they can borrow, the higher the interest rate of loans, the greater the restrictions of retail sales of loans, and the restrictions such as buildings.

discount rate

is also currently available, the US Fed will set an discount rate, and banks can borrow according to this interest rate. Banks can borrow from the Fed's "discount window", thereby there is more funds for borrowing. However, good banking usually does not borrow from the discount window. In the past two decades, the influence of the Fed has declined in this area.