Full text of Annual Report of the Board of Governors of the Federal Reserve System : 2022

View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

REPORT TO CONGRESS

109th

Annual Report of the Board of
Governors of the Federal Reserve System

2022

B O A R D O F G OV E R N O R S O F T H E F E D E R A L R E S E RV E S Y S T E M

Contents
About the Federal Reserve ........................................................................................... iii
1 Overview ....................................................................................................................... 1
2 Monetary Policy and Economic Developments ..................................................... 3
March 2023 Summary ...................................................................................................... 3
June 2022 Summary ........................................................................................................ 9

3 Financial Stability ..................................................................................................... 15
Monitoring Financial Stability Vulnerabilities ...................................................................... 15
Domestic and International Cooperation and Coordination ................................................. 22

4 Supervision and Regulation .................................................................................... 25
Supervised and Regulated Institutions ............................................................................. 26
Supervisory Developments .............................................................................................. 29
Regulatory Developments ................................................................................................ 49

5 Payment System and Reserve Bank Oversight ................................................... 53
Payment Services to Depository and Other Institutions ...................................................... 54
Currency and Coin .......................................................................................................... 60
Fiscal Agency and Government Depository Services .......................................................... 62
Evolutions and Improvements to the System ..................................................................... 66
Oversight of Federal Reserve Banks ................................................................................. 70
Pro Forma Financial Statements for Federal Reserve Priced Services ................................. 76

6 Consumer and Community Affairs ......................................................................... 83
Consumer Compliance Supervision .................................................................................. 84
Consumer Laws and Regulations ..................................................................................... 95
Consumer Research and Analysis of Emerging Issues and Policy ........................................ 97
Community Development ............................................................................................... 100

Appendixes
A Federal Reserve System Organization ................................................................ 105
Board of Governors ....................................................................................................... 105
Federal Open Market Committee .................................................................................... 113
Board of Governors Advisory Councils ............................................................................ 115
Federal Reserve Banks and Branches ............................................................................ 119

B Minutes of Federal Open Market Committee Meetings .................................. 143
Meeting Minutes .......................................................................................................... 143

C Federal Reserve System Audits ........................................................................... 145
Office of Inspector General Activities .............................................................................. 145
Government Accountability Office Reviews ...................................................................... 147

D Federal Reserve System Budgets ....................................................................... 149
System Budgets Overview ............................................................................................. 149

109th Annual Report | 2022

Board of Governors Budgets .......................................................................................... 153
Federal Reserve Banks Budgets .................................................................................... 159
Currency Budget ........................................................................................................... 166

E Record of Policy Actions of the Board of Governors ........................................ 171
Rules and Regulations .................................................................................................. 171
Policy Statements and Other Actions .............................................................................. 172
Discount Rates for Depository Institutions in 2022 ......................................................... 176
The Board of Governors and the Government Performance and Results Act ....................... 178

F Litigation .................................................................................................................. 181
Pending ....................................................................................................................... 181
Resolved ...................................................................................................................... 182

G Statistical Tables .................................................................................................... 183

iii

About the Federal Reserve
The Federal Reserve was created by an act of Congress on December 23, 1913, to provide the
nation with a safer, more flexible, and more stable monetary and financial system. In establishing
the Federal Reserve System, the United States was divided geographically into 12 Districts, each
with a separately incorporated Reserve Bank.
For more information about the Federal Reserve Board and the Federal Reserve System, visit the
Board’s website at https://www.federalreserve.gov/aboutthefed/default.htm. Online versions of
the Board’s annual report are available at https://www.federalreserve.gov/publications/annualreport/default.htm.

Overview

This report covers the calendar-year 2022 operations and activities of the Federal Reserve, the
central bank of the United States (see figure 1.1), categorized in the five key functional areas:
• Conducting monetary policy and monitoring economic developments. Section 2 provides
adapted versions of the Board’s semiannual Monetary Policy Reports to Congress.
• Promoting financial system stability. Section 3 reviews Board and System activities and
research undertaken to foster a resilient and stable financial system.
• Supervising and regulating financial institutions and their activities. Section 4 summarizes
the Board’s efforts related to financial institution oversight and examinations, supervisory policymaking, and regulatory activities and enforcement.
• Fostering payment and settlement system safety and efficiency. Section 5 describes actions
by the Board and Reserve Banks to promote the effectiveness of the nation’s payment systems,
discusses initiatives to promote payment system safety, and provides data on Reserve Bank
services and income.
• Promoting consumer protection and community development. Section 6 provides information
on the Board’s efforts to promote a fair and transparent financial services market for con-

Figure 1.1. The Federal Reserve System’s unique structure ensures broad perspective
The Federal Reserve System consists of 12 Reserve Banks located in major cities throughout the United States, along
with a seven-member Board of Governors headquartered in Washington, D.C. See “Federal Reserve System Organization” in appendix A for more information on the Board and System leadership.

9
Minneapolis

7
10

San Francisco

Cleveland

Chicago

Alaska

Hawaii
Guam

New York
Philadelphia
(Board of Governors)

St. Louis

Richmond

5
6

Boston

Washington, D.C.

Kansas City

2
3

Atlanta

Dallas

Puerto Rico
Virgin Islands

109th Annual Report | 2022

sumers, protect consumer rights, and ensure that Board policies and research take consumer
and community perspectives into account.
Additional information for calendar-year 2022 on Federal Reserve leadership, policy actions, budgets as well as historical data and supporting activities can be found in the appendixes:
• Appendix A lists key officials across the Federal Reserve System
• Appendix B provides links to the minutes for each of the eight regularly scheduled meetings of
the Federal Open Market Committee
• Appendix C contains information on the Federal Reserve’s audited financial statements as well
as reviews conducted by the Office of Inspector General and the Government Accountability Office
• Appendix D presents information on the budgets for the Board and Reserve Banks and on
currency-related costs
• Appendix E summarizes policy actions of the Board of Governors
• Appendix F lists litigation, both pending and resolved, that the Board of Governors was a
party in
• Appendix G includes statistical tables that provide updated historical data concerning Board and
System operations and activities

Monetary Policy and Economic
Developments

The Federal Reserve conducts the nation’s monetary policy to promote maximum employment,
stable prices, and moderate long-term interest rates in the U.S. economy. This section reviews
U.S. monetary policy and economic developments in 2022, with excerpts and select figures from
the Monetary Policy Report published in March 2023 and June 2022.1 The report, submitted
semiannually to the Congress, is delivered concurrently with testimony from the Federal Reserve
Board Chair.2

March 2023 Summary
Although inflation has slowed since the middle of last year as supply bottlenecks eased and
energy prices declined, it remains well above the Federal Open Market Committee’s (FOMC) objective of 2 percent. The labor market remains extremely tight, with robust job gains, the unemployment rate at historically low levels, and nominal wage growth slowing but still elevated. Real gross
domestic product (GDP) growth picked up in the second half of 2022, although the underlying
momentum in the economy likely remains subdued. Bringing inflation back to 2 percent will likely
require a period of below-trend growth and some softening of labor market conditions.
In response to high inflation, the FOMC continued to rapidly increase interest rates and reduce its
securities holdings. The Committee has raised the target range for the federal funds rate a further
3 percentage points since June, bringing the range to 4½ to 4¾ percent, and indicated that it
anticipates that ongoing increases in the target range will be appropriate. The Federal Reserve has
also reduced its holdings of Treasury securities and agency mortgage-backed securities by about
$500 billion since June, further tightening financial conditions.
The Federal Reserve is acutely aware that high inflation imposes significant hardship, especially
on those least able to meet the higher costs of essentials. The Committee is strongly committed
to returning inflation to its 2 percent objective.

Those complete reports are available on the Board’s website at https://www.federalreserve.gov/monetarypolicy/files/
20230303_mprfullreport.pdf (March 2023) and https://www.federalreserve.gov/monetarypolicy/files/
20220617_mprfullreport.pdf (June 2022).
As required by section 2B of the Federal Reserve Act, the Federal Reserve Board submits written reports to the Congress
that contain discussions of “the conduct of monetary policy and economic developments and prospects for the future.”

109th Annual Report | 2022

Recent Economic and Financial Developments
Inflation. Consumer price inflation, as measured by the 12-month change in the price index for
personal consumption expenditures (PCE), was 5.4 percent in January, down from its peak of
7 percent last June but still well above the FOMC’s 2 percent objective. Core PCE prices—which
exclude volatile food and energy prices and are generally considered a better guide to the direction
of future inflation—also slowed but still increased 4.7 percent over the 12 months ending in
January (figure 2.1). As supply chain bottlenecks have eased, increases in core goods prices
slowed considerably in the second half of last
Figure 2.1. Personal consumption expenditures
price indexes

year. Within core services prices, housing services inflation has been high, but slowing
increases in rents for new tenants in the

Monthly

Percent change from year earlier
Total

7.0

for housing services in the year ahead. For

6.0

other services, however, price inflation

5.0

remains elevated, and prospects for slowing

4.0
3.0
Trimmed
mean
Excluding food
and energy

tight labor market conditions. Measures of

1.0

longer-term inflation expectations remain

broadly consistent with the FOMC’s longer-run

Note: The data extend through January 2023.
Source: For trimmed mean, Federal Reserve Bank of
Dallas; for all else, Bureau of Economic Analysis; all
via Haver Analytics.

inflation is not becoming entrenched.

remained extremely tight, with job gains aver-

Thousands

2022

objective of 2 percent, suggesting that high

The labor market. The labor market has

Figure 2.2. Nonfarm payroll employment

2021

within the range of values seen in the decade
before the pandemic and continue to be

2015 2016 2017 2018 2019 2020 2021 2022 2023

2020

inflation may depend in part on an easing of

2.0
0

Monthly

second half of last year point to lower inflation

aging 380,000 per month since the middle of
last year and the unemployment rate

1,200

remaining at historical lows (figure 2.2). Labor

1,000

demand in many parts of the economy

800

exceeds the supply of available workers, with

600

the labor force participation rate essentially

400

unchanged from one year ago (figure 2.3).

200

Nominal wage gains slowed over the second

2023

half of 2022, but they remain above the pace
consistent with 2 percent inflation over the

Note: The data shown are a 3-month moving average
of the change in nonfarm payroll employment and
extend through January 2023.
Source: Bureau of Labor Statistics via Haver Analytics.

longer term, given prevailing trends in productivity growth.

Monetary Policy and Economic Developments

Figure 2.3. Unemployment rate, by race and ethnicity

Monthly

Percent
20
18

Black or African American

16
14
12
Hispanic or Latino

10
White

8
6

Asian

4
2
2005

2007

2009

2011

2013

2015

2017

2019

2021

2023

Note: Unemployment rate measures total unemployed as a percentage of the labor force. Persons whose ethnicity is
identified as Hispanic or Latino may be of any race. Small sample sizes preclude reliable estimates for Native Americans and other groups for which monthly data are not reported by the Bureau of Labor Statistics. The data extend
through January 2023.
Source: Bureau of Labor Statistics via Haver Analytics.

Economic activity. Real GDP is reported to have fallen in the first half of 2022 but to have then
risen at roughly a 3 percent pace in the second half. Some of the swings in growth reflect fluctuations in volatile expenditure categories such as net exports and inventory investment. Private
domestic final demand, which excludes these volatile components, rose at a subdued rate in both
the first and second halves last year. Consumer spending has continued to rise at a solid pace,
supported by the savings accumulated during the pandemic. However, manufacturing output
declined in recent months, and the housing sector has continued to contract in response to
elevated mortgage rates.
Financial conditions. Financial conditions have tightened further since June and are significantly
tighter than a year ago. The FOMC has raised the target range for the federal funds rate a further
3 percentage points since June, and the market-implied expected path of the federal funds rate
over the next year also shifted up notably. Yields on nominal Treasury securities across maturities
have risen considerably further since June, while investment-grade corporate bond yields and mortgage rates have also increased but by less than Treasury rates. Equity prices were volatile but
increased moderately on net. The rise in interest rates over the past year has weighed on
financing activity. Issuance of leveraged loans and speculative-grade corporate bonds slowed substantially in the second half of the year, while investment-grade bond issuance declined modestly.
Business loans at banks continued to grow in the second half of 2022 but decelerated in the

109th Annual Report | 2022

fourth quarter. While business credit quality remains strong, some indicators of future business
defaults are somewhat elevated. For households, mortgage originations continued to decline
materially, although consumer loans (such as auto loans and credit cards) grew further. Delinquency rates for credit cards and auto loans rose last year.
Financial stability. Against the backdrop of a weaker economic outlook, higher interest rates, and
elevated uncertainty since June, financial vulnerabilities remain moderate overall. Valuations in
equity markets remained notable and ticked up, on net, as equity prices increased moderately
even as earnings expectations declined late in the year. Real estate prices remain high relative to
fundamentals, such as rents, despite a marked slowing in price increases. While market functioning remained orderly, market liquidity—the ability to trade assets without a large effect on
market prices—remained low in several key asset markets, including in the Treasury market, when
compared with levels before the COVID-19 pandemic. Nonfinancial business and household debt
grew in line with GDP, leaving vulnerabilities associated with borrowing by businesses and households unchanged at moderate levels. Risk-based capital ratios at banks declined a touch last year
but remain well above regulatory requirements. Funding risks at domestic banks and brokerdealers remain low, and the large banks at the core of the financial system continue to have
ample liquidity. Prime and tax-exempt money market funds, as well as many bond and bank-loan
mutual funds, continue to be susceptible to runs. (See the box “Developments Related to Financial Stability” on pages 28–29 of the March 2023 Monetary Policy Report.)
International developments. Foreign economic growth moderated in the second half of last year,
weighed down by the economic fallout of Russia’s war against Ukraine and a slowdown in China
related to COVID-19. Despite some signs of easing in headline inflation abroad, core foreign inflation remains high and inflationary pressures are broad, in part reflecting tight labor markets and
the pass-through of past energy price increases to other prices. In response to persistently high
inflation, many major foreign central banks, along with the Fed, have tightened the stance of monetary policy significantly since June. More recently, many foreign central banks slowed the pace of
their policy rate increases, signaled that such a slowing is coming, or paused policy rate hikes to
take stock of the effects of policy tightening thus far on their economies.
Financial conditions abroad have tightened modestly, on net, since the middle of last year. Global
sovereign bond yields rose from continued tightening of foreign monetary policy and spillovers
from increases in U.S. yields. Equity prices abroad rose toward the end of the year amid surprising
resilience of European economies and the removal of China’s zero-COVID policy. Meanwhile, the
trade-weighted exchange value of the U.S. dollar is a touch higher since mid-2022.

Monetary Policy and Economic Developments

Monetary Policy
In response to high inflation, the Committee last year rapidly increased the target range for the
federal funds rate and began reducing its securities holdings. Adjustments to both interest rates
and the balance sheet are playing a role in firming the stance of monetary policy in support of the
Committee’s maximum-employment and price-stability goals.
Interest rate policy. The FOMC continued to swiftly increase the target range for the federal funds
rate, bringing it to the current range of 4½ to 4¾ percent (figure 2.4). In light of the cumulative
tightening of monetary policy and the lags with which monetary policy affects economic activity
and inflation, the Committee slowed the pace of policy tightening at the December and January
meetings but indicated that it anticipates that ongoing increases in the target range will be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation
to 2 percent over time.

Figure 2.4. Selected interest rates

Daily

Percent
5
10-year Treasury rate

4
3

2-year Treasury rate

2
1

Target federal funds rate

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Note: The 2-year and 10-year Treasury rates are the constant-maturity yields based on the most actively traded
securities. The data extend through February 28, 2023.
Source: Department of the Treasury; Federal Reserve Board.

Balance sheet policy. The Federal Reserve has continued the process of significantly reducing its
holdings of Treasury and agency securities in a predictable manner.3 Beginning in June of last year,
principal payments from securities held in the System Open Market Account have been reinvested
only to the extent that they exceeded monthly caps.

See the May 4, 2022, press release regarding the Plans for Reducing the Size of the Federal Reserve’s Balance Sheet,
available on the Board’s website at https://www.federalreserve.gov/newsevents/pressreleases/
monetary20220504b.htm.

109th Annual Report | 2022

Special Topics
Employment and earnings across groups. At the onset of the pandemic, employment fell by more
for disadvantaged groups than the overall population, but tight labor market conditions over the
past two years have largely reversed those movements. As the labor market tightened, employment grew faster for African Americans and Hispanics, and for less educated workers, than for
other workers. Wages have grown more rapidly for these workers also, as extremely strong labor
demand has outstripped available labor supply. However, while disparities in employment have
largely returned to pre-pandemic levels, there remain significant disparities in absolute levels of
employment across groups. (See the box “Developments in Employment and Earnings across
Demographic Groups” on pages 10–11 of the March 2023 Monetary Policy Report.)
Weak labor supply. Even with labor demand remarkably strong, the labor force has been slow to
recover from the pandemic, leaving a significant labor supply shortfall relative to the levels
expected before the pandemic. More than half of that labor force shortfall reflects a lower labor
force participation rate because of a wave of retirements beyond what would have been expected
given demographic trends. The remaining shortfall is attributable to slower population growth,
which in turn reflects both the higher mortality primarily due to COVID and lower rates of immigration in the first two years of the pandemic. (See the box “Why Has the Labor Force Recovery Been
So Slow?” on pages 13–16 of the March 2023 Monetary Policy Report.)
Monetary policy rules. Simple monetary policy rules, which prescribe a setting for the policy
interest rate based on a small number of other economic variables, can provide useful guidance to
policymakers. Since 2021, inflation has run well above the Committee’s 2 percent longer-run
objective, and labor market conditions have been very tight over the past year. As a result, simple
monetary policy rules have prescribed levels for the federal funds rate that are well above those
observed over the past decade. (See the box “Monetary Policy Rules in the Current Environment”
on pages 42–44 of the March 2023 Monetary Policy Report.)
Federal Reserve’s balance sheet and money markets. The size of the Federal Reserve’s balance
sheet decreased as the Federal Reserve reduced its securities holdings. Reserve balances—the
largest liability on the Federal Reserve’s balance sheet—continued to fall. Take-up in the overnight
reverse repurchase agreement (ON RRP) facility remained elevated, as low rates on repurchase
agreements persisted amid still abundant liquidity and limited Treasury bill supply. The ON RRP
facility continued to serve its intended purpose of helping to provide a floor under short-term
interest rates and supporting effective implementation of monetary policy. Because of the significant increases in administered rates to address high inflation, the Federal Reserve’s interest
expenses rose considerably, and, as a result, net income turned negative. (See the box “Developments in the Federal Reserve’s Balance Sheet and Money Markets” on pages 40–41 of the
March 2023 Monetary Policy Report.)

Monetary Policy and Economic Developments

June 2022 Summary
In the first part of the year, inflation remained well above the Federal Open Market Committee’s
(FOMC) longer-run objective of 2 percent, with some inflation measures rising to their highest
levels in more than 40 years. These price pressures reflect supply and demand imbalances,
higher energy and food prices, and broader price pressures, including those resulting from an
extremely tight labor market. In the labor market, demand has remained strong, and supply has
increased only modestly. As a result, the unemployment rate fell noticeably below the median of
FOMC participants’ estimates of its longer-run normal level, and nominal wages continued to rise
rapidly. Although overall economic activity edged down in the first quarter, household spending and
business fixed investment remained strong. The most recent indicators suggest that private fixed
investment may be moderating, but consumer spending remains strong.
In response to sustained inflationary pressures and a strong labor market, the FOMC has been
adjusting its policies and communications since last fall. At its March meeting, the FOMC raised
the target range for the federal funds rate off the effective lower bound to ¼ to ½ percent. The
Committee continued to raise the target range in May and June, bringing it to 1½ to 1¾ percent
following the June meeting, and indicated that ongoing increases are likely to be appropriate. The
Committee ceased net asset purchases in early March and began reducing its securities holdings
in June.
The Committee is acutely aware that high inflation imposes significant hardship, especially on
those least able to meet the higher costs of essentials. The Committee’s commitment to restoring
price stability—which is necessary for sustaining a strong labor market—is unconditional.

Recent Economic and Financial Developments
Inflation. Consumer price inflation, as measured by the 12-month change in the price index for
personal consumption expenditures, rose from 5.8 percent in December 2021 to 6.3 percent in
April, its highest level since the early 1980s and well above the FOMC’s objective of 2 percent.
This increase was driven by an acceleration of retail food and energy prices, reflecting further
increases in commodity prices due to Russia’s invasion of Ukraine. The 12-month measure of
inflation that excludes the volatile food and energy categories (so-called core inflation) rose initially
and then fell back to 4.9 percent in April, unchanged from last December. Three-month measures
of core inflation have softened since December but remain far above levels consistent with price
stability. Measures of near-term inflation expectations continued to rise markedly, while longerterm expectations moved up by less.
The labor market. Demand for labor continued to outstrip available supply across many parts of
the economy, and nominal wages continued to increase at a robust pace. While labor demand

109th Annual Report | 2022

remained very strong, labor supply increased only modestly. As a result, the labor market tightened further between December and May, with job gains averaging 488,000 per month and the
unemployment rate falling from 3.9 percent to 3.6 percent—just above the bottom of its range
over the past 50 years.
Economic activity. Real gross domestic product (GDP) is reported to have surged at a 6.9 percent
annual rate in the fourth quarter of 2021 and then to have declined at a 1.5 percent annual rate
in the first quarter. The large swings in growth rates reflected fluctuations in the volatile expenditure categories of net exports and inventory investment. Abstracting from these volatile components, growth in private domestic final demand (consumer spending plus residential and business
fixed investment—a measure that tends to be more stable and better reflects the strength of
overall economic activity) was strong in the first quarter, supported by some unwinding of supply
bottlenecks and a further reopening of the economy. The most recent indicators suggest that private fixed investment may be moderating, but consumer spending remains strong. As a result, real
GDP appears on track to rise moderately in the second quarter.
Financial conditions. Financial conditions have tightened significantly this year. The expected path
of the federal funds rate over the next few years shifted up substantially, and yields on nominal
Treasury securities across maturities have risen considerably since late February amid sustained
inflationary pressures and associated expectations for further monetary policy tightening. Equity
prices were volatile and declined sharply, on net, while corporate bond yields increased substantially and spreads increased notably, partly reflecting some concerns about the future corporate
credit outlook. Mortgage rates also rose sharply. In turn, tighter financial conditions may have
begun to weigh on some financing activity. On the business side, nonfinancial corporate bond issuance was solid in the first quarter but slowed somewhat in April and May, with speculative-grade
bond issuance being particularly weak. That said, the growth of bank loans to businesses picked
up, and business credit quality has remained strong thus far. For households, mortgage originations declined materially. Nevertheless, mortgage credit remained broadly available for a wide
range of potential borrowers. For other consumer loans (such as auto loans and credit cards),
credit standards eased somewhat further or changed little, and credit outstanding grew briskly.
Financial stability. Despite experiencing a series of adverse shocks—higher-than-expected inflation, the ongoing supply disruptions related to COVID-19, and Russia’s invasion of Ukraine—the
financial system has been resilient, though portions of the commodities markets temporarily experienced elevated levels of stress. The drop in equity prices and rising bond spreads suggest that
valuation pressures in corporate securities markets have eased some from their previously
elevated levels, but real estate prices have risen further this year. While business and household
debt has been growing solidly, the ratio of credit to GDP has decreased to near pre-pandemic
levels and most indicators of credit quality remained robust, suggesting that vulnerabilities from

Monetary Policy and Economic Developments

nonfinancial leverage are moderate. Large bank capital ratios dipped in the first quarter, but
overall leverage in the financial sector appears moderate and little changed this year. Recent
strains experienced in markets for stablecoins—digital assets that aim to maintain a stable value
relative to a national currency or other reference assets—and other digital assets have highlighted
the structural fragilities in that rapidly growing sector. A few signs of funding pressures emerged
amid the geopolitical tensions, particularly in commodities markets. However, broad funding markets proved resilient, and with direct exposures of U.S. financial institutions to Russia and Ukraine
being small, financial spillovers have been limited to date.
International developments. Economic activity has continued to recover in many foreign economies, albeit with new significant headwinds from Russia’s invasion of Ukraine and COVID lockdowns in China. These headwinds have, on net, pushed commodity prices higher, worsened supply
disruptions, and lowered household and business confidence, thus damping the rebound in foreign
economic activity. As in the United States, consumer price inflation abroad is high and has continued to rise in many economies, boosted by higher energy, food, and other commodity prices as
well by supply chain constraints. In response, many foreign central banks have raised policy rates,
and some have started to reduce the size of their balance sheets.
Foreign financial conditions have tightened notably since the beginning of the year, in part
reflecting the tightening in foreign monetary policy and concerns about persistently high inflation.
Sovereign bond yields in many advanced foreign economies rose. Foreign risky asset prices
declined, also driven by downside risks to the growth outlook amid the lockdowns in China and
Russia’s invasion of Ukraine. The trade-weighted value of the dollar appreciated notably.

Monetary Policy
In response to significant ongoing inflation pressures and the tightening labor market, the Committee has been adjusting its policies and communications since last fall. The Committee wound
down net purchases of securities and began reducing those securities holdings more rapidly than
expected and also initiated a swift increase in interest rates. Adjustments to both interest rates
and the balance sheet are playing a role in firming the stance of monetary policy in support of the
Committee’s maximum-employment and price-stability goals.
Interest rate policy. In March, after holding the federal funds rate near zero since the onset of the
pandemic, the FOMC raised the target range for that rate to ¼ to ½ percent. The Committee
raised the target range again in May and June, bringing it to the current range of 1½ to 1¾ percent, and conveyed its anticipation that ongoing increases in the target range will be appropriate.
Balance sheet policy. The Federal Reserve began reducing its monthly net asset purchases last
November and accelerated the reductions in December, bringing net purchases to an end in early

109th Annual Report | 2022

March. In January, the FOMC issued a set of principles regarding its planned approach for significantly reducing the size of the Federal Reserve’s balance sheet. Consistent with those principles,
the Committee announced in May its specific plans for significantly reducing its securities holdings
and that these reductions would begin on June 1.4
The Committee acutely recognizes the significant hardship caused by elevated inflation, especially
on those least able to meet the higher costs of essentials. The Committee is strongly committed
to restoring price stability, which is necessary for sustaining a strong labor market.

Special Topics
Labor market disparities. The labor market recovery over the past year and a half has been robust
and widespread as the labor market effects of the pandemic have eased, with particularly strong
improvement among groups that had suffered the most. As a result, employment and earnings of
nearly all major demographic groups are near or above their levels before the pandemic, and
employment rates are again near multidecade highs. However, there remain notable differences in
employment and earnings across groups that predate the pandemic.
Developments in global supply chains. Supply chain bottlenecks remain a major impediment for
domestic and foreign firms. While U.S. manufacturers have been recording solid output growth for
more than a year, order backlogs and delivery times remain high, and producer prices have risen
rapidly. Further risks to global supply chains abound. In China, COVID-19 lockdowns drove the
largest monthly declines in industrial production there since early 2020 while also disrupting
internal and international freight transportation. In addition, the war in Ukraine continues to put
upward pressure on energy and food prices and has raised the risk of disruption in the supply of
inputs to some manufacturing industries.
Monetary policy rules. Simple monetary policy rules, which relate a policy interest rate to a small
number of other economic variables, can provide useful guidance to policymakers. Many simple
policy rules prescribed strongly negative values for the federal funds rate during the pandemicdriven recession. With inflation running well in excess of the Committee’s 2 percent longer-run
objective, a strong U.S. economy, and tight labor market conditions, the simple monetary policy
rules considered here call for raising the target range for the federal funds rate significantly.
Global inflation. Inflation abroad rose rapidly over the past year, reflecting soaring food and commodity prices, pandemic-related supply disruptions, and demand imbalances between goods and
services. The price pressures have been amplified by the war in Ukraine and COVID-19 lockdowns

Monetary Policy and Economic Developments

in China. Although the recent inflation surge was concentrated in volatile components, such as
food and energy, price increases have broadened to core goods and services.
Global monetary policy. With inflation rising sharply across the globe, many central banks have
tightened monetary policy. Policy tightening started last year as some emerging market central
banks, particularly those in Latin America, were concerned that sharp increases in inflation could
become entrenched in inflation expectations. Since fall 2021, many central banks in the advanced
foreign economies have also started tightening monetary policy or are expected to do so soon,
and several central banks that had expanded their balance sheets over the past two years are
now allowing them to shrink.
Developments in the Federal Reserve’s balance sheet. Following the conclusion of net asset purchases, the balance sheet remained stable at around $9 trillion. Alongside the removal of policy
accommodation—through actual and expected increases in the policy rate—plans for shrinking
the size of the balance sheet were announced in May and were initiated in June. Despite the size
of the balance sheet remaining steady, reserve balances fell, in large part because of increasingly
elevated take-up at the overnight reverse repurchase agreement (ON RRP) facility, which reached a
record high of $2.2 trillion. In an environment of ample liquidity, limited Treasury bill supply, and
low repurchase agreement rates, the ON RRP facility continued to serve its intended purpose of
helping to provide a floor under short-term interest rates and to support effective implementation
of monetary policy.

Financial Stability

The Federal Reserve monitors financial system risks and engages at home and abroad to help
ensure the system supports a healthy economy for U.S. households, communities, and
businesses.
In pursuit of continued financial stability, the Federal Reserve monitors the potential buildup of
risks to financial stability; uses such analyses to inform Federal Reserve responses, including the
design of stress-test scenarios and decisions regarding other policy tools such as the countercyclical capital buffer; works with other domestic agencies directly and through the Financial Stability Oversight Council (FSOC); and engages with the global community in monitoring, supervision,
and regulation that mitigate the risks and consequences of financial instability domestically and
abroad.1
This section discusses key financial stability activities undertaken by the Federal Reserve over
2022, which include the following:
1. Monitoring vulnerabilities that affect financial stability (see figure 3.1 for a summary of key vulnerabilities)
2. Promoting a perspective on the supervision and regulation of large, complex financial institutions that accounts for the potential spillovers from distress at such institutions to the financial
system and broader economy
3. Engaging in domestic and international cooperation and coordination
Some of these activities are also discussed elsewhere in this annual report. A broader set of economic and financial developments are discussed in section 2, “Monetary Policy and Economic
Developments,” with the discussion that follows concerning surveillance of economic and financial
developments focused on financial stability. The full range of activities associated with supervision
of systemically important financial institutions, designated nonbank companies, and designated
financial market utilities is discussed in section 4, “Supervision and Regulation.”

Monitoring Financial Stability Vulnerabilities
This section describes the Federal Reserve’s monitoring of vulnerabilities in the financial system
during 2022.
1

For more information on how the Federal Reserve promotes a stable financial system, see the section “Promoting Financial System Stability” in The Fed Explained: What the Central Bank Does, available on the Board’s website at https://
www.federalreserve.gov/aboutthefed/files/the-fed-explained.pdf#page=50.

109th Annual Report | 2022

Figure 3.1. The Federal Reserve assesses four key vulnerabilities in monitoring financial stability
Each quarter, Federal Reserve Board staff assess a set of four vulnerabilities relevant for financial system stability.
These monitoring efforts promote financial stability by informing broader policy discussions and stimulating additional
research.

Asset valuations

Borrowing by businesses
and households

Leverage in the
ﬁnancial sector

Funding risk

Why it matters:

Excessive borrowing
by businesses and
households leaves
them vulnerable to
distress if their
incomes decline or
the assets they own
fall in value.

Excessive leverage
within the ﬁnancial
sector increases the
risk that ﬁnancial
institutions will not
have the ability to
absorb even modest
losses when hit by
adverse shocks.

Funding risks expose
the ﬁnancial system
to the possibility
that investors will
“run” by quickly
withdrawing their
funds from a
particular institution
or sector.

Overvalued assets
are a vulnerability
because the
unwinding of high
prices can be
destabilizing.

Financial institutions are linked together through a complex set of relationships, and their condition depends on the economic condition of the nonfinancial sector. In turn, the condition of the
nonfinancial sector hinges on the strength of financial institutions’ balance sheets, as the nonfinancial sector obtains funding through the financial sector. Monitoring risks to financial stability
is aimed at better understanding these complex linkages and has been an important part of Federal Reserve efforts in pursuit of overall economic stability.
A stable financial system, when hit by adverse events, or “shocks,” is able to continue meeting
demands for financial services from households and businesses, such as credit provision and payment services. By contrast, in an unstable system, these same shocks are likely to have much
larger effects, disrupting the flow of credit and leading to declines in employment and economic
activity.
Consistent with this view of financial stability, the Federal Reserve Board’s monitoring framework
distinguishes between shocks to and vulnerabilities of the financial system. Shocks, such as
sudden changes to financial or economic conditions, are inherently hard to predict. Vulnerabilities
tend to build up over time and are the aspects of the financial system that are most expected to
cause widespread problems in times of stress.

Financial Stability

Accordingly, the Federal Reserve maintains a flexible, forward-looking financial stability monitoring
program focused on assessing how the level and configuration of those vulnerabilities affect the
financial system’s resilience to a wide range of potential adverse shocks.
Each quarter, Federal Reserve Board staff assess a set of vulnerabilities relevant for financial stability, including but not limited to asset valuation pressures, borrowing by businesses and households, leverage in the financial sector, and funding risk. These monitoring efforts inform discussions concerning policies to promote financial stability, such as supervision and regulatory
policies, as well as monetary policy. They also inform Federal Reserve interactions with broader
monitoring efforts, such as those by the FSOC and the Financial Stability Board (FSB).
The Federal Reserve Board publishes its Financial Stability Report semiannually.2 The report summarizes the Board’s framework for assessing the resilience of the U.S. financial system and presents the Board’s current assessment of financial system vulnerabilities. It aims to promote public
understanding about Federal Reserve views on this topic and thereby increase transparency and
accountability. The report complements the annual report of the FSOC, which is chaired by the
Secretary of the Treasury and includes the Federal Reserve Chair and other financial regulators.

Asset Valuation Pressures
Overvalued assets are a vulnerability because the unwinding of high prices can be destabilizing,
especially if the assets are widely held and the values are supported by excessive leverage, maturity transformation, or risk opacity. Moreover, stretched asset valuations are likely to be an indicator of a broader buildup in risk taking.
Nonetheless, it is very difficult to judge whether an asset price is overvalued relative to fundamentals. Accordingly, the Federal Reserve’s analysis of asset valuation pressures typically includes a
broad range of possible valuation metrics and tracks developments in areas in which asset prices
are rising particularly rapidly, unusually high or low price volatility, and investor flows.
Amid persistently high inflation in 2022 and a very tight labor market, monetary policy tightened
and the economic outlook deteriorated. Against this backdrop, yields on long-term Treasury securities rose notably, which, along with diminished risk appetite, contributed to a decline in broad
equity indexes and a widening of corporate credit spreads. The valuation measures tracked for
most corporate financial assets declined toward their historical averages. In contrast, valuation
pressures in real estate remained high.

See Board of Governors of the Federal Reserve System, Financial Stability Report (Washington: Board of Governors,
May 2022), https://www.federalreserve.gov/publications/files/financial-stability-report-20220509.pdf; and Board of Governors of the Federal Reserve System, Financial Stability Report (Washington: Board of Governors, November 2022),
https://www.federalreserve.gov/publications/files/financial-stability-report-20221104.pdf.

109th Annual Report | 2022

More specifically, prices of long-term Treasury

Figure 3.2. Corporate bond spreads to
similar-maturity Treasury securities,
1997–2022

securities and leveraged loans declined over
the year, increasing yields. Spreads of corporate bond yields over comparable-maturity

12
11
10
9
8
7
6
5
4
3
2
1
0

Percentage points

Monthly
Triple-B
(left scale)
High-yield
(right scale)

Dec.

1997

2002

2007

2012

2017

24
22
20
18
16
14
12
10
8
6
4
2
0

2022

Treasury yields widened in the first half of
2022 but slightly narrowed toward the end of
the year, consistent with signs of returning risk
appetite, particularly for speculative-grade corporate bonds (figure 3.2). Amid heightened
uncertainty about the economic outlook,
equity prices declined and the ratio of equity
prices to expected earnings, a key indicator of

Note: The data extend through December 2022. The
triple-B series reflects the options-adjusted spread of
the ICE BofAML triple-B U.S. Corporate Index (C0A4),
and the high-yield series reflects the options-adjusted
spread of the ICE BofAML U.S. High Yield Index
(H0A0).

equity valuations, declined to near its historical median (figure 3.3). Reflecting the considerable uncertainty in the markets, implied
stock price volatility for the S&P 500 index,

Source: ICE Data Indices, LLC, used with permission.

captured by the volatility index (VIX), continued
to remain elevated throughout the year.

Figure 3.3. Aggregate forward price-to-earnings
ratio of S&P 500 firms, 1989–2022

Rising borrowing costs and tightening of
lending standards have put downward pressure on home values, with various house price

Ratio
Monthly

30
27

last summer. Even so, valuation pressures in

the residential real estate sector remained

elevated by historical standards. The price-to-

Median
Dec.

indexes showing small price declines since

rent ratio remained at the upper end of its his-

torical distribution, supported by a tight inven-

tory of homes for sale.

6
1990 1994 1998 2002 2006 2010 2014 2018 2022
Note: The data extend through December 2022.
Based on expected earnings for 12 months ahead.
The median value is 15.5.
Source: Federal Reserve Board staff calculations using
Refinitiv (formerly Thomson Reuters), Institutional Brokers Estimate System estimates.

Commercial real estate (CRE) prices remained
high by historical standards. However, some
signs pointed to easing of valuation pressures
in the CRE sector. The growth rate in CRE
prices slowed markedly across all sectors
because of higher vacancy rates and borrowing costs. Tighter lending standards also

contributed to downward pressure on commercial property prices. Finally, farmland prices continued to increase, supported by high and rising commodity prices.

Financial Stability

Borrowing by Households and Businesses
Excessive borrowing by households and businesses has been an important contributor to past
financial crises. When highly indebted households and nonfinancial businesses are hit by negative
shocks to incomes or asset values, they may be forced to curtail spending, which could then
amplify the effects of financial shocks.
In turn, financial stress among households and businesses can lead to mounting losses at financial institutions, creating an adverse feedback loop in which weaknesses among households, nonfinancial businesses, and financial institutions cause further declines in income and accelerate
financial losses, potentially leading to financial instability and a sharp contraction in economic
activity.
The combined total debt of nonfinancial businesses and households grew roughly in line

Figure 3.4. Private nonfinancial-sector
credit-to-GDP ratio, 1985–2022

with nominal gross domestic product (GDP) in
2022, leaving the credit-to-GDP ratio essen-

Ratio
Quarterly

tially flat and close to its pre-pandemic level
(figure 3.4).

2.0
1.7

1.4

Separating the credit-to-GDP ratio into its business and household components yields some

1.1

additional insights. Business debt relative to
GDP was little changed in 2022. The gross

0.8
1986

1992

1998

2004

2010

2016

2022

leverage of large businesses—the ratio of
debt to assets for all publicly traded nonfinancial firms—declined slightly but remained
elevated by historical standards. In contrast,
net leverage—the ratio of debt less cash to
assets—trended up over the year as businesses started to run down their cash
reserves. The ability of public firms to service

Note: The data extend through 2022:Q4. The shaded
bars indicate periods of business recession as
defined by the National Bureau of Economic Research:
July 1990 to March 1991, March 2001 to November
2001, December 2007 to June 2009, and February
2020 to April 2020. GDP is gross domestic product.
Source: Federal Reserve Board staff calculations
based on Bureau of Economic Analysis, national
income and product accounts, and Federal Reserve
Board, Statistical Release Z.1, “Financial Accounts of
the United States.”

their debt, as measured by the interest coverage ratio, improved, on net, over the year
and remained high by historical standards, in part reflecting solid earnings. The adverse effect of
rising interest rates on the ability of businesses to service their debt was muted, as corporate
bonds—which account for the majority of the debt of public firms—generally have fixed interest
rates. Although businesses with floating-rate obligations experienced significant increases in
interest expenses, earnings were sufficiently strong for most firms to handle these higher interest
payments without stress.

109th Annual Report | 2022

Business credit quality remained solid in 2022. The volume of downgrades and defaults remained
low in the first half of the year. In the second half, default rates edged up and speculative-grade
corporate bond downgrades exceeded upgrades, but they remain low by historical standards.
In the household sector, household debt relative to GDP changed little in 2022. Mortgage debt
accounts for roughly two-thirds of total household debt, with new mortgage extensions skewed
toward prime borrowers in recent years. Most of the remaining one-third of household debt is consumer credit, which consists primarily of student loans, auto loans, and credit card debt. Although
the strength of households’ balance sheets held up through 2022, with still-large buffers of
excess savings, credit card and auto delinquency rates for near-prime and subprime borrowers
increased significantly. This increase is attributed to the unwinding of pandemic support programs
rather than a deterioration in lending standards, which remain conservative. Student loan delinquencies were held down by the extension of the repayment holiday.

Leverage in the Financial System
Figure 3.5. Common equity tier 1 ratio of
banks, 2001–22

During 2022, banks’ common equity tier 1
ratio—a regulatory risk-based measure of

Percent of risk-weighted assets
Q4

Quarterly

bank capital adequacy—remained within the
14
12
10
8

G-SIBs
Large non–G-SIBs
Other BHCs

range that has prevailed since 2010, but it
edged down outside the largest banks, in part
because of stronger loan growth (figure 3.5).

The level of tangible common equity—a

measure of bank capital that excludes intan-

gible items such as goodwill and reflects more

mark-to-market losses—declined considerably

2001 2004 2007 2010 2013 2016 2019 2022

over the year, driven by unrealized losses on

Note: The data, which extend through 2022:Q4, are
seasonally adjusted by Federal Reserve Board staff.
Before 2014:Q1, the numerator of the common equity
tier 1 ratio is tier 1 common capital for advancedapproaches bank holding companies (BHCs) and intermediate holding companies (IHCs) (before 2015:Q1,
for non-advanced-approaches BHCs). Afterward, the
numerator is common equity tier 1 capital. G-SIBs are
global systemically important U.S. banks. Large non-GSIBs are BHCs and IHCs with greater than $100 billion
in total assets that are not G-SIBs. The denominator is
risk-weighted assets. The shaded bars indicate
periods of business recession as defined
by the National Bureau of Economic Research:
March 2001 to November 2001, December 2007 to
June 2009, and February 2020 to April 2020.

securities in the available-for-sale (AFS) port-

Source: Federal Reserve Board, Form FR Y-9C, Consolidated Financial Statements for Holding Companies.

remained strong despite higher rates and eco-

folio as a result of increases in interest
rates.3 Overall, bank profitability continued to
be healthy in 2022, driven by rising net
interest margins and new originations. Strong
profitability bolsters banks’ resilience, as
retained earnings are the most straightforward
way for banks to boost their capital position.
The credit quality of bank assets has
nomic uncertainty. Although delinquencies on

Some large banks, including all global systemically important banks, also must reflect the decline in market value on
their AFS portfolio in their common equity tier 1 regulatory capital ratio.

Financial Stability

nonprime consumer loans increased significantly in 2022, they compose a small share of banks’
loan portfolios.
Outside the banking sector, leverage at large life insurance companies decreased in 2022 to the
middle of its historical distribution. However, life insurance companies continued to increase the
share of assets allocated to risky instruments, which leaves their capital positions vulnerable to
declines in the value of their investments. Based on a number of measures, leverage at hedge
funds during 2022 stood above its historical average.

Funding Risk
High-quality liquid assets held by banks

Figure 3.6. Liquid assets held by banks,
2001–22

declined in 2022, as central bank reserves as
well as Treasury and agency securities
declined from their pandemic-era peaks as a
fraction of total assets. Yet high-quality liquid
assets remained high by historical standards

Percent of assets
Quarterly

32
28

G-SIBs
Large non–G-SIBs
Other BHCs

24
20
16

(figure 3.6). Banks continued to maintain high

12
8

levels of core deposits despite a decline in

corporate operational deposits over the year.
These deposit outflows resulted in only a
slight increase toward the end of the year in
banks’ use of short-term wholesale funding,
which still remained at historically low levels.
A measure of the exposure of banks to
interest rate risk—calculated as the difference
between the effective time to maturity, or next
contractual interest rate adjustment, for bank
assets and liabilities—declined slightly in the

0
2001 2004 2007 2010 2013 2016 2019 2022
Note: The data extend through 2022:Q4. Liquid
assets are cash plus estimates of securities that
qualify as high-quality liquid assets as defined by the
liquidity coverage ratio requirement. Accordingly, Level
1 assets as well as discounts and restrictions on
Level 2 assets are incorporated into the estimate.
G-SIBs are global systemically important U.S. banks.
Large non-G-SIBs are bank holding companies (BHCs)
and intermediate holding companies with greater than
$100 billion in total assets.
Source: Federal Reserve Board, Form FR Y-9C, Consolidated Financial Statements for Holding Companies.

second half of the year but remained near the
top of its historical distribution.
Outside the banking sector, assets under management (AUM) of money market funds (MMFs) grew
rapidly in 2022. Growth in prime MMFs likely reflects faster increases in their yields relative to the
yields of other MMFs and deposit rates, as short-term interest rates have risen. Combined AUM in
other cash-management vehicles—such as offshore prime MMFs, short-term investment funds, private liquidity funds, and ultrashort bond funds—continued to increase and remained high by historical standards. Given their susceptibility to runs and the significant role they play in short-term
funding markets, MMFs and similar cash-management vehicles remain a prominent source of vulnerability.

109th Annual Report | 2022

Amid lower valuations in 2022, the total outstanding amount of corporate bonds held by mutual
funds fell to its lowest level of the past decade. Bond mutual funds experienced net redemptions
throughout the year, which they managed in an orderly manner. In November 2022, the Securities
and Exchange Commission proposed to make swing pricing—a liquidity management tool available
to bond mutual funds—mandatory.4 Swing pricing is intended to reduce investors’ incentives to
redeem from mutual funds in stress by reducing a fund’s share price on days when it has outflows
so that the costs arising from redemptions are imposed on redeeming investors.
Finally, stablecoins experienced significant volatility in 2022, including, in certain cases, runs. The
turmoil was followed by strains throughout the digital assets ecosystem, highlighting vulnerabilities
and interconnections in the space, but did not have notable effects on the traditional financial
system, as interconnections remain limited. Should stablecoins grow or be widely used for payments, risks to financial and payment systems could grow.

Domestic and International Cooperation and Coordination
The Federal Reserve cooperated and coordinated with both domestic and international institutions
in 2022 to promote financial stability.

Financial Stability Oversight Council Activities
As mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act, the FSOC was
created in 2010. The FSOC is chaired by the Secretary of the Treasury and includes the Chair of
the Board of Governors of the Federal Reserve System as a member. It established an institutional framework for identifying and responding to the sources of systemic risk. Through collaborative participation in the FSOC, U.S. financial regulators monitor not only institutions but also the
financial system as a whole. The Federal Reserve, in conjunction with other participants, assists in
monitoring financial risks, analyzing the implications of those risks for financial stability, and identifying steps that can be taken to mitigate those risks. In addition, when an institution is designated
by the FSOC as systemically important, the Federal Reserve assumes responsibility for supervising that institution.
The FSOC continued to serve as a central venue for member agencies to collaborate as well as
discuss and assess financial stability risks. In 2022, the council had four areas of priority: (1) nonbank financial intermediation, (2) Treasury market resilience, (3) climate-related financial risk, and
(4) digital assets.

See Securities and Exchange Commission, Open-End Fund Liquidity Risk Management Programs and Swing Pricing; Form
N-PORT Reporting (Washington: SEC, November 2022), https://www.sec.gov/rules/proposed/2022/33-11130.pdf.

Financial Stability

The council continued to assess vulnerabilities associated with nonbank financial institutions. In
February 2022, the council issued a statement expressing support for continued efforts to
monitor and address vulnerabilities stemming from nonbank financial institutions, focusing on
hedge funds, open-end mutual funds, and MMFs.5 The Hedge Fund Working Group (HFWG) developed an interagency risk-monitoring system to assess the financial stability risks associated with
hedge funds. In addition, in June 2022, the council restarted the Nonbank Mortgage Servicing
Task Force meetings.
The council supports the work of the U.S. Treasury and the Inter-Agency Working Group on
Treasury Market Surveillance (IAWG), of which the Federal Reserve is a member, to strengthen the
resilience of U.S. Treasury markets. The work of the council’s HFWG and Open-end Fund Working
Group is informing the IAWG’s assessment of how funds’ leverage and liquidity risk-management
practices affect the U.S. Treasury market.
Following the publication of its Report on Climate-Related Financial Risk in 2021, the council stood
up its staff-level Climate-related Financial Risk Committee (CFRC) as well as an external advisory
committee, the Climate-related Financial Risk Advisory Committee, which was established in
October 2022.6 The CFRC provides a forum for FSOC members to coordinate and build capacity to
identify, measure, and assess climate-related financial stability risks. Board staff are active participants in each of the CFRC’s working groups.
In October 2022, the council released its Report on Digital Asset Financial Stability Risks and Regulation.7 The report identifies the financial stability risks posed by the digital assets ecosystem as
well as gaps in the regulatory system that should be addressed to manage these risks. Moreover,
the report encourages council members to continue to build capacity to analyze, monitor, supervise, and regulate crypto-asset activities.
The council’s 2022 annual report reviews significant financial market developments, describes
potential emerging threats to U.S. financial stability, identifies vulnerabilities in the financial
system, and makes recommendations to mitigate them.8 The report includes boxes on the following topics: stress in global markets; the rapid rise of mortgage rates; the effect of interest rate
risk on banks, insurance companies, and pension funds; the protection gap and insurance; recent

See Financial Stability Oversight Council, “Financial Stability Oversight Council Statement on Nonbank Financial Intermediation” (Washington: FSOC, February 4, 2022), https://home.treasury.gov/system/files/261/
FSOC_Nonbank_Financial_Intermediation.pdf.
See Financial Stability Oversight Council, Report on Climate-Related Financial Risk (Washington: FSOC, October 2021),
https://home.treasury.gov/system/files/261/FSOC-Climate-Report.pdf.
See Financial Stability Oversight Council, Report on Digital Asset Financial Stability Risks and Regulation (Washington:
FSOC, October 2022), https://home.treasury.gov/system/files/261/FSOC-Digital-Assets-Report-2022.pdf.
See Financial Stability Oversight Council, Annual Report (Washington: FSOC, 2022), https://home.treasury.gov/system/
files/261/FSOC2022AnnualReport.pdf.

109th Annual Report | 2022

developments in commodities markets; cyber-risk data collection; and the use of artificial intelligence in financial services.

Financial Stability Board Activities
In light of the interconnected global financial system and the global activities of large U.S. financial institutions, the Federal Reserve participates in international bodies, such as the FSB. The
FSB monitors the global financial system and promotes international financial stability by coordinating with national financial authorities and international standard-setting bodies on information
exchanges and work focused on developing strong global financial-sector policies.
In 2022, the FSB engaged in many issues related to global financial stability. Specific work
included assessing liquidity mismatch in open-ended funds; evaluating financial stability risks of
digital assets and decentralized finance and developing high-level policy recommendations to
address them; researching the availability and use of climate vulnerabilities data; and assessing
financial stability risk of—and the implications of changes in—commodities markets.

Supervision and Regulation

The Federal Reserve promotes a safe, sound, and efficient banking and financial system that supports the growth and stability of the U.S. economy. The Federal Reserve carries out its supervisory
and regulatory responsibilities and supporting functions primarily by
• supervising the activities of financial institutions to promote their safety and soundness (see figure 4.1);
• developing regulatory policy (rulemakings,
supervision and regulation letters, policy
statements, and guidance) and acting on
applications filed by banking organizations; and
• monitoring trends in the banking sector by
collecting and analyzing data (see box 4.1).

Box 4.1. Banking Sector
Conditions
For information on banking sector conditions,
see the Supervision and Regulation Report,
which is submitted semiannually to the
Senate Committee on Banking, Housing, and
Urban Affairs and to the House Committee on
Financial Services. The reports are available
on the Board’s website at https://
www.federalreserve.gov/publications/
supervision-and-regulation-report.htm.

Figure 4.1. The Federal Reserve oversees a broad range of financial entities
Bank holding companies constitute the largest segment of institutions supervised by the Federal Reserve, but the Federal Reserve also supervises state member banks, savings and loan holding companies, foreign banks operating in the
United States, and other entities. See “Supervised and Regulated Institutions” in this section.

Bank holding
companies
(3,848)

State
member
banks
(701)

Savings and loan
holding companies (296)
Foreign banking organizations
operating in the U.S. (131)
State member banks’
foreign branches (45)
Edge Act and agreement
corporations¹ (32)
Designated ﬁnancial
market utilities (8)

Edge Act and agreement corporations are subsidiaries of banks or bank holding companies, organized to allow international banking and financial business.

109th Annual Report | 2022

Supervised and Regulated Institutions
The Federal Reserve categorizes banking organizations into portfolios by size and entity type, as
described in table 4.1.

State Member Banks
At year-end 2022, a total of 1,420 banks (excluding non-depository trust companies and private
banks) were members of the Federal Reserve System, of which 701 were state chartered. Federal
Reserve System member banks operated 47,297 branches and accounted for 34 percent of all
commercial banks in the United States and 68 percent of all commercial banking offices. Statechartered commercial banks that are members of the Federal Reserve, commonly referred to as
state member banks, represented approximately 16 percent of all insured U.S. commercial banks
and held approximately 18 percent of all insured commercial bank assets in the United States.

Table 4.1. Summary of supervised institutions
Portfolio
Large Institution Supervision
Coordinating Committee (LISCC)
State member banks (SMBs)
Large and foreign banking
organizations (LFBOs)

Definition
Eight U.S. global systemically important banks (G-SIBs)
SMBs within LISCC organizations
Non-LISCC U.S. firms with total assets $100 billion and
greater and FBOs

Number of
institutions
8

Total assets
($ trillions)
14.3

1.1

170

10.2

Large banking organizations (LBOs)

Non-LISCC U.S. firms with total assets $100 billion and greater

5.1

Large FBOs (with IHC)

FBOs with combined U.S. assets $100 billion and greater

3.1

Large FBOs (without IHC)

FBOs with combined U.S. assets $100 billion and greater

Small FBOs (excluding rep offices)

FBOs with combined assets less than $100 billion

Small FBOs (rep offices)
State member banks
Regional banking organizations
(RBOs)
State member banks
Community banking organizations
(CBOs)
State member banks
Insurance and commercial savings
and loan holding companies (SLHCs)

1.0

102

1.0

FBO U.S. representative offices

0.0

SMBs within LFBO organizations

1.3

102*

2.8

1.0

3,504**

2.9

655

0.6

Total assets between $10 billion and $100 billion
SMBs within RBO organizations
Total assets less than $10 billion
SMBs within CBO organizations
SLHCs primarily engaged in insurance or commercial activities

* Includes 101 holding companies and 1 state member bank that does not have a holding company.
** Includes 3,451 holding companies and 53 state member banks that do not have holding companies.

6 insurance
4 commercial

0.9

Supervision and Regulation

Bank Holding Companies
At year-end 2022, a total of 3,848 U.S. bank holding companies (BHCs) were in operation, of
which 3,450 were top-tier BHCs. These organizations controlled 3,512 insured commercial banks
and held approximately 93 percent of all insured commercial bank assets in the United States.
BHCs that meet certain capital, managerial, and other requirements may elect to become financial
holding companies (FHCs). FHCs can generally engage in a broader range of financial activities
than other BHCs. As of year-end 2022, a total of 505 domestic BHCs and 46 foreign banking organizations had FHC status. Of the domestic FHCs, 23 had consolidated assets of $100 billion or
more; 56 between $10 billion and $100 billion; 193 between $1 billion and $10 billion; and
233 less than $1 billion.

Savings and Loan Holding Companies
At year-end 2022, a total of 296 savings and loan holding companies (SLHCs) were in operation,
of which 152 were top-tier SLHCs. These SLHCs controlled 160 depository institutions. Approximately 93 percent of SLHCs engage primarily in depository or broker-dealer activities. These firms
hold approximately 50 percent ($887.7 billion) of the total combined assets of all SLHCs. The
Office of the Comptroller of the Currency (OCC) or the Federal Deposit Insurance Corporation
(FDIC) is the primary federal regulator for subsidiary savings associations of SLHCs. Some SLHCs
are engaged primarily in nonbanking activities, such as insurance underwriting (6 SLHCs), and
commercial activities (4 SLHCs). The 25 largest SLHCs accounted for more than $1.7 trillion of
total combined assets.
Depository institution holding companies significantly engaged in insurance activities. At
year-end 2022, the Federal Reserve supervised six companies that own depository institutions but
are significantly engaged in insurance activities. All six of these institutions were SLHCs. As of
September 30, 2022, they had approximately $800 billion in total assets. Three of these firms
have total assets greater than $100 billion, and for five of the six, insured depository assets represent less than half of total assets.
In 2022, the Federal Reserve proposed and finalized a supervisory framework for insurance organizations that are overseen by the Board. The supervisory framework consists of a risk-based
approach to supervisory expectations and activities; a unique supervisory ratings system; and reliance, to the fullest extent possible, on the work performed by other relevant supervisors, including
the state insurance regulators.
The Federal Reserve’s Insurance Policy Advisory Committee (IPAC) was established by the Economic Growth, Regulatory Relief, and Consumer Protection Act to provide information, advice, and

109th Annual Report | 2022

recommendations on insurance issues.1 In 2022, the IPAC completed its study of the potential
impact of the International Association of Insurance Supervisors’ Insurance Capital Standard (ICS)
on the U.S. life insurance industry, policyholders, and markets. The IPAC provided input on the proposed criteria for comparing the ICS to the Aggregation Method, which is being developed by the
United States. The IPAC offered comments on the Federal Reserve’s proposed framework for the
supervision of insurance organizations and the impact of climate risk on the insurance industry.

Financial Market Utilities
Financial market utilities (FMUs) manage or operate multilateral systems for the purpose of transferring, clearing, or settling payments, securities, or other financial transactions among financial
institutions or between financial institutions and the FMU. The Federal Reserve supervises FMUs
that are chartered as member banks or Edge Act corporations, and coordinates with other federal
banking supervisors to supervise FMUs considered bank service providers under the Bank Service
Company Act.
In July 2012, the Financial Stability Oversight Council voted to designate eight FMUs as systemically important under title VIII of the Dodd-Frank Wall Street Reform and Consumer Protection Act
(Dodd-Frank Act). As a result of these designations, the Board assumed an expanded set of
responsibilities related to these designated FMUs that includes promoting uniform riskmanagement standards, playing an enhanced role in the supervision of designated FMUs, reducing
systemic risk, and supporting the stability of the broader financial system. For certain designated
FMUs, the Board established risk-management standards and expectations that are articulated in
the Board’s Regulation HH.
In addition to setting minimum risk-management standards, Regulation HH establishes advance
notice requirements for proposed material changes to the rules, procedures, or operations of a
designated FMU for which the Board is the supervisory agency under title VIII. Finally, Regulation
HH also establishes minimum conditions and requirements for a Federal Reserve Bank to establish and maintain an account for, and provide services to, a designated FMU.2 Where the Board is
not the title VIII supervisory agency, the Federal Reserve works closely with the Securities and
Exchange Commission (SEC) and the Commodity Futures Trading Commission to promote robust
FMU risk management and monitor systemic risks across the designated FMUs.
In 2022, the Board invited comment on proposed amendments related to operational risk management in Regulation HH.3 The proposal would update, refine, and add specificity to the operational
risk-management requirements in Regulation HH to reflect changes in the operational risk, tech-

1
2
3

More information on the IPAC can be found at https://www.federalreserve.gov/aboutthefed/ipac.htm.
The Federal Reserve Banks maintain accounts for and provide services to several designated FMUs.
See press release at https://www.federalreserve.gov/newsevents/pressreleases/bcreg20220923a.htm.

Supervision and Regulation

nology, and regulatory landscapes in which designated FMUs operate since the Board last
amended this regulation in 2014. The proposal would also adopt specific incident-notification
requirements.

International Activities
Foreign operations of U.S. banking organizations. At the end of 2022, a total of 23 member
banks were operating 285 branches in foreign countries and overseas areas of the United States.
Eleven national banks were operating 228 of these branches, 12 state member banks were operating 45 of these branches, and 5 nonmember banks were operating the remaining 12.
Edge Act and agreement corporations. At year-end 2022, out of 32 banking organizations chartered as Edge Act or agreement corporations, 3 operated 6 Edge Act and agreement branches.
These corporations are examined annually.
U.S. activities of foreign banks. As of year-end 2022, a total of 131 foreign banks from 48 countries operated 140 state-licensed branches and agencies, of which 6 were insured by the FDIC,
and 49 OCC-licensed branches and agencies, of which 4 were insured by the FDIC. These foreign
banks also owned 6 Edge Act and agreement corporations. In addition, they held a controlling
interest in 32 U.S. commercial banks. Altogether, the U.S. offices of these foreign banks controlled approximately 17 percent of U.S. commercial banking assets. These 131 foreign banks
also operated 89 representative offices; an additional 35 foreign banks operated in the United
States through a representative office.
The Federal Reserve conducted or participated with state and federal regulatory authorities in
691 examinations of foreign banks in 2022.

Supervisory Developments
Supervisory and Regulatory Initiatives
The Federal Reserve’s supervision activities include examinations and inspections to ensure that
financial institutions operate in a safe and sound manner and comply with laws and regulations,
including consumer protection. These include an assessment of a financial institution’s riskmanagement systems, financial conditions, governance and controls, and compliance. The Federal
Reserve tailors its supervisory approach based on the size and complexity of firms. Supervisory
oversight ranges from a continuous supervisory presence with dedicated teams of examiners for
large firms to regular point-in-time and targeted periodic examinations for small, noncomplex firms.
Supervisory priorities are focused on both previously identified supervisory findings and emerging
concerns arising from changing economic conditions. Examiners monitor and assess a supervised

109th Annual Report | 2022

Table 4.2. Savings and loan holding companies, 2018–22
Entity/item

2022

2021

2020

2019

2018

Top-tier savings and loan holding companies
Assets of more than $1 billion
Total number

1,741

1,856

2,026

1,822

1,615

Number of inspections

By Federal Reserve System

102

107

119

134

139

Total assets (billions of dollars)

Number of inspections

102

107

By Federal Reserve System

102

107

Total assets (billions of dollars)

Assets of $1 billion or less
Total number

institution’s remediation of supervisory findings in areas such as independent risk management
and controls, compliance, operational and cyber resilience, and information technology.
In 2022, the Federal Reserve conducted 289 examinations of state member banks, 2,590 inspections of bank holding companies, and 124 inspections of savings and loan holding companies.
Tables 4.2 and 4.3 provide information on examinations and inspections conducted by the Federal
Reserve during the past five years.

Specialized Examinations
The Federal Reserve conducts specialized examinations of supervised financial institutions in the
areas of capital planning and stress testing, information technology, fiduciary activities, transfer
agent activities, government and municipal securities dealing and brokering, and cybersecurity and
critical infrastructure. The Federal Reserve also conducts specialized examinations of certain nonbank entities that extend credit subject to the Board’s margin regulations.
Capital Planning and Stress Testing
Since the 2007–09 financial crisis, the Federal Reserve has instituted supervisory stress testing
to strengthen capital positions of the largest banking organizations. In March 2020, the Board
integrated the supervisory stress test with its non-stress capital requirements through the stress
capital buffer to form one forward-looking and risk-sensitive capital framework.
In June 2022, the Federal Reserve conducted its annual stress test, which showed that the large
banking firms tested had sufficient levels of capital and could continue lending to households and
businesses during a severe recession. In August 2022, the Federal Reserve announced the individual capital requirements for large banks, which include the stress capital buffer requirement

Supervision and Regulation

Table 4.3. State member banks and bank holding companies, 2018–22
Entity/item

2022

2021

2020

2019

2018

701

705

734

754

794

3,997

4,016

3,568

2,642

2,851

524

471

502

554

563

By Federal Reserve System

289

288

263

327

321

By state banking agency

235

183

239

227

242

State member banks
Total number
Total assets (billions of dollars)
Number of examinations

Top-tier bank holding companies
Assets of more than $1 billion
Total number
Total assets (billions of dollars)
Number of inspections
By Federal Reserve System1
By state (or other) banking agency

809

795

746

631

604

25,275

25,185

23,811

20,037

19,233

966

996

875

805

549

891

919

814

761

533

2,672

2,762

2,887

3,094

3,273

883

900

883

870

893

1,768

1,801

1,967

2,122

2,216

1,699

1,727

1,890

2,033

2,132

505

504

502

493

490

Assets of $1 billion or less
Total number
Total assets (billions of dollars)
Number of inspections
By Federal Reserve System
By state (or other) banking agency
Financial holding companies
Domestic
Foreign
1

For bank holding companies subject to continuous, risk-focused supervision, includes multiple targeted reviews.

based on the results of the 2022 stress test. These requirements became effective as of October
1, 2022. For stress testing publications released in 2022, see box 4.2.
Fiduciary Activities
In 2022, Federal Reserve examiners conducted 83 fiduciary examinations of state member banks
and non-depository trust companies.
Transfer Agents
During 2022, the Federal Reserve conducted transfer agent examinations at three state member
banks and three BHCs that were registered as transfer agents.
Government and Municipal Securities Dealers and Brokers
The Federal Reserve is responsible for examining state member banks and foreign banks for compliance with the Government Securities Act of 1986 and with the U.S. Treasury regulations

109th Annual Report | 2022

governing dealing and brokering in government

Box 4.2. Stress Testing
Publications Released in
2022
More details on the 2022 stress test scenarios are available at https://
www.federalreserve.gov/newsevents/
pressreleases/files/bcreg20220210a1.pdf.
More details on the 2022 stress test model
methodologies are available at https://
www.federalreserve.gov/publications/files/
2022-march-supervisory-stress-testmethodology.pdf.

securities. During 2022, the Federal Reserve
conducted five examinations of government
securities activities at these organizations.
The Federal Reserve is also responsible for
ensuring that state member banks and BHCs
that act as municipal securities dealers
comply with the Securities Act Amendments of
1975. Municipal securities dealers are examined, pursuant to the Municipal Securities
Rulemaking Board’s rule G-16, at least once

More details on the 2022 stress test results
are available at https://
www.federalreserve.gov/publications/files/
2022-dfast-results-20220623.pdf.
More details on the stress capital buffer
requirements published in 2022 are available
at https://www.federalreserve.gov/
publications/files/large-bank-capitalrequirements-20220804.pdf.

every two calendar years. During 2022, the
Federal Reserve examined four entities that
dealt in municipal securities.
Securities Credit Lenders
Under the Securities Exchange Act of 1934,
the Board is responsible for regulating credit
in certain transactions involving the purchasing or carrying of securities. As part of its

general examination program, the Federal Reserve examines the banks under its jurisdiction for
compliance with the Board’s Regulation U. In addition, the Federal Reserve maintains a registry of
persons other than banks, brokers, and dealers who extend credit subject to Regulation U.
Throughout the year, Federal Reserve examiners conducted specialized examinations of these
lenders if they are not already subject to supervision by the Farm Credit Administration or the
National Credit Union Administration (NCUA).

Operational Resilience, Information Technology, and Cybersecurity
Effective operational risk management and resilience are vital to the safety and soundness of
financial institutions and the stability of the U.S. financial system.4 The Federal Reserve provides
tools and educational resources to assist supervised institutions in managing such risks.
• In April 2022, the Board’s, the FDIC’s, and the OCC’s computer-security incident notification rule
took effect.5 The federal banking agencies jointly hosted an “Ask the Regulator” session on the
rule for the industry.

4
5

Operational risk management includes risk management of information technology, cyber, and third-party risks.
See https://www.federalreserve.gov/supervisionreg/srletters/SR2204.htm.

Supervision and Regulation

• The Federal Reserve, together with the other members of the Federal Financial Institutions
Examination Council (FFIEC), published an updated Cybersecurity Resource Guide for Financial
Institutions in October 2022 to help financial institutions respond to cyber incidents.6
The Federal Reserve examined and monitored supervised institutions for operational risks as part
of its safety and soundness supervision.
• In 2022, Federal Reserve examiners, in close coordination with the other federal banking agencies, conducted examinations of IT activities (inclusive of cyber risk-management activities) and
targeted cybersecurity assessments of the large financial institutions, and service providers.
• Federal Reserve examiners also conducted tailored cybersecurity assessments at community
and regional banking organizations.
• Under the authority of the Bank Service Company Act, the federal banking agencies examined
technology service providers that provide services for specific regulated financial institutions.
The Federal Reserve, as part of the FFIEC, also published interagency statements and guidance to
assist examiners with risk-management assessments at supervised entities.
• The FFIEC issued a “Statement of Principles on Examination Information Requests,” which outlines best practices for requesting examination information from supervised entities, and a
common authentication solution for secure access to the FFIEC members’ supervision systems.
• In August 2022, the FFIEC IT Subcommittee sponsored its annual IT Conference virtually for
examiners, highlighting current and emerging technology issues affecting supervised
institutions.
The Federal Reserve collaborated with other financial regulators, private industry, and international
partners to promote effective safeguards against operational and cyber risks to the financial services sector and its critical infrastructure. This includes participation in the FFIEC’s Cybersecurity
and Critical Infrastructure Subcommittee, the Financial and Banking Information Infrastructure
Committee, the Department of Homeland Security’s Cybersecurity and Infrastructure Security
Agency Cyber Incident Reporting Council, and the Cybersecurity Forum for Independent and Executive Branch Regulators.
The Board led or contributed to cybersecurity activities undertaken by various international groups.

The FFIEC is an interagency body of financial regulatory agencies established to prescribe uniform principles, standards,
and report forms and to promote uniformity in the supervision of financial institutions. The council has six voting members: the Board of Governors of the Federal Reserve System, the FDIC, the NCUA, the OCC, the Consumer Financial Protection Bureau (CFPB), and the chair of the State Liaison Committee.

109th Annual Report | 2022

• In 2022, the Federal Reserve, as part of a the G7 Cyber Expert Group, contributed to the publication of two reports addressing fundamental elements of ransomware and third-party risk
within the financial sector.7
• The Board also continued to participate in the work of the Financial Stability Board (FSB), which
resulted in the publication of a consultive document, “Achieving Greater Convergence in Cyber
Incident Reporting.”8

Crypto-Related Activities
Crypto-assets present opportunities to banking organizations, their customers, and the overall
financial system, but also pose multiple IT and operations risks as well as anti-money-laundering,
consumer protection and compliance, and financial stability risks.9 Therefore, in 2022, the Federal
Reserve issued SR letter 22-6/CA letter 22-6, “Engagement in Crypto-Asset-Related Activities by
Federal Reserve-Supervised Banking Organizations” to address Federal Reserve-supervised
banking organizations’ engagement in crypto-asset-related activities.10 The letter establishes the
expectation that supervised banking organizations determine the legality of engaging in cryptorelated activities. Notify the Federal Reserve prior to engaging in any crypto-asset-related activity.

Climate-Related Financial Risks
The Federal Reserve Board is working to build the resilience of large financial institutions to the
financial risks of climate change. In 2022, the Board identified two, near-term supervisory priorities around climate-related financial risks. On September 29, 2022, the Board announced that six
of the nation’s largest banks will participate in a pilot climate scenario analysis exercise designed
to enhance the ability of supervisors and firms to measure and manage climate-related financial
risks. On December 2, 2022, the Board invited comment on proposed guidance for the management of climate-related financial risks for banks with more than $100 billion in total consolidated
assets. The Board intends to work with the OCC and FDIC in issuing any final guidance after
reviewing comments received.

Enforcement Actions
The Federal Reserve has enforcement authority over the financial institutions it supervises and
their affiliated parties. Enforcement actions may be taken to address unsafe or unsound practices
and violations of law or regulation. Formal enforcement actions include cease and desist orders,
written agreements, prompt corrective action directives, removal and prohibition orders, civil
money penalties, and letters sent pursuant to 12 U.S.C. § 1829, known as Section 19 letters.
7

8
9
10

See https://www.bundesbank.de/resource/blob/745304/67440393f3e0b53ea417c874eafe14e7/mL/2022-10-13g7-fundamental-elements-ransomware-data.pdf and https://www.bundesbank.de/resource/blob/764692/
01503c2cb8a58e44a862bee170d34545/mL/2018-10-24-g-7-fundamental-elements-for-third-party-cyber-risk-data.pdf.
See https://www.fsb.org/2022/10/fsb-makes-proposals-to-achieve-greater-convergence-in-cyber-incident-reporting/.
A crypto-asset generally refers to any digital asset implemented using cryptographic techniques.
See https://www.federalreserve.gov/supervisionreg/srletters/SR2206.htm.

Supervision and Regulation

In 2022, the Federal Reserve completed 41 formal enforcement actions. Civil money penalties
totaling $30,450,400 were assessed. As directed by statute, all civil money penalties are remitted
to either the U.S. Treasury or the Federal Emergency Management Agency. The Reserve Banks
completed 43 informal enforcement actions. Informal enforcement actions include memoranda of
understanding, commitment letters, supervisory letters, and board of directors’ resolutions.
Enforcement orders and prompt corrective action directives, which are issued by the Board, and
written agreements, which are executed by the Reserve Banks, are made public and are posted on
the Board’s website (https://www.federalreserve.gov/apps/enforcementactions/search.aspx).
Other Laws and Regulation Enforcement Activity/Actions
The Federal Reserve’s enforcement responsibilities also extend to the disclosure of financial information by state member banks and the use of credit to purchase and carry securities.
Financial Disclosures by State Member Banks
Under the Securities Exchange Act of 1934 and the Federal Reserve’s Regulation H, certain state
member banks are required to make financial disclosures to the Federal Reserve using the same
reporting forms that are normally used by publicly held entities to submit information to the SEC.11
In 2022, one state member bank was required to submit data to the Federal Reserve. The information submitted by this one state member bank is available to the public upon request and is primarily used for disclosure to the bank’s shareholders and public investors.

Internal Appeals of Material Supervisory Determinations
The Board is committed to maintaining an independent, intra-agency process to review appeals of
material supervisory determinations (MSD) that complies with section 309 of the Riegle Community Development and Regulatory Improvement Act of 1994.12 The appeals process includes two
levels of review. A panel for Reserve Bank staff who are not employed by the Reserve Bank with
supervisory responsibility of the financial institution that issued the appealed MSD conducts the
initial review. This panel determines whether the appealed MSD is consistent with applicable laws,
regulations, and policy, and is supported by a preponderance of the evidence in the record. If the
appealing institution is dissatisfied with the initial review panel’s decision, the institution may
request a final review of the MSD. A panel of senior Board staff conducts the final review. The final
review panel determines whether the decision of the initial review panel is reasonable. Additional

Under section 12(g) of the Securities Exchange Act, certain companies that have issued securities are subject to SEC
registration and filing requirements that are similar to those that apply to public companies. Per section 12(i) of the
Securities Exchange Act, the powers of the SEC over banking entities that fall under section 12(g) are vested with the
appropriate banking regulator. Specifically, state member banks with 2,000 or more shareholders and more than
$10 million in total assets are required to register with, and submit data to, the Federal Reserve. For more information
on the Board’s Regulation H policy action, see appendix E, “Record of Policy Actions.”
U.S.C. § 4806.

109th Annual Report | 2022

information is available regarding the Federal Reserve Board’s appeals process (https://
www.federalreserve.gov/supervisionreg/srletters/SR2028.htm) and Ombuds policy (https://
www.federalreserve.gov/aboutthefed/ombpolicy.htm).
In 2022, the Board received one MSD appeal from a state member community banking organization that later withdrew the appeal, as the matter was resolved informally with assistance from the
Ombuds Office.

Assessments for Supervision and Regulation
BHCs and SLHCs with total consolidated assets of $100 billion or more as well as any nonbank
financial companies designated by the Financial Stability Oversight Council for supervision by the
Board, are subject to assessments for the cost of the Board’s supervision and regulation. As a
collecting entity, the Board does not recognize the supervision and regulation assessments as revenue nor does the Board use the collections to fund Board expenses; the funds are transferred to
the U.S. Treasury. The Board collected and transferred $686.2 million in 2022 for the 2021 supervision and regulation assessment.

Training and Technical Assistance
The Federal Reserve provides training and technical assistance to foreign supervisors and
minority-owned depository institutions as well as engages in industry outreach in connection with
supervisory objectives.
Current Expected Credit Losses Implementation
The Financial Accounting Standards Board issued an accounting standard in 2016 that overhauls
the accounting for credit losses with a new impairment model based on the Current Expected
Credit Losses (CECL) methodology. Approximately 200 banking organizations adopted the CECL
methodology in 2020. Remaining banking organizations will adopt throughout 2023. CECL’s implementation affects a broad range of supervisory activities, including regulatory reports, examinations, and examiner training.
In 2022, the Federal Reserve released a second tool to help community banks implement the
CECL accounting standard. Known as the Expected Losses Estimator, or ELE, the spreadsheetbased tool utilizes a financial institution’s loan-level data and management assumptions to aid
community financial institutions in calculating their CECL allowances. The launch of the ELE tool
builds on the Federal Reserve’s previous release of the Scaled CECL Allowance for Losses Estimator, or SCALE, tool to also help community financial institutions implement the CECL accounting
standard. Together, the ELE and SCALE tools provide two simplified approaches to CECL calculations for smaller community financial institutions.

Supervision and Regulation

International Training and Technical Assistance
In 2022, the Federal Reserve continued to provide training and technical assistance on supervisory matters to foreign central banks and supervisory authorities. Technical assistance normally
involves visits by Federal Reserve staff members to foreign authorities as well as consultations
with foreign supervisors who visit the Board of Governors or the Reserve Banks. Due to pandemic
restrictions, the Federal Reserve offered its training programs only virtually during the first half of
the year and resumed in-person training during the second half of the year for the benefit of foreign supervisory authorities. Approximately 1,900 bank supervisors from foreign central banks
and supervisory agencies attended these virtual and in-person training events during 2022.
Federal Reserve staff also took part in organizing with the International Monetary Fund and the
World Bank a total of two training events for senior supervisory officials, one a virtual conference
and the other an in-person training seminar. Other training partners that collaborated with the Federal Reserve during 2022 to organize a total of 23 regional virtual and in-person training events
included the Association of Bank Supervisors of the Americas, the National Banking and Securities Commission of Mexico, and Banco de Portugal.
Efforts to Support Minority-Owned Depository Institutions
The Federal Reserve System implements its responsibilities under section 367 of the Dodd-Frank
Act primarily through its Partnership for Progress (PFP) program.13 Established in 2008, this program promotes the viability of minority depository institutions (MDIs) by facilitating activities
designed to strengthen their business strategies, maximize their resources, and increase their
awareness and understanding of supervisory expectations. The Federal Reserve has also taken
MDIs into consideration when developing crisis response facilities. For example, Federal Reserve
staff reached out to MDIs to learn more about the impact of the COVID event on the communities
they serve as well as to gather input on how crisis response facilities could be most helpful to
these institutions and their customers.
In addition, the Federal Reserve continues to maintain the PFP website, which supports MDIs by providing them with technical information and links to useful resources (https://www.fedpartnership.gov).
Representatives from each of the 12 Federal Reserve Districts, along with staff from the Divisions
of Supervision & Regulation and Consumer & Community Affairs at the Board of Governors, continue to offer technical assistance tailored to MDIs by providing targeted supervisory guidance,
identifying additional resources, and fostering mutually beneficial partnerships between MDIs and

Section 367 of the Dodd-Frank Act requires the Board to submit an annual report to the Congress detailing the actions
taken to fulfill the requirements outlined in section 308 of the Financial Institutions Reform, Recovery, and Enforcement
Act (FIRREA) of 1989, as amended by the Dodd-Frank Act in 2010 (see appendix A). In addition to the annual reporting
requirement, FIRREA section 308 requires the Federal Reserve System to devote efforts toward preserving and promoting minority ownership of MDIs.

109th Annual Report | 2022

community organizations. As of year-end 2022, the Federal Reserve’s MDI portfolio consisted of
13 state member banks.
Throughout 2022, the System supported MDIs and conducted a number of outreach initiatives,
webinars, and conferences specific to MDIs, including the following:
• Interagency listening sessions: In the fall of 2022, the Board, FDIC, and OCC jointly hosted an
interagency listening sessions series titled, “Bridging the Gap: Assessing the Evolving Needs of
Mission-Driven Banks.” All MDIs and CDFI banks were invited to provide insights on current challenges and opportunities in their industry, and suggestions as to how the regulators can provide
support.
• Minorities in Banking Forum: In September 2022, the Federal Reserve System sponsored the
seventh annual Banking and the Economy: A Forum for Minorities in Banking at the Federal
Reserve Bank of Atlanta and virtually. The forum gathered minority professionals in middle to
senior management in the banking and financial services sectors nationwide.
• Designation of a new state member MDI: In December 2022, the Board and Federal Reserve
Bank of Atlanta recognized a new MDI, Anchor Bank in Palm Beach Gardens, Florida. This
increases the number of Federal Reserve-regulated MDIs to 14.
• Conference speeches: In the fall of 2022, two Federal Reserve governors attended MDI conferences and gave public remarks:
– Governor Lisa Cook attended the National Bankers Association annual meeting in
October 2022 in Washington, D.C.
– Governor Michelle Bowman attended “The Future of Minority Depository Institutions: MDI Connectech Initiative” in November 2022 in Washington, D.C.
• Research: PFP staff coordinated with Reserve Bank staff to encourage new research on MDIs
and the communities they serve.
• Outreach: Throughout 2022, PFP staff discussed formation of de novo banks with several different investor groups.
• Emergency Capital Investment Program (ECIP): PFP staff coordinated with Reserve Bank staff to
provide consultation to the U.S. Treasury on Federal Reserve-supervised ECIP applicants.

International Engagement
As a member of the FSB and several international financial standard-setting bodies, the Federal
Reserve actively participates in efforts to share information and advance sound supervisory policies for internationally active financial organizations and to enhance the strength, stability, and
resilience of the international financial system.

Supervision and Regulation

Financial Stability Board
In 2022, the Federal Reserve continued its participation in a variety of activities of the FSB, an
organization whose mission is to promote international financial stability. The FSB helps coordinate the work of national financial authorities and international standard-setting bodies and
shares information on supervisory and regulatory practices. Priority areas for the year included
developing principles for regulating and supervising crypto-assets and stablecoins, enhancing the
resilience of nonbank financial intermediation, aligning practices regarding cyber incident
reporting, and monitoring the transition of financial benchmarks away from LIBOR. The full range of
the Federal Reserve’s FSB activities is discussed in section 3, “Financial Stability.”
The FSB also produces a variety of publications, including progress reports, monitoring reports,
guidance, consultative documents, and compendia of better practice. Examples issued in
2022 include
• Assessment of Risks to Financial Stability from Crypto-Assets (issued in February and available at
https://www.fsb.org/2022/02/assessment-of-risks-to-financial-stability-from-crypto-assets/)
• FSB Roadmap for Addressing Financial Risks from Climate Change: 2022 Progress Report (issued
in July and available at https://www.fsb.org/2022/07/fsb-roadmap-for-addressing-financialrisks-from-climate-change-2022-progress-report/)
• Review of the FSB High-Level Recommendations of the Regulation, Supervision and Oversight of
“Global Stablecoin” Arrangements: Consultative Report (issued in October and available at
https://www.fsb.org/2022/10/review-of-the-fsb-high-level-recommendations-of-the-regulationsupervision-and-oversight-of-global-stablecoin-arrangements-consultative-report/)
• International Regulation of Crypto-Asset Activities: A Proposed Framework – Questions for Consultation (issued in October and available at https://www.fsb.org/2022/10/internationalregulation-of-crypto-asset-activities-a-proposed-framework-questions-for-consultation/)
• Supervisory and Regulatory Approaches to Climate-Related Risks: Final Report (issued in October
and available at https://www.fsb.org/2022/10/supervisory-and-regulatory-approaches-toclimate-related-risks-final-report/)
• Progress Report on Climate-Related Disclosures (issued in October and available at
https://www.fsb.org/2022/10/progress-report-on-climate-related-disclosures/)
• Achieving Greater Convergence in Cyber Incident Reporting – Consultative Document (issued in
October and available at https://www.fsb.org/2022/10/achieving-greater-convergence-in-cyberincident-reporting-consultative-document/)
• Climate Scenario Analysis by Jurisdictions: Initial Findings and Lessons (issued in November and
available at https://www.fsb.org/2022/11/climate-scenario-analysis-by-jurisdictions-initialfindings-and-lessons/)

109th Annual Report | 2022

• Progress Report on LIBOR and Other Benchmarks Transition Issues: Reaching the Finishing Line
of LIBOR Transition and Securing Robust Reference Rates for the Future (issued in December
and available at https://www.fsb.org/2022/12/progress-report-on-libor-and-other-benchmarkstransition-issues-2022/)
A comprehensive list of FSB publications is available at https://www.fsb.org/publications.
Basel Committee on Banking Supervision
During 2022, the Federal Reserve contributed to Basel Committee on Banking Supervision (BCBS)
supervisory policy recommendations, reports, papers, and consultations designed to improve the
supervision of banking organizations’ practices and to address specific issues that emerged
during the 2007–09 financial crisis and, more recently, the COVID event.14 In 2022, the BCBS was
particularly focused on crypto-assets and crypto markets (this included issuing a final consultation
on the prudential treatment of crypto-assets), an evaluation of the effectiveness of Basel III
reforms, capital buffers, climate-related financial risks, credit risk, margining practices, COVID-19,
and operational risk and resilience.
Examples of final BCBS documents issued in 2022 include
• Newsletter on Covid-19 Related Credit Risk Issues (issued in March and available at https://
www.bis.org/publ/bcbs_nl26.htm)
• Newsletter on Artificial Intelligence and Machine Learning (issued in March and available at
https://www.bis.org/publ/bcbs_nl27.htm)
• Newsletter on Third- and Fourth-Party Risk Management and Concentration Risk (issued in March
and available at https://www.bis.org/publ/bcbs_nl28.htm)
• Newsletter on Credit Risk: Real Estate and Leveraged Lending (issued in August and available at
https://www.bis.org/publ/bcbs_nl29.htm)
• Review of Margining Practices (issued in September and available at https://www.bis.org/bcbs/
publ/d537.htm)
• Basel III Monitoring Report (issued in September and available at https://www.bis.org/bcbs/
publ/d541.htm)
• Buffer Usability and Cyclicality in the Basel Framework (issued in October and available at
https://www.bis.org/bcbs/publ/d542.htm)
• Newsletter on Positive Cycle-Neutral Countercyclical Capital Buffer Rates (issued in October and
available at https://www.bis.org/publ/bcbs_nl30.htm)

The BCBS provides a forum for regular cooperation on banking supervisory matters. Its 45 members comprise central
banks and bank supervisors from 28 jurisdictions.

Supervision and Regulation

• Newsletter on Bank Exposures to Non-Bank Financial Intermediaries (issued in November and
available at https://www.bis.org/publ/bcbs_nl31.htm)
• Frequently Asked Questions on Climate-Related Financial Risks (issued in December and available at https://www.bis.org/bcbs/publ/d543.htm)
• Evaluation of the Impact and Efficacy of the Basel III Reforms (issued in December and available
at https://www.bis.org/bcbs/publ/d544.htm)
Examples of consultative BCBS documents issued in 2022 include
• Principles for the Effective Management and Supervision of Climate-Related Financial Risks
(issued in June and available at https://www.bis.org/bcbs/publ/d532.htm)
• High-Level Considerations on Proportionality (issued in July and available at https://www.bis.org/
bcbs/publ/d534.htm)
• Prudential Treatment of Cryptoasset Exposures (final consultation issued in December and available at https://www.bis.org/bcbs/publ/d545.htm)
A comprehensive list of BCBS publications is available at https://www.bis.org/bcbs/
publications.htm.
Committee on Payments and Market Infrastructures
In 2022, the Federal Reserve continued its active participation in the activities of the Committee
on Payment and Market Infrastructures (CPMI), a forum in which central banks promote the safety
and efficiency of payment, clearing and settlement activities, and related arrangements.
The CPMI continued to coordinate with the FSB to advance the G-20 priority to enhance global
cross-border payments. In particular, the CPMI published analytical papers, frameworks, and selfassessment tools for several building blocks as set out in the FSB roadmap.
In addition, in conducting its work on financial market infrastructure and market-related reforms,
the CPMI often coordinated with the International Organization of Securities Commissions
(IOSCO). Over the course of 2022, CPMI-IOSCO advanced work on financial resources for central
counterparty (CCP) recovery and resolution, practices for addressing non-default losses at CCPs,
margining practices, stablecoin arrangements, client clearing at central counterparties, and fast
payments. In addition, CPMI-IOSCO continued to monitor implementation of the Principles for
Financial Market Infrastructures, including expectations for cyber resilience.

109th Annual Report | 2022

Some examples of 2022 CPMI publications include
• Central Counterparty Financial Resources for Recovery and Resolution (published by CPMI-IOSCO
and the FSB in March and available at https://www.bis.org/publ/othp46.pdf)
• Improving Access to Payment Systems for Cross-Border Payments: Best Practices for SelfAssessments (published by CPMI in May and available at https://www.bis.org/cpmi/publ/
d202.pdf)
• Extending and Aligning Payment System Operating Hours for Cross-Border Payments (published by
CPMI in May and available at https://www.bis.org/cpmi/publ/d203.pdf)
• Interlinking Payment Systems and the Role of Application Programming Interfaces: A Framework
for Cross-Border Payments (published by CPMI in July and available at https://www.bis.org/
cpmi/publ/d205.pdf)
• Application of the Principles for Financial Market Infrastructures to Stablecoin Arrangements (published by CPMI-IOSCO in July and available at https://www.bis.org/cpmi/publ/d206.pdf)
• A Discussion Paper on Central Counterparty Practices to Address Non-Default Losses (published
by CPMI-IOSCO in August and available at https://www.bis.org/cpmi/publ/d208.pdf)
• Review of Margining Practices (published by CPMI-IOSCO and BCBS in September and available
at https://www.bis.org/bcbs/publ/d537.pdf)
• A Discussion Paper on Client Clearing: Access and Portability (published by CPMI-IOSCO in September and available at https://www.bis.org/cpmi/publ/d200.pdf)
• Implementation Monitoring of the PFMI: Level 3 Assessment on Financial Market Infrastructures’
Cyber Resilience (published by CPMI-IOSCO in November and available at https://www.bis.org/
cpmi/publ/d212.pdf)
A comprehensive list of CPMI publications is available at https://www.bis.org/cpmi_publs/.
International Association of Insurance Supervisors
The Federal Reserve continued its participation in 2022 in the development of international supervisory standards for the insurance industry. The Federal Reserve participates actively in standardsetting at the International Association of Insurance Supervisors (IAIS) in consultation and collaboration with state insurance regulators, the National Association of Insurance Commissioners, and
the Federal Insurance Office. The Federal Reserve’s participation focuses on those aspects most
relevant to financial stability and consolidated supervision.
In 2022, the IAIS made progress on several initiatives. The IAIS proposed criteria for assessing
whether the Aggregation Method provides comparable outcomes to the ICS. The IAIS also completed its review of the implementation of the Holistic Framework. This led to the IAIS recom-

Supervision and Regulation

mending to the FSB that it discontinue the designation of global systemically important insurers
while retaining the option to reinstate these designations if deemed necessary.
Examples of IAIS documents issued in 2022 include
• 2022–2023 Roadmap (issued in January and available at https://www.iaisweb.org/uploads/
2022/03/2022-2023-Roadmap.pdf)
• Public Consultation on Draft Criteria that Will Be Used to Assess Whether the Aggregation Method
Provides Comparable Outcomes to the Insurance Capital Standard (issued in June and available
at https://www.iaisweb.org/2022/06/public-consultation-on-draft-criteria-that-will-be-used-toassess-whether-the-aggregation-method-provides-comparable-outcomes-to-the-insurance-capitalstandard/)
• Register of Internationally Active Insurance Groups Based on Information Publicly Disclosed by
Groupwide Supervisors (issued in July and available at https://www.iaisweb.org/uploads/2022/
08/Register-of-Internationally-Active-Insurance-Groups-IAIGs.pdf)
• Issues Paper on Insurance Sector Operational Resilience, Draft for Public Consultation (issued in
October and available at https://www.iaisweb.org/uploads/2022/10/Issues-Paper-onInsurance-Sector-Operational-Resilience.pdf)
• Public Consultation on the Review of the Individual Insurer Monitoring (IIM) Assessment Methodology (issued in December and available at https://www.iaisweb.org/uploads/2022/12/
221209-Public-consultation-on-the-review-of-the-IIM-assessment-methodology.pdf)
• Global Insurance Market Report (GIMAR), December 2022 (available at https://www.iaisweb.org/
uploads/2022/12/GIMAR-2022.pdf)
• Application Paper on the Supervision of Climate-Related Risks in the Insurance Sector (issued in
May and available at https://www.iaisweb.org/uploads/2022/01/210525-Application-Paper-onthe-Supervision-of-Climate-related-Risks-in-the-Insurance-Sector.pdf)
A comprehensive list of IAIS publications is available at https://www.iaisweb.org/publications.

Shared National Credit Program
The Shared National Credit (SNC) program is an interagency review and assessment of risk in the
largest and most complex credits shared by multiple regulated financial institutions. The SNC program is governed by an interagency agreement among the Board, FDIC, and OCC. SNC reviews are
completed in the first and third quarters of the calendar year. Large agent banks receive two
reviews each year, while most other agent banks receive a single review each year.
More information on the 2021 Shared National Credit review is available at https://
www.federalreserve.gov/newsevents/pressreleases/bcreg20220214a.htm.

109th Annual Report | 2022

Bank Secrecy Act and Anti-Money-Laundering Compliance
The Federal Reserve is responsible for examining institutions for compliance with the Bank
Secrecy Act (BSA) and applicable anti-money-laundering (AML) laws and regulations and conducts
such examinations in accordance with the FFIEC’s Bank Secrecy Act/Anti-Money-Laundering Examination Manual.
The Federal Reserve is currently participating in an ongoing interagency effort to update this
manual. Many of the revisions are designed to emphasize and enhance the risk-focused approach
to BSA/AML supervision and to continue to provide transparency into the BSA/AML examination
process.
The Anti-Money-Laundering Act of 2020 (the Act) amended the Bank Secrecy Act, resulting in the
most significant revision of the United States’ framework for anti-money laundering and countering
the financing of terrorism (AML/CFT) since 2001. The purpose of the Act is to improve coordination and information sharing; modernize AML/CFT laws; encourage technological innovations and
the adoption of new technology; reinforce the risk-based approach to compliance; and establish
uniform beneficial ownership information reporting requirements with a secure, nonpublic database for beneficial ownership information. The Federal Reserve continues to work with the U.S.
Treasury, federal banking, and other agencies to implement the relevant sections of that Act.
The Federal Reserve also participates in the U.S. Treasury-led BSA Advisory Group, which includes
representatives of regulatory agencies, law enforcement, and the financial services industry.

International Coordination on Sanctions, Anti-Money-Laundering, and Counter-Terrorism
Financing
The Federal Reserve participated in a number of international coordination initiatives related to
sanctions, money laundering, and terrorism financing. The Federal Reserve continued to monitor
and share information with relevant groups regarding the changing sanctions landscape and, in
particular, the ongoing global sanctions resulting from Russia’s invasion of Ukraine.
Additionally, the Federal Reserve has a long-standing role in the U.S. delegation to the intergovernmental Financial Action Task Force and its working groups, contributing a banking supervisory perspective to the formulation of international standards. The Federal Reserve also continued to participate in the work of the FSB that resulted in the publication of the July 2022 FSB report15
exploring options regarding broader adoption of the Legal Entity Identifier in cross-border payments

See https://www.fsb.org/2022/07/options-to-improve-adoption-of-the-lei-in-particular-for-use-in-cross-border-payments/.

Supervision and Regulation

and the October 2022 publication of the G–20 Roadmap for Enhancing Cross-border Payments
Consolidated progress report for 2022.16
The Federal Reserve also continued to participate in committees and subcommittees through the
Bank for International Settlements. Specifically, the Federal Reserve actively participated in the
AML Experts Group under the BCBS that focuses on AML and CFT issues. In addition, the Federal
Reserve participated in meetings and roundtables during the year to discuss BSA/AML issues
with delegations from countries and regions, such as Mexico, Australia, Central America, Canada,
Africa, and the United Kingdom. These dialogues are designed to promote information sharing and
understanding of BSA/AML issues between U.S. and country-specific financial sectors.

Regulatory Reports
The Federal Reserve, along with the other member FFIEC agencies, requires banking organizations
to periodically submit reports that provide information about their financial condition and structure.

Federal Reserve Regulatory Reports
The Federal Reserve requires that U.S. holding companies periodically submit reports that provide
information about their financial condition and structure.17 This information is essential to formulating and conducting financial institution regulation and supervision. It is also used to respond to
information requests by Congress and the public about holding companies and their nonbank subsidiaries. Foreign banking organizations and other entities are also required to submit reports periodically to the Federal Reserve. For more information on the various reporting forms, see https://
www.federalreserve.gov/apps/reportforms/.
Effective during 2022, the following regulatory reporting forms had substantive revisions:
• Consolidated Financial Statements for Holding Companies (FR Y-9C)—The Board revised the
FR Y-9C to be consistent with changes to U.S. generally accepted accounting principles related
to last-of-layer hedging. The revisions, which were effective as of the September 30, 2022,
report date, are consistent with changes to the FFIEC Consolidated Reports of Condition and
Income (Call Reports) (FFIEC 031, 041, and 051).18 There were no changes to the FR Y-9LP,
FR Y-9SP, FR Y-9ES, or FR Y-9CS.
• Structure Reporting and Recordkeeping Requirements for Domestic and Foreign Banking
Organizations (FR Y-6, FR Y-7, FR Y-10, and FR Y-10E)—The Board revised the FR Y-6, FR Y-7,
16

See https://www.fsb.org/2022/10/g20-roadmap-for-enhancing-cross-border-payments-consolidated-progressreport-for-2022/.
Holding companies are defined as BHCs, intermediate holding companies (IHCs), SLHCs, and securities holding
companies.
85 Fed. Reg. 74,784 (November 23, 2020), https://www.federalregister.gov/documents/2020/11/23/2020-25743/
agency-information-collection-activities-submission-for-omb-review-comment-request and 87 Fed. Reg. 55,005 (September 8, 2022), https://www.federalregister.gov/documents/2022/09/08/2022-19324/agency-information-collectionactivities-announcement-of-board-approval-under-delegated-authority.

109th Annual Report | 2022

and FR Y-10 to reduce reporting burden, standardize how certain data are reported, and update
the terminology used in the reports. The most significant revisions included (1) adding
“Yes/No” checkboxes on the FR Y-6 to capture whether the firm had changes to any reportable
items from the prior year’s submission; (2) adding an automated tool that will allow for the reconciliation of a respondent’s organizational chart in a secure electronic system; (3) adding a
standardized template for reporting securities holders and insiders on the FR Y-6; and (4)
updating the definition of control in the glossary section of the FR Y-10. The revisions to the
definition of control are effective March 31, 2023. The new standard template for securities
holders and insiders on the FR Y-6 and for reporting the organizational chart and tiered structure information on the FR Y-6 and FR Y-7 will be effective December 31, 2024. All other revisions were effective December 31, 2022.19
• Capital Assessments and Stress Testing Information Collection Reports (FR Y-14)—The
Board revised the FR Y-14 to better identify risks not currently captured in the supervisory
stress test, facilitate data reconciliation, and mitigate ambiguity within the instructions. Additionally, revisions were made to clarify the instructions that were, in part, prompted by questions
received from reporting institutions. For the FR Y-14Q, certain revisions were effective for the
September 30, 2022, as-of date, while other revisions were effective for the June 30, 2023,
as-of date. For the FR Y-14M, the revisions were effective for the September 30, 2022, as-of
date, and for the FR Y-14A, the revisions were effective for the December 31, 2022, as-of
date.20
• Complex Institution Liquidity Monitoring Report (FR 2052a)—The FR 2052a was revised to
implement the net stable funding ratio rule and other enhancements in December 2021.21 The
changes were effective on May 1, 2022, for firms subject to Category I standards and on
October 1, 2022, for firms subject to Category II-IV standards. The revisions to the collection
were significant and marked a major advancement in the Board’s capability to monitor and
supervise the liquidity risk profiles of large firms.
• Transfer Agent Registration and Amendment Form and Transfer Agent Deregistration
(Form TA-1 and Form TA-W)—The Board implemented the new Form TA-W to simplify the process for respondents to deregister as transfer agents and obviate the need to use the SEC
deregistration form or submit a separate letter. Form TA-W became effective as of
December 23, 2022.22

87 Fed. Reg. 73,304 (November 29, 2022), https://www.federalregister.gov/documents/2022/11/29/2022-26035/
agency-information-collection-activities-announcement-of-board-approval-under-delegated-authority.
87 Fed. Reg. 52,560 (August 26, 2022), https://www.federalregister.gov/documents/2022/08/26/2022-18462/
change-in-bank-control-notices-acquisitions-of-shares-of-a-bank-or-bank-holding-company.
86 Fed. Reg. 68,254 (December 1, 2021), https://www.federalregister.gov/documents/2021/12/01/2021-26103/
agency-information-collection-activities-announcement-of-board-approval-under-delegated-authority.
87 Fed. Reg. 71,639 (November 23, 2022), https://www.federalregister.gov/documents/2022/11/23/2022-25493/
agency-information-collection-activities-announcement-of-board-approval-under-delegated-authority.

Supervision and Regulation

FFIEC Regulatory Reports
The Federal Reserve, along with the other FFIEC member agencies, requires financial institutions
to submit various uniform regulatory reports.23 This information is essential to formulating and
conducting supervision and regulation and for the ongoing assessment of the overall soundness
of the nation’s financial system. For more information on FFIEC reporting forms, see https://
www.ffiec.gov/ffiec_report_forms.htm.
During 2022, the FFIEC member agencies completed a statutorily mandated review of the FFIEC
Call Reports and revised other reports that improve the monitoring of certain hedging activity and
country exposures.
• Consolidated Reports of Condition and Income (FFIEC 031, 041, 051)—Every five years, section 604 of the Financial Services Regulatory Relief Act of 2006 requires the banking agencies
to conduct a review of the information and schedules that are required to be filed by an insured
depository institution in the Call Reports. Under the auspices of the FFIEC, the banking agencies completed the statutorily mandated review in 2022. The FFIEC Task Force on Reports
(TFOR) conducted surveys of Call Report data users, representing diverse groups within the
banking agencies, the CFPB, and state supervisory authorities. The data users identified the
purposes for which they use each reported data item, the extent of usage for each item, and
the frequency with which each item is needed. The TFOR evaluated the survey results and provided a report to the FFIEC principals in December 2022. Separately, the FFIEC member agencies revised the Call Reports24 to conform with the Accounting Standards Update 2022-01,
“Derivatives and Hedging (Topic 815): Fair Value Hedging—Portfolio Layer Method,”
(ASU 2022-0125), which was issued by Financial Accounting Standards Board in March 2022.
• Report of Assets and Liabilities of U.S. Branches and Agencies of Foreign Banks
(FFIEC 002)—The FFIEC member agencies revised the FFIEC 002 to be consistent with
changes made to the Call Reports for institutions that have adopted ASU 2022-01. These
changes were effective as of June 30, 2022.26
• Country Exposure Report (FFIEC 009) and Country Exposure Information Report
(FFIEC 009a)—The FFIEC member agencies revised the FFIEC 009 by clarifying that the redistribution of immediate-counterparty claims previously referred to as “Ultimate Risk Basis” should
be renamed as “Guarantor Basis.” As part of this revision, the agencies added two new columns to the newly renamed “Claims on a Guarantor Basis and Memorandum Items” section of
Schedule C to provide the agencies with a more complete view of the origin of collateral and its
23

The law establishing the FFIEC and defining its functions requires the FFIEC to develop uniform reporting systems for
federally supervised financial institutions. See 12 U.S.C. § 3305.
These revisions resulted from previously published accounting-related changes. See 87 Fed. Reg. 74,784
(November 23, 2020).
See Financial Accounting Standards Board ASU 2022-01, https://fasb.org/page/PageContent?pageId=/standards/
accounting-standards-updates-issued.html.
87 Fed. Reg. 74,784 (November 23, 2020).

109th Annual Report | 2022

Table 4.4. Training for supervision and regulation, 2022
Number of enrollments
Course sponsor or type

Federal Reserve personnel

Federal Reserve System
FFIEC
Rapid Response2
1

Instructional time
State and federal banking (approximate training days)1 Number of course offerings
agency personnel

263

232

160

14,327

1,544

Training days are approximate. System courses were calculated using five days as an average, with FFIEC courses calculated using four days
as an average.
Rapid Response is a virtual program created by the Federal Reserve System as a means of providing information on emerging topics to
Federal Reserve and state bank examiners.

value as a risk mitigant. Additionally, the agencies revised the FFIEC 009a to consolidate the
collection of more granular information for each foreign country where the exposure exceeds the
lesser of 0.75 percent of total assets or 15 percent of total capital (the previous Part B
threshold). The agencies also added six new columns to the FFIEC 009a to collect information
on immediate-counterparty claims. These revisions were effective as of the December 31,
2022, report date.27

Staff Development Programs
The Federal Reserve’s staff development program supports the ongoing development of nearly
4,000 professional supervisory staff, ensuring that they have the requisite skills necessary to
meet their evolving supervisory responsibilities. The Federal Reserve also provides course offerings to staff at state banking agencies. Training activities in 2022 are summarized in table 4.4.

Examiner Commissioning Program
An overview of the Federal Reserve System’s Examiner Commissioning Program for assistant
examiners is set forth in SR letter 17-6/CA letter 17-1, “Overview of the Federal Reserve’s Supervisory Education Programs.”28 Three examiner commissioning tracks are available: (1) community
banking organization, (2) consumer compliance, and (3) large financial institutions (LFI). On
average, individuals move through a combination of in-person training, self-paced learning, virtual
instruction, and on-the-job training over a period of about three to four years. Achievement is
measured by completing the required course content, demonstrating on-the-job knowledge, and
passing a professionally validated proficiency examination.
In 2022, 81 examiners passed the proficiency examination (37 in CBO, 14 in consumer compliance, and 30 in LFI). To ensure minimal disruption to assistant examiners, virtual delivery of con27

87 Fed. Reg. 49,647 (August 11, 2022), https://www.federalregister.gov/documents/2022/08/11/2022-17229/
proposed-agency-information-collection-activities-comment-request.
See https://www.federalreserve.gov/supervisionreg/srletters/sr1706.htm.

Supervision and Regulation

tent continued throughout 2022, with some in-person courses beginning again in the fourth
quarter of 2022.

Continuing Professional Development
The Federal Reserve provides supervisory staff (and, in many cases, state examiners through
existing partnerships with the Conference of State Banking Supervisors and FFIEC) with opportunities to maintain job knowledge after commissioning, learn about emerging concepts and practices,
and expand knowledge into highly specialized supervisory topics. A number of learning and communication solutions are developed or curated, including Rapid Response webinars, podcasts, selfguided learning plans on specialty topics, and other content produced for just-in-time communication to supervisory staff about emerging issues and regulatory policy.

Regulatory Developments
The Federal Reserve carries out its regulatory responsibilities by developing regulatory policy (rulemakings, supervision and regulation letters, policy statements, and guidance) and reviewing and
acting on a variety of applications filed by banking organizations.

Rulemakings and Guidance
The Federal Reserve issues new regulations or revises existing regulations in response to laws
enacted by Congress or because of evolving conditions in the financial marketplace. Over 2022,
the Federal Reserve, working with the other federal banking agencies, announced a variety of
policy actions to promote the safety and soundness, transparency, and efficiency of the financial
system. The Federal Reserve issued the following rules and statements in 2022 (see table 4.5).
Table 4.5. Federal Reserve or interagency rulemakings/statements/guidance
(proposed and final), 2022
Date issued

Rulemaking/statement/guidance

1/10/2022

Federal Reserve Board finalizes technical rule that will streamline reporting requirements for member banks related to
their subscriptions to Federal Reserve Bank capital stock.
Press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20220110a.htm

1/13/2022

SR-22-2, “Status of Covered Savings Associations and Holding Companies of Covered Savings Associations Under
Statutes and Regulations Administered by the Federal Reserve.”
Release: https://www.federalreserve.gov/supervisionreg/srletters/SR2202.htm

1/21/2022

SR-22-3/CA-22-1, “Federal Financial Institutions Examination Council Issues Statement of Principles on Examination
Information Requests.”
Release: https://www.federalreserve.gov/supervisionreg/srletters/SR2203.htm

1/28/2022

Federal Reserve Board invites public comment on proposed guidance to implement a framework for the supervision of
certain insurance organizations overseen by the Board.
Press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20220128a.htm

2/10/2022

Federal Reserve Board releases hypothetical scenarios for its 2022 bank stress tests.
Press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20220210a.htm

3/1/2022

Federal Reserve Board invites public comment on supplement to its May 2021 proposal.
Release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20220301a.htm
(continued)

109th Annual Report | 2022

Table 4.5—continued
Date issued

Rulemaking/statement/guidance

3/22/2022

Federal Reserve Board invites comment on interagency proposal to update policies and procedures governing
administrative proceedings for supervised financial institutions.
Joint press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20220322a.htm

3/25/2022

Federal Reserve Board announces it will extend comment period for proposal to implement a framework for the
supervision of certain insurance organizations overseen by the Board until May 5, 2022.
Press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20220325a.htm

3/29/2022

SR-22-4/CA-22-3, “Contact Information in Relation to Computer-Security Incident Notification Requirements.”
Release: https://www.federalreserve.gov/supervisionreg/srletters/SR2204.htm

5/5/2022

Agencies issue joint proposal to strengthen and modernize Community Reinvestment Act Regulations.
Joint press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20220505a.htm

5/11/2022

Agencies release revised questions and answers regarding flood insurance.
Joint press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20220511a.htm

6/6/2022

Federal Reserve Board announces that results from its annual bank stress tests will be released on Thursday, June 23, at
4:30 p.m. EDT.
Press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20220606a.htm

6/7/2022

Federal Reserve announces it will soon release second tool to help community financial institutions implement the
Current Expected Credit Losses (CECL) accounting standard.
Press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20220607a.htm

6/23/2022

Federal Reserve Board releases results of annual bank stress test, which show that banks continue to have strong capital
levels, allowing them to continue lending to households and businesses during a severe recession.
Press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20220623a.htm

6/28/2022

Agencies issue host state loan-to-deposit ratios.
Joint press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20220628a.htm

7/1/2022

Agencies release list of distressed or underserved nonmetropolitan middle-income geographies.
Joint press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20220701a.htm

7/1/2022

Federal Reserve and FDIC extend deadline for U.S. G-SIB resolution plan feedback.
Joint press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20220701b.htm

7/6/2022

SR-22-5, “Joint Statement on the Risk-Based Approach to Assessing Customer Relationships and Conducting Customer
Due Diligence.”
Release: https://www.federalreserve.gov/supervisionreg/srletters/SR2205.htm

7/19/2022

Federal Reserve Board invites comment on proposal that provides default rules for certain contracts that use the LIBOR
reference rate, which will be discontinued next year.
Press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20220719a.htm

8/4/2022

Federal Reserve Board announces the individual capital requirements for all large banks, effective on October 1.
Press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20220804a.htm

8/16/2022

Federal Reserve Board provides additional information for banking organizations engaging or seeking to engage in
crypto-asset-related activities.
Press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20220816a.htm
SR-22-6/CA-22-6, “Engagement in Crypto-Asset-Related Activities by Federal Reserve-Supervised Banking
Organizations.”
Release: https://www.federalreserve.gov/supervisionreg/srletters/SR2206.htm

9/8/2022

SR-22-7/CA-22-7, “Policy Statement on Whistleblower Claims.”
Release: https://www.federalreserve.gov/supervisionreg/srletters/SR2207.htm

9/9/2022

Agencies reaffirm commitment to Basel III standards.
Joint press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20220909a.htm

9/23/2022

Federal Reserve Board invites comment on updates to operational risk-management requirements for certain systemically
important financial market utilities (FMUs) supervised by the Board.
Press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20220923a.htm

9/27/2022

Federal Reserve Board invites comment on updates to its existing guidance on commercial real estate loan accommodations for borrowers.
Press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20220927a.htm

9/28/2022

Federal Reserve Board finalizes supervisory framework for insurance organizations that are overseen by the Board.
Press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20220928a.htm
SR-22-8, “Framework for the Supervision of Insurance Organizations.”
Release: https://www.federalreserve.gov/supervisionreg/srletters/SR2208.htm
(continued)

Supervision and Regulation

Table 4.5—continued
Date issued

Rulemaking/statement/guidance

9/29/2022

Federal Reserve Board announces that six of the nation’s largest banks will participate in a pilot climate scenario analysis
exercise designed to enhance the ability of supervisors and firms to measure and manage climate-related financial risks.
Press release: https://www.federalreserve.gov/newsevents/pressreleases/other20220929a.htm

9/29/2022

Federal and state financial regulatory agencies issue interagency statement on supervisory practices regarding financial
institutions affected by Hurricanes Fiona and Ian.
Joint press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20220929a.htm

9/30/2022

Agencies announce forthcoming resolution plan guidance for large banks and deliver feedback on resolution plan of Truist
Financial Corporation.
Joint press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20220930a.htm

10/3/2022

Federal Reserve Board finalizes updates to the Board’s rule concerning debit card transactions.
Press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20221003a.htm

10/6/2022

SR-22-9/CA-22-8, “FedEZFile™ and FedEZFile Fluent™ to be Released for Filing Applications with the Federal Reserve.”
Release: https://www.federalreserve.gov/supervisionreg/srletters/sr2209.htm

10/13/2022

Agencies announce dollar thresholds in Regulation Z and Regulation M for exempt consumer credit and lease
transactions.
Joint press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20221013b.htm

10/13/2022

Agencies announce threshold for smaller loan exemption from appraisal requirements for higher-priced mortgage loans.
Joint press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20221013a.htm

10/14/2022

Federal Reserve Board invites public comment on an advance notice of proposed rulemaking to enhance regulators’
ability to resolve large banks in an orderly way should they fail.
Press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20221014a.htm

11/23/2022

Agencies announce results of resolution plan review for largest and most complex domestic banks.
Joint press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20221123a.htm

12/2/2022

Federal Reserve Board invites public comment on proposed principles providing a high-level framework for the safe and
sound management of exposures to climate-related financial risks for large banking organizations.
Press release: https://www.federalreserve.gov/newsevents/pressreleases/other20221202b.htm

12/15/2022

Agencies extend comment period on advance notice of proposed rulemaking on large bank resolvability.
Joint press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20221215a.htm

12/16/2022

Federal Reserve Board adopts final rule that implements Adjustable Interest Rate (LIBOR) Act by identifying benchmark
rates based on SOFR (Secured Overnight Financing Rate) that will replace LIBOR in certain financial contracts after
June 30, 2023.
Press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20221216a.htm

12/16/2022

Agencies announce results of resolution plan review for certain domestic and foreign banks.
Joint press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20221216b.htm

12/19/2022

Agencies release annual asset-size thresholds under Community Reinvestment Act regulations.
Joint press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20221219a.htm

12/21/2022

Federal Reserve Board issues technical updates to its policy governing the provision of intraday credit in accounts at
Federal Reserve Banks.
Press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20221221a.htm

12/22/2022

SR-22-11, “Status of Certain Investment Funds and their Portfolio Investments for Purposes of Regulation O and Reporting
Requirements under Part 363 of FDIC Regulations.”
Release: https://www.federalreserve.gov/supervisionreg/srletters/sr2211.htm

Banking Applications
The Federal Reserve reviews applications submitted by BHCs, state member banks, SLHCs, foreign banking organizations, and other entities for approval to undertake various transactions and
to engage in new activities. In 2022, the Federal Reserve acted on 938 applications filed under
the six relevant statutes.
The Federal Reserve publishes the Semiannual Report on Banking Applications Activity, which provides aggregate information on proposals filed by banking organizations and reviewed by the Fed-

109th Annual Report | 2022

eral Reserve. The current report as well as historical reports are available at https://
www.federalreserve.gov/publications/semiannual-report-on-banking-applications-activity.htm.

Public Notice of Federal Reserve Decisions and Filings Received
The Board’s website provides information on orders and announcements (https://
www.federalreserve.gov/newsevents/pressreleases.htm) as well as a guide for U.S. and foreign
banking organizations that wish to submit applications (https://www.federalreserve.gov/
bankinforeg/afi/afi.htm).

Payment System and Reserve Bank
Oversight

The Federal Reserve performs key functions to maintain the integrity of the U.S. payment and
settlement system. These functions help keep cash, check, and electronic transactions moving
reliably through the U.S. economy on behalf of households and businesses and the U.S. Treasury.
This section discusses the key payment system and Reserve Bank oversight activities undertaken
by the Federal Reserve during 2022:
• providing payment services to depository and certain other institutions (see figure 5.1)
• distributing the nation’s currency and coin to depository institutions
• serving as fiscal agents and depositories for the U.S. government and other entities
• serving as a catalyst for payment system improvements
• conducting Reserve Bank oversight to ensure effective internal controls, operations, and
management

Figure 5.1. Average daily value of Federal Reserve payment services to depository and other institutions
Billions of dollars

The Federal Reserve provides “priced services” to depository and other institutions (see “Payments Services to Depository and Other Institutions”). These payment and related services are operated as separate business lines and costs
are tracked accordingly (see box 5.1).

4,241.0

35.8
Commercial checks
collected by the
Reserve Banks

Advancing
Fedwire research
funds
andtransfers
engagement

105.6
National Settlement
Service settlements

154.7

1,367.2

Commercial
ACH transfers

Fedwire Securities
transfers

109th Annual Report | 2022

Payment Services to Depository and Other Institutions
Reserve Banks provide a range of payment and related services to depository and certain other
institutions; these “priced services” include collecting checks, operating an automated clearinghouse (ACH) service, transferring funds and securities, and providing a multilateral settlement service (see box 5.1).1
The Reserve Banks operated payment services as separate business lines, led by a specific
Reserve Bank, and tracked cost recovery accordingly, until 2021. In response to the changing
financial services landscape and the planned launch of the FedNow® Service in July 2023, the
Reserve Banks commenced a restructuring of payment services under one enterprise in 2021, led
by a chief payments executive. Federal Reserve Financial Services is now an integrated organization within the Federal Reserve that is responsible for managing critical payment and securities
services that foster the accessibility, integrity, and efficiency of the U.S. economy. This new governance and operating model will continue to enhance the agility and resiliency of Reserve Bank payment services and provide streamlined support for depository institution customers across all
financial service offerings.

Commercial Check-Collection Service
The commercial check-collection service provides a suite of electronic and paper processing
options for forward and return collections.
In 2022, the Reserve Banks recovered 99.8 percent of the total costs of their commercial checkcollection service, including the related private-sector adjustment factor (PSAF). The Reserve
Banks’ operating expenses and imputed costs totaled $109.7 million. Revenue from operations
totaled $110.5 million, resulting in a net income of $0.8 million. Reserve Banks handled 3.4 billion checks in 2022, a decrease of 7.8 percent from 2021 (see table 5.1). The average daily value
of checks collected by the Reserve Banks in 2022 was approximately $35.8 billion, an increase of
2.2 percent from the previous year. The Reserve Banks expect volumes to continue to decline
because of substitution away from checks to other payment instruments although uncertainty
remains as to the rate of decline.

Depository institutions are defined as commercial banks, thrifts, and credit unions. Besides playing an important role in
the broader economy by providing transaction accounts, such as checking accounts, to consumers, households, and
businesses, these institutions play an important role in the Federal Reserve System’s payment and settlement system
function.

Payment System and Reserve Bank Oversight

Commercial Automated Clearinghouse Service
The commercial ACH service provides domestic and cross-border batched payment options for
same-day and next-day settlement, enabling depository institutions and their customers to process
large volumes of payments through electronic batch processes.
In 2022, the Reserve Banks recovered 101.7 percent of the total costs of their commercial ACH
services, including the related PSAF. The Reserve Banks’ operating expenses and imputed costs
totaled $169.5 million. Revenue from operations totaled $174.0 million, resulting in a net income
of $4.5 million. The Reserve Banks processed 18.5 billion commercial ACH transactions in 2022,
an increase of nearly 3.5 percent from 2021 (see table 5.1). The average daily value of FedACH
transfers in 2022 was approximately $154.7 billion, an increase of 4.6 percent from the previous year.

FedNow Service
The FedNow® Service, which will be available in July 2023, is a new service that will enable banks
across the United States to provide instant payments to their customers at any hour of the day,
every day of the year. The FedNow Service will provide a flexible infrastructure for banks and their
service providers to develop instant payments products for their customers. In 2022, the Reserve
Banks reached several significant milestones in collaboration with a diverse group of financial
institution partners. Progress included onboarding of pilot participants and initiation of testing processes; publication of amendments to Regulation J, along with FedNow Service Operating Circular
8, to provide a comprehensive rule framework for funds transfers over the service; and finalization
of 2023 pricing. These efforts are in support of the introduction of the FedNow Service to the
market, which represents a significant first step toward achieving nationwide access to instant
payments.

Fedwire Funds and National Settlement Services
In 2022, the Reserve Banks recovered 95.3 percent of their costs of the Fedwire Funds and
National Settlement Service, including the related PSAF. The Reserve Banks’ operating expenses
and imputed costs totaled $160.7 million in 2022. Revenue from operations totaled $157.2 million, resulting in a net loss of $3.5 million.

Fedwire Funds Service
The Fedwire Funds Service allows depository institutions and their customers to send or receive
domestic time-critical payments using their balances at Reserve Banks to transfer funds in
real time.

109th Annual Report | 2022

Box 5.1. Priced Services and Cost Recovery
The Federal Reserve must (under the Monetary Control Act of 1980) establish fees for “priced services” to recover, over the long run, all the direct and indirect costs associated with its payment and
settlement system service. Costs include those actually incurred as well as the imputed costs that
would have been incurred—including financing costs, taxes, and certain other expenses—and the
return on equity (profit) that would have been earned if a private business firm had provided the services.1 The imputed costs and imputed profit are collectively referred to as the private-sector adjustment factor (PSAF).
From 2013 through 2022, the Reserve Banks recovered 102.5 percent of the total priced services
costs, including the PSAF (see table A). In 2022, Reserve Banks recovered 99.3 percent of the total
priced services costs, including the PSAF (see table A). The Reserve Banks’ operating expenses and
imputed costs totaled $462.8 million. Revenue from operations totaled $466.7 million, resulting in a
net income from priced services of $7.2 million. The FedACH Service and the Fedwire® Securities Service achieved full cost recovery. The Fedwire Services and National Settlement Services did not achieve
full cost recovery because of ongoing technology investments and higher operating costs. The check
services did not achieve full cost recovery as volumes continue to decline.
Table A. Priced services cost recovery, 2013–22
Millions of dollars, except as noted

Year

Revenue from
services1

Operating
Targeted return
expenses and
on equity
2
imputed costs

Total costs

Cost recovery
(percent)3

2013

441.3

409.3

4.2

413.5

106.7

2014

433.1

418.7

5.5

424.1

102.1

2015

429.1

397.8

5.6

403.4

106.4

2016

434.1

410.5

4.1

414.7

104.7

2017

441.6

419.4

4.6

424.0

104.1

2018

442.5

428.1

5.2

433.3

102.1

2019

444.0

441.2

5.4

446.5

99.4

2020

446.9

434.0

5.9

439.9

101.6

2021

456.0

452.8

4.4

457.2

99.7

2022

466.7

462.8

7.2

470.0

99.3

4,435.7

4,274.6

52.1

4,326.7

102.5

2013–22

Note: Here and elsewhere in this section, components may not sum to totals or yield percentages shown because of rounding. Excludes
amounts related to development of the FedNow Service.
1
For the 10-year period, includes revenue from services of $4,434.1 million and other income and expense (net) of $1.6 million.
2
For the 10-year period, includes operating expenses of $4,176.9 million, imputed costs of $36.5 million, and imputed income taxes
of $61.2 million.
3
Revenue from services divided by total costs. For the 10-year period, cost recovery is 103.8 percent, including the effect of accumulated other comprehensive income (AOCI) reported by the priced services under ASC 715. For details on changes to the estimation
of priced services AOCI and their effect on the pro forma financial statements, refer to note 3 to the “Pro Forma Financial Statements
for Federal Reserve Priced Services” at the end of this section.

According to the Accounting Standards Codification (ASC) Topic 715 (ASC 715), Compensation-Retirement Benefits, the Reserve
Banks recognized a $590.0 million reduction in equity related to the priced services’ benefit plans through 2022. Including this
reduction in equity, which represents a decline in economic value, results in cost recovery of 103.8 percent for the 10-year period.
For details on how implementing ASC 715 affected the pro forma financial statements, refer to note 3 to the pro forma financial
statements at the end of this section.

Payment System and Reserve Bank Oversight

Table 5.1. Activity in Federal Reserve priced services, 2020–22
Thousands of items, except as noted

Service
Commercial check
Commercial ACH
Fedwire funds transfer
National settlement
Fedwire securities

Percent change

2022

2021

2020

3,373,580

3,657,312

3,766,523

18,517,858

17,895,155

16,548,795

196,052

204,491

184,010

−4

2021–22

2020–21

−8

−3

586

551

3,410

4,200

4,600

−19

−9

Note: Activity in commercial check is the total number of commercial checks collected, including processed and fine-sort items; in commercial
ACH, the total number of commercial items processed; in Fedwire funds transfer and securities transfer, the number of transactions originated
online and offline; and in national settlement, the number of settlement entries processed.

From 2021 to 2022, the number of Fedwire funds transfers originated by depository institutions
decreased 4.1 percent, to approximately 196 million (see table 5.1). The average daily value of
Fedwire funds transfers in 2022 was $4.2 trillion, an increase of 7.8 percent from the
previous year.

National Settlement Service
The National Settlement Service (NSS) is a multilateral settlement system that allows
participants in private-sector clearing arrangements to settle transactions using their balances at
Reserve Banks.
In 2022, the service processed settlement files for 12 local and national private-sector arrangements. The Reserve Banks processed 8,763 files that contained about 586,000 settlement
entries (see table 5.1). Settlement file activity in 2022 increased 1.0 percent from 2021, and
settlement entries did not change. The total value of settlement processed by NSS increased
5.5 percent, to $26.4 trillion.

Fedwire Securities Service
The Fedwire Securities Service is a central securities depository and real-time securities settlement system that allows its participants to transfer electronically to other service participants certain securities issued by the U.S. Department of the Treasury, federal government agencies,
government-sponsored enterprises, and certain international organizations.2 It also provides for
the issuance, safekeeping, and maintenance of those securities.

The expenses, revenues, volumes, and fees reported here are for priced-services for securities issued by federal government agencies, government-sponsored enterprises, and certain international organizations. Reserve Banks provide
Treasury securities services in their role as the Treasury’s fiscal agent. These services are not considered priced services. For details, see “Financing and Securities Services” later in this section.

109th Annual Report | 2022

In 2022, the Reserve Banks recovered 107.7 percent of the costs of their Fedwire Securities Service, including the related PSAF. The Reserve Banks’ operating expenses and imputed costs
totaled $22.9 million in 2022. Revenue from operations totaled $24.9 million, resulting in a net
income of $2.0 million. In 2022, the number of non-Treasury securities transfers processed via
the service decreased approximately 19.4 percent from 2021, to approximately 3.4 million (see
table 5.1). The average daily value of Fedwire Securities priced-service transfers in 2022 was
approximately $71.8 billion, a decrease of 0.8 percent from the previous year.3 The average daily
value of all Fedwire Securities transfers in 2022 was more than $1.37 trillion, an increase of
approximately 10.8 percent from the previous year.
The Reserve Banks, as fiscal agents for the U.S. Treasury, perform the transfer and settlement of
Treasury securities. In 2022, the number of all Treasury security transfers was approximately
19.6 million, an increase of 22.2 percent from 2021.
The Reserve Banks, as fiscal agents for Fedwire Securities issuers, facilitate the principal and
interest payments to the Fedwire Securities Service participants holding securities. In 2022, the
total cash value of principal and interest payments was $25.51 trillion (a decrease of 13.0 percent from 2021).
The Fedwire Securities Service is the central securities depository for securities issued over the
Fedwire Securities Service. At the end of 2022, there was approximately $106 trillion (par value)
of Fedwire securities held in securities accounts maintained by the Reserve Banks as part of the
service, a 3.6 percent increase from 2021. At the end of 2022, there were 1.45 million unique
securities outstanding on the service, an increase of 2.9 percent from 2021.

FedLine Solutions: Access to Reserve Bank Services
The Reserve Banks’ FedLine Solutions provide depository institutions with a variety of connections
for accessing the Reserve Banks’ payment and information services.
For priced services, the Reserve Banks charge fees for these connections and allocate the associated costs and revenue to the various services. There are currently six FedLine Solutions through
which customers can access the Reserve Banks’ priced services: FedMail, FedLine Exchange,
FedLine Web, FedLine Advantage, FedLine Command, and FedLine Direct. These FedLine Solutions
are designed to meet the individual connectivity, security, and contingency requirements of depository institution customers.
The Reserve Banks continue to focus on increased resiliency and availability of the FedLine Solutions, and to enhance the customer experience through access to value-added services not avail3

These values do not include reversals.

Payment System and Reserve Bank Oversight

able on legacy technology. In 2022, the Reserve Banks advanced the safety and security of
FedLine Solutions by making progress on key infrastructure upgrades and network modernization,
as well as through proactive monitoring of an evolving threat environment.

Federal Reserve Intraday Credit
The Federal Reserve Board governs the use of Federal Reserve Bank intraday credit, also known
as daylight overdrafts.4 A daylight overdraft occurs when an institution’s account activity creates a
negative balance in the institution’s Federal Reserve account at any time in the operating day. Daylight overdrafts enable an institution to send payments more freely throughout the day than if it
were limited strictly by its available intraday funds balance, increasing efficiency and reducing payment system risk.
Given the high level of overnight balances institutions hold at the Federal Reserve Banks, daylight
overdrafts have remained relatively low, as shown in figure 5.2.5

Figure 5.2. Aggregate daylight overdrafts 2007–22

200

Billions of dollars

150

100

Peak daylight overdrafts
Average daylight overdrafts

2007

2009

2011

2013

2015

2017

2019

2021

2022

Source: Payment Data Repository data, Federal Reserve quarterly payment system risk data.

Fees collected for daylight overdrafts are also at low levels. Fees as well as the use of intraday
credit are expected to remain relatively low given the high levels of overnight balances under the
ample reserves regime. Additionally, a 2011 policy revision that eliminated fees for collateralized
daylight overdrafts has further contributed to the decrease in fees.

See the Payment System Risk policy: https://www.federalreserve.gov/paymentsystems/psr_about.htm. The Payment
System Risk policy recognizes explicitly the role of the central bank in providing intraday balances and credit to healthy
institutions; under the policy, the Reserve Banks provide collateralized intraday credit at no cost.
Increases in the overnight balances institutions held at the Reserve Banks have decreased the demand for intraday
credit. Use of intraday credit is expected to remain low given the FOMC’s decision to continue to implement monetary
policy within a regime of ample reserves.

109th Annual Report | 2022

Box 5.2. U.S. Currency Program to Produce New Currency
Designs
As the issuing authority for Federal Reserve notes, the Federal Reserve Board works closely with the
Bureau of Engraving and Printing (BEP) to ensure that the production of U.S. currency remains secure
and that the notes produced are high quality and in a quantity sufficient to meet public demand, supporting the Board’s mission to provide a variety of safe and secure payment methods for the public.1
Currently, Federal Reserve notes are produced by the BEP in two locations, Washington, D.C., and Fort
Worth, Texas.
The current Washington, D.C., production facility was built in 1913 and needs to be replaced with a
modern facility that will allow the BEP to streamline production, keep building support costs low, and
meet physical security standards. The BEP initiated a project to build a new production facility in the
Washington, D.C., region to meet modern production requirements critical to the future of the U.S. Currency Program. A Department of Agriculture site in Beltsville, Maryland, was suitable, and a provision in
the 2018 Farm Bill transferred the land from the Department of Agriculture to the Department of the
Treasury.2
The Board’s role in the project is to ensure that the Board’s reimbursements are appropriately allocated
to build a facility capable of efficiently producing both current and future designs of secure U.S. currency. Board staff participate in multiple cross-agency governance bodies that oversee the project. Over
the past year, the Board and the BEP established governance procedures and developed a shared
vision for the management of this project.
The new facility will be equipped with modern equipment to produce the current designs of banknotes
and new types of equipment to add security features for the next family of banknotes. It is expected to
produce 3.5 billion notes per year under normal production conditions. The project is currently in the
design phase, and a final design is scheduled to be completed by the end of 2023, after which cost
estimates will be refined. The BEP expects to award the construction contract in 2024, start currency
production in 2027, and complete the project in 2031, when all production and support functions are
fully transitioned to the new facility.
1

Currency issuance is a mission essential function of the Board, and U.S. currency is the dominant reserve currency in the world. The
Federal Reserve Act requires the Board to reimburse the BEP for the expenses necessarily incurred by producing U.S. currency.
Agriculture Improvement Act of 2018, Pub. L. No. 115-334, 132 Stat. 4490 (2018).

Currency and Coin
The Federal Reserve Board issues the nation’s currency (in the form of Federal Reserve notes) to
28 Federal Reserve Bank offices. The Reserve Banks, in turn, distribute Federal Reserve notes to
depository institutions in response to public demand. Together, the Board and Reserve Banks work
to maintain the integrity of and confidence in Federal Reserve notes.
In 2022, Board staff continued to work with the Bureau of Engraving and Printing and the U.S.
Army Corps of Engineers to build a new currency production facility in the Washington, D.C., area.
The new production facility will replace the aging buildings in Washington and better position the
U.S. Currency Program to produce new currency designs that are more technically complex (see
box 5.2).

Payment System and Reserve Bank Oversight

The Reserve Banks distributed 31.2 billion Federal Reserve notes into circulation in 2022, a
4.8 percent decrease from 2021, and received 30.3 billion Federal Reserve notes from circulation, a 1.4 percent increase from 2021. The decrease in payments and increase in receipts
resulted in a net decrease in payments of 1.9 billion notes, or a 69.7 percent from 2021. This
decrease was primarily attributable to lower net payments of $20 and $100 notes and resulted in
the lowest level of net payments since 2009. The value of Federal Reserve notes issued and outstanding at year-end 2022 totaled $2,259.3 billion, a 3.3 percent increase from 2021. The yearover-year increase is primarily attributable to demand for $100 notes.
The Reserve Banks also distribute coin to depository institutions on behalf of the U.S. Mint.6 In
2022, Reserve Banks distributed 43.0 billion coins into circulation, a 7.0 percent decrease from
2021, and received 31.9 billion coins from circulation, a 5.1 percent decrease from 2021.

Banknote Development
During 2022, Federal Reserve Board staff continued to support efforts related to the development
of the next family of U.S. currency. For example, the Advanced Counterfeit Deterrence Steering
Committee, composed of the Treasury, the U.S. Secret Service, and Federal Reserve System staff,
provided advice on currency design changes to the Secretary of the Treasury, who has sole statutory authority to approve the final currency design.
Over the past year, Federal Reserve Board staff, alongside other U.S. Currency Program partners
(the Bureau of Engraving and Printing, Federal Reserve Financial Services, and the U.S. Secret Service), collaborated on banknote and technology development. Banknote development focuses on
meeting requirements based on user needs, security needs, and manufacturing capabilities. Technology development focuses on security features that can further bolster the counterfeit resistance of U.S. currency. To support these efforts, and like many other central banks, the Federal
Reserve Board led an adversarial analysis program to increase the counterfeit resilience of U.S.
currency and research counterfeit deterrence technologies. These activities work in concert to
meet the goal of developing the next family of banknotes with new, robust security features effectively integrated into the design, which is easy to authenticate and difficult for counterfeiters to
simulate.
In addition to participating on the Advanced Counterfeit Deterrence Steering Committee in 2022,
Federal Reserve Board staff continued to serve on the Central Bank Counterfeit Deterrence Group
and the Five Nations and chaired the United States Cash Machine Group. The Central Bank Counterfeit Deterrence Group is a group of central banks that collaborates to develop and deploy measures to combat digital counterfeiting. The Five Nations is a group of central banks, including the
6

The Federal Reserve Board is the issuing authority for Federal Reserve notes, while the U.S. Mint, a bureau of the U.S.
Treasury, is the issuing authority for coin.

109th Annual Report | 2022

Board, that works on common projects and uses experience in banknote development to discuss
issues related to security, functionality, and manufacturability of banknotes. The United States
Cash Machine Group works closely with manufacturers of cash authentication machines to ensure
that new and existing banknotes function in commerce. The Board collaborates with these
domestic and international partners to maintain worldwide confidence in U.S. currency.

Currency Education
The Federal Reserve Board’s U.S. Currency Education Program (CEP) is responsible for building
confidence in U.S. currency by providing education, training, and information about Federal
Reserve notes to the global public. The CEP works closely with the U.S. Secret Service, the U.S.
Department of State, and the U.S. Department of the Treasury’s Bureau of Engraving and Printing
to raise awareness about the designs and security features of Federal Reserve notes.
In 2022, the CEP launched the iOS version of Cash Assist, an app designed to support authentication training efforts for professional cash handlers across industries. The app uses the camera on
a user’s phone to identify a bill’s denomination and display the key security features found on
genuine Federal Reserve notes.
The CEP also hosted multiple virtual counterfeit trainings to instruct stakeholders on currency
authentication and counterfeit detection best practices. Domestically, the CEP hosted counterfeit
trainings for law enforcement officers, Federal Reserve Bank cash offices, and retail loss prevention personnel. Internationally, the CEP hosted trainings for cash operations staff and managers
from the central banks of Cambodia, El Salvador, Panama, and Jamaica.
The CEP regularly informed the public about U.S. currency through outreach on Facebook and
Twitter. In early 2022, the CEP launched a LinkedIn page to further its online visibility and introduce additional stakeholders to U.S. currency resources.

Fiscal Agency and Government Depository Services
The Federal Reserve Banks, upon the direction of the Secretary of the Treasury, act as fiscal
agents of the U.S. government.7 The Reserve Banks, in their role as fiscal agents, provide services such as payment services, debt financing and securities services, and financial accounting
and reporting services, as well as maintain the Treasury’s operating cash account.

In accordance with section 15 of the Federal Reserve Act. See https://www.federalreserve.gov/aboutthefed/
section15.htm.

Payment System and Reserve Bank Oversight

To support further the Treasury’s mission, the Reserve Banks develop, operate, and maintain a
number of automated systems and provide associated technology infrastructure services. The
Reserve Banks also provide certain fiscal agency and depository services to other entities.
Reserve Bank expenses for providing fiscal agency and depository services totaled $820.9 million, an increase of $52.4 million, or 6.8 percent (see table 5.2), which is primarily attributable to
increased demand from the Treasury. The Treasury and other entities reimburse the Reserve
Banks for the expense of providing fiscal agency and depository services. Costs for Treasuryrelated programs accounted for 98.0 percent of expenses, and costs for other entities accounted
for the remaining 2.0 percent.

Table 5.2. Expenses of the Federal Reserve Banks for fiscal agency and depository services, 2020–22
Thousands of dollars

Agency and service

2022

2021

2020

Payment services

375,606

353,030

293,994

Financing and Treasury securities services

207,805

184,535

179,314

Department of the Treasury

Financial accounting and reporting services

73,481

76,970

69,315

147,856

129,339

150,461

Total, Treasury

804,748

743,874

693,084

Other entities

16,130

24,595

39,321

820,878

768,469

732,406

Technology infrastructure services

Total reimbursable expenses

Note: Service costs include reimbursable pension costs, where applicable. Previous versions of the Annual Report provided a separate line
item for pension expenses.

Payment Services
The Reserve Banks support the Treasury’s payment services by developing, operating, and maintaining electronic systems that allow the public to receive payments from and authorize payments
to federal agencies, and allow the government to prevent and detect improper payments and collect past-due debts. The Reserve Banks also provide operational and customer support, agency
outreach efforts, and data analytics. The Reserve Banks process payments, such as federal payroll, Social Security benefits, and veterans’ benefits, from the Treasury’s account at the Federal
Reserve and process payments made to the Treasury’s account at the Federal Reserve, which
include collections such as fees owed to the federal government.
Reserve Bank expenses for providing Treasury payment services were $375.6 million in 2022, an
increase of $22.6 million, or 6.4 percent. This is primarily attributable to the Reserve Banks’ continued support for Treasury’s multiyear initiative to modernize the application that supports electronic tax collection although, in September 2022, Fiscal Service notified the Federal Reserve of

109th Annual Report | 2022

its decision to discontinue the electronic tax collection program. The other programs that contributed most to Reserve Bank expenses in 2022 were the Stored Value Card program, the Pay.gov
program, and the Do Not Pay program.
The Reserve Banks work with the Treasury to support the Stored Value Card program, which comprises three military cash-management services: EagleCash, EZpay, and Navy Cash. These programs provide electronic payment methods for goods and services on military bases and Navy
ships. Stored-value cards are in use on more than 90 military bases and installations in 20 countries (including the United States) and on board more than 135 ships.
The Reserve Banks also work with the Treasury to expand the use of electronic payment services
for payments made to the Treasury’s account at the Federal Reserve. The Reserve Banks operate
and maintain Pay.gov, an application that allows the public to use the internet to initiate and authorize payments to the federal government using a U.S.-held bank account (through ACH debit), a
credit or debit card, or a digital wallet through services such as PayPal or Amazon Pay. In 2022,
Pay.gov processed 93.7 million online payments valued at $228.5 billion. In addition, the Reserve
Banks operated applications that facilitated the movement of $32.2 billion in commercial deposits
to the Treasury’s account at the Federal Reserve. The Reserve Banks also processed and settled
144.6 million electronic payment transactions valued at $933.2 billion.
Additionally, the Reserve Banks work with the Treasury to develop, operate, and maintain Do Not
Pay, as well as provide agency outreach and data analytics services. Do Not Pay is designed to
protect the integrity of the federal government’s payment processes by assisting federal agencies
in preventing and detecting improper payments.8 In fiscal year 2022, Do Not Pay assisted more
than 20 agencies in identifying or stopping improper payments totaling more than $67.3 million.

Financing and Securities Services
The Reserve Banks work closely with the Treasury to support its ability to raise the financing
needed to operate the federal government, which includes functions such as cash forecasting, as
well as auctioning, issuing, settling, maintaining, and redeeming marketable Treasury securities
(bills, notes, and bonds). The Reserve Banks also support the Treasury by issuing, maintaining,
and redeeming U.S. savings bonds, as well as providing related operations and fulfillment services. The Reserve Banks provide customer service and operate the automated systems that support marketable Treasury securities and savings bonds.
In 2022, the Treasury, supported by the Reserve Banks, conducted 384 auctions that resulted in
the Treasury awarding $15.4 trillion in wholesale Treasury marketable securities to investors. The
8

Do Not Pay is authorized and governed by the Payment Integrity Information Act of 2019, Pub. L. 116-117, 134 Stat.
113 (2020).

Payment System and Reserve Bank Oversight

Reserve Banks also supported the issuance and servicing of $231.0 billion in savings bonds and
marketable securities to investors.9
Reserve Bank expenses for financing and securities services were $207.8 million in 2022, an
increase of $23.3 million, or 12.6 percent. This increase is primarily attributable to efforts to modernize the applications that facilitate the issuance, maintenance, and redemption of marketable Treasury securities and savings bonds.

Accounting and Reporting Services
The Reserve Banks support the Treasury’s accounting and reporting functions by forecasting,
monitoring, and managing the government’s overall cash requirements, cash flow, and governmentwide accounting services. The Reserve Banks also support the Treasury’s publication of the daily
and monthly Treasury statements; the Combined Statement of Receipts, Outlays, and Balances of
the United States Government; and the Financial Report of the United States Government.10
Reserve Bank expenses for financial accounting and reporting services were $73.5 million in
2022, a decrease of $3.5 million, or 4.5 percent, primarily attributable to a change in categorization of costs. The programs that contributed most to Reserve Bank expenses in 2022 were the
Cash Accounting Reporting System and G-Invoicing.
The Reserve Banks operate and maintain the Cash Accounting Reporting System, which handles
accounting and reporting for all federal agencies and is the electronic system of record for the government’s financial data. In addition, the Reserve Banks operate and maintain the G-Invoicing
application, which is the long-term solution for federal agencies to manage intragovernmental
financial transactions. In 2022, the Reserve Banks supported federal agencies to implement
G-Invoicing for new orders related to intragovernmental transactions, which became mandatory in
October 2022.

Infrastructure and Technology Services
The Reserve Banks design, build, and maintain the technology infrastructures and environments
that host the majority of applications that the Reserve Banks develop, operate, or maintain on
behalf of the Treasury.

Demand for Treasury products increased approximately 40 percent in 2022, primarily because of the higher interest rate
environment.
The Daily Treasury Statement summarizes the U.S. Treasury’s cash and debt operations for the federal government on a
modified cash basis and can be found at https://fiscal.treasury.gov/reports-statements/dts/. The Monthly Treasury
Statement summarizes the financial activities of the federal government and off-budget federal entities and can be
found at https://www.fiscal.treasury.gov/reports-statements/mts/. The Combined Statement of Receipts, Outlays, and
Balances of the United States Government is recognized as the official publication of the government’s receipts and outlays and can be found at https://fiscal.treasury.gov/reports-statements/combined-statement/. The Financial Report of
the United States Government provides the President, Congress, and the American people with a comprehensive view of
the federal government's finances and can be found at https://fiscal.treasury.gov/reports-statements/financial-report/.

109th Annual Report | 2022

In 2022, the Reserve Banks continued to build out and migrate applications to a cloud platform in
alignment with the Treasury’s cloud computing strategy.11 The Reserve Banks continued to effectively operate infrastructures, plan for end-of-life issues, increase automation, and strengthen their
systems against a host of new and evolving cybersecurity threats.
Reserve Bank expenses for infrastructure and technology services were $147.9 million in 2022,
an increase of $18.6 million, or 14.4 percent, primarily attributable to expanded efforts to migrate
applications to a cloud platform.

Services Provided to Other Entities
The Reserve Banks, when permitted by federal statute or when required by the Secretary of the
Treasury, also provide other domestic and international entities with U.S.-dollar-denominated
banking services, which include funds, securities, and gold safekeeping; securities clearing, settlement, and investment; and correspondent banking.
The Reserve Banks also issue and maintain, in electronic form, many federal agency, governmentsponsored enterprise, and certain international organizations securities. The majority of securities
services are performed for the Federal Home Loan Mortgage Association (Freddie Mac), the Federal National Mortgage Association (Fannie Mae), and the Government National Mortgage Association (Ginnie Mae).
Reserve Bank expenses for services provided to other entities were $16.1 million in 2022, a
decrease of $8.5 million, or 34.6 percent, which reflects the full-year effect of a cost
accounting change.

Evolutions and Improvements to the System
The Federal Reserve performs many functions in the payment system, including payment system
operator, supervisor and regulator of financial institutions and systemically important financial
market utilities, researcher, and catalyst for payment system improvements (see box 5.3 for more
information on Federal Reserve payment research).

Digital Innovations
The Federal Reserve views developments in financial technology through the lens of its longstanding public policy goals of safety and soundness of financial institutions, consumer protection, safety and efficiency of the payment system, and financial stability. Within that framework,

The Federal Cloud Computing Strategy—Cloud Smart—is a long-term, high-level strategy to drive Federal agency cloud
adoption. Additional information can be found at https://www.cio.gov/policies-and-priorities/cloud-smart/.

Payment System and Reserve Bank Oversight

Box 5.3. Payment System Research and Analysis
The Federal Reserve conducts research on a wide range of topics related to the design and activities of
payment, clearing, and settlement systems and financial market infrastructures, as well as the role of
these systems in the commercial activities of consumers, businesses, and governments.
In 2022, topics examined in Federal Reserve research included the following:
• measurement and analysis of short-run developments and long-run trends in the use of new and
established payment methods1
• drivers and potential effects of innovations in the payment system, particularly those related to new
and emerging technologies, such as instant payments and digital assets
• design, oversight, and regulation of financial market infrastructures
• developments related to payments fraud
In particular, see information about recent releases by the Federal Reserve Payments Study, available
at https://www.federalreserve.gov/paymentsystems/fr-payments-study.htm.
For more information, see the Board’s Payment Research website at https://www.federalreserve.gov/
paymentsystems/payres_about.htm; see also Federal Reserve Bank Payments Groups at https://
www.federalreserve.gov/paymentsystems/payres_fedgroups.htm.
1

In particular, see information about recent releases by the Federal Reserve Payments Study, available at https://
www.federalreserve.gov/paymentsystems/fr-payments-study.htm.

the Federal Reserve is actively engaged in supporting responsible innovation while ensuring associated risks are appropriately identified and managed.
The Federal Reserve is studying the implications of emerging financial technologies, including distributed ledger technologies and associated financial products such as cryptocurrencies and
stablecoins. These technologies have raised fundamental questions about appropriate legal and
regulatory safeguards. The Federal Reserve continues to monitor developments and works with
domestic and international counterparts to better understand and manage the implications of
these innovations (see box 5.4).

Payment System Regulation
Congress has assigned to the Board responsibility for implementing the Federal Reserve Act and
certain other laws pertaining to a wide range of banking and financial activities, including those
related to the payment and settlement system. The Board implements those laws in part through
its regulations (see the Board’s website at https://www.federalreserve.gov/supervisionreg/
reglisting.htm).
In October 2022, the Board finalized updates to Regulation II, the Board’s rule concerning debit
card transactions. Pursuant to the Durbin Amendment to the Dodd-Frank Act, the updates specify

109th Annual Report | 2022

Box 5.4. The Federal Reserve’s Research Work on Central Bank
Digital Currency
Like other central banks, the Federal Reserve is engaged in research into central bank digital currency
(CBDC). Its work does not indicate a decision to issue a CBDC; the research focuses on how a CBDC
could improve on an already safe, effective, dynamic, and efficient domestic payments system and recognizes that the implications must be thought through very carefully. The design of a CBDC would raise
important monetary policy, financial stability, consumer protection, cybersecurity, legal, and privacy considerations that require careful thought and analysis.
The Federal Reserve collaborates closely with international counterparts on issues related to digital
payments and CBDC. This includes engagement with multilateral institutions, such as the Bank for
International Settlements, G7, and Financial Stability Board, and bilateral engagements with other central banks. The Federal Reserve is part of a group of seven central banks and the Bank for International
Settlements that are working together to explore central bank digital currencies. Topics that this group
are investigating include system design, user needs, and financial stability implications.
The Federal Reserve is conducting independent research into the potential benefits, risks, and design
considerations of a potential CBDC, in addition to technical experimentation. For example, in 2022 the
Board’s Technology Lab examined CBDCs broadly, focusing on understanding different technologies and
design implications in addition to training technical staff on innovations in payment technologies. The
Federal Reserve Bank of Boston and MIT’s Digital Currency Initiative concluded exploratory research
known as Project Hamilton, a multiyear research project to explore the CBDC design space and gain a
hands-on understanding of a CBDC’s technical challenges and opportunities.1 The Federal Reserve
Bank of New York’s New York Innovation Center has been facilitating collaboration with the Bank for
International Settlements on financial innovation.2
The Federal Reserve is actively engaged with a wide variety of stakeholders, such as those from government, academia, and the private sector, to gather perspectives and expertise about considerations
such as potential CBDC uses and the range of design options. To help stimulate broad conversation,
the Federal Reserve Board issued a discussion paper in January 2022, titled Money and Payments: The
U.S. Dollar in the Age of Digital Transformation, outlining its current thinking on digital payments, with a
particular focus on the benefits and risks associated with a CBDC in the U.S. context.3 All comments
and a summary of responses can be found on the Board’s website.4
1

2
3

See the Federal Reserve Bank of Boston’s website for more information: https://www.bostonfed.org/news-and-events/news/2022/
12/project-hamilton-boston-fed-mit-complete-central-bank-digital-currency-cbdc-project.aspx.
See the Federal Reserve Bank of New York’s website for more information: https://www.newyorkfed.org/aboutthefed/nyic.
Board of Governors of the Federal Reserve System, Money and Payments: The U.S. Dollar in the Age of Digital Transformation
(Washington: Board of Governors, January 2022), https://www.federalreserve.gov/publications/files/money-and-payments20220120.pdf.
Federal Reserve Board—Public Comments, https://www.federalreserve.gov/cbdc-public-comments.htm.

that debit card issuers should enable at least two payment card networks to process all debit card
transactions, including “card-not-present” transactions, such as online payments. The revisions
address a disparity in the market between debit card networks’ enhanced ability to process cardnot-present transactions and some debit card issuers’ continued enablement of only one network
for merchants to choose between when routing such transaction.

Payment System and Reserve Bank Oversight

Other Improvements and Efforts
The Reserve Banks have been engaged in a number of multiyear technology initiatives that will
modernize their priced-services processing platforms. These investments are expected to enhance
efficiency, the overall quality of operations, and the Reserve Banks’ ability to offer additional services, consistent with the longstanding principles of fostering efficiency and safety, to depository
institutions. The Reserve Banks continued to enhance the resiliency and information security posture of the Wholesale Payment Systems through Reserve Bank-led cyber initiatives to respond to
environmental threats and cyberthreats. In 2022, the Reserve Banks advanced the safety and
security of FedLine Solutions by making progress on key infrastructure upgrades and network modernization, as well as through proactive monitoring of an evolving threat environment.
During 2021, the Federal Reserve continued work to replace the aging high-speed currencyprocessing equipment and sensors at the Reserve Banks for deployment through 2028. In 2021,
the Federal Reserve began the production development phase of the project to develop the highspeed currency-processing equipment for delivery beginning in 2025. In advance of the production
rollout, prototype and preliminary equipment will be installed and tested at pilot offices through
2024. A system integration effort was initiated to prepare currency sensors and develop software
for compatibility with the equipment.
The improvement of the efficiency, effectiveness, and security of information technology (IT) services and operations continued to be a central focus of the Reserve Banks. Under the leadership
of the Federal Reserve’s National IT organization and CIO, the System IT Strategic Plan was
refreshed in 2021 for 2021–23 to set priorities, align IT direction and resources, and ensure that
IT leaders and team members are working toward a common set of goals. The goals of the plan
are security, simplicity, and productivity, with priorities in ensuring a secure and reliable infrastructure, modernized application delivery, cloud and modern infrastructure, digital work and collaboration, data management and analytics, cybersecurity, and IT workforce skills. National IT continues
to guide the plan and track progress toward the goals. Additional efforts were initiated to
strengthen incident communication requirements across Reserve Bank payment systems and
operating units in response to a significant IT outage that affected the Federal Reserve’s payment
systems in February 2021.
With threat levels remaining elevated, the Reserve Banks remained vigilant with respect to cybersecurity posture, investing in risk-mitigation initiatives and programs and continuously monitoring
and assessing cybersecurity risks to operations and protecting systems and data. The Federal
Reserve System’s overall security posture continues to be strengthened through several highpriority information security initiatives such as application and endpoint multifactor authentication,
implementation of key ransomware protection and recovery technologies, and a focus on aligning
with the pillars of zero-trust architecture. Through these efforts, the Reserve Banks continue to

109th Annual Report | 2022

work together and with business partners to further enhance the state of information security
across the Federal Reserve System.
Several Reserve Banks took action in 2022 to maintain and renovate their facilities. Major multiyear facility programs at several Reserve Bank offices continued, focused on updating obsolescent
building systems to ensure infrastructure resiliency and continuity of operations. The Philadelphia
Reserve Bank continued construction activities for its multiyear program to replace its entire
mechanical and electrical infrastructure. The Miami Branch of the Federal Reserve Bank of Atlanta
is in the planning stages for an extensive vault addition and remodel. The Federal Reserve Bank of
New York is in the early phases of searching for property to build a new building to replace the
existing East Rutherford Operations Center. Other programs addressed the need to update office
and operations areas in support of efficiency and working environment.
For more information on the acquisition costs and net book value of the Reserve Banks and
Branches, see table G.13 in appendix G (“Statistical Tables”) of this annual report.

Oversight of Federal Reserve Banks
The combined financial statements of the Reserve Banks and the financial statements of each of
the 12 Reserve Banks are audited annually by an independent public accounting firm retained by
the Board of Governors.12 In addition, the Reserve Banks are subject to oversight by the Board of
Governors, which performs its own reviews.
The Reserve Banks use the 2013 framework established by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) to assess their internal controls over financial
reporting, including the safeguarding of assets. The management of each Reserve Bank annually
provides an assertion letter to its board of directors that confirms adherence to COSO standards.
The Federal Reserve Board engaged KPMG LLP (KPMG) to audit the 2022 combined and individual
financial statements of the Reserve Banks and the financial statements of the three limited
liability companies (LLCs) that are associated with the Board of Governors’ actions to address the
coronavirus pandemic, of which two LLCs are consolidated in the statements of the Federal
Reserve Bank of New York and one LLC is consolidated in the statements of the Federal Reserve
Bank of Boston.13

See “Federal Reserve Banks Combined Financial Statements” at https://www.federalreserve.gov/aboutthefed/auditedannual-financial-statements.htm.
In addition, KPMG audited the Office of Employee Benefits of the Federal Reserve System, the Retirement Plan for
Employees of the Federal Reserve System (System Plan), and the Thrift Plan for Employees of the Federal Reserve
System (Thrift Plan). The System Plan and the Thrift Plan provide retirement benefits to employees of the Board, the Federal Reserve Banks, the Office of Employee Benefits of the Federal Reserve System, and the Consumer Financial Protection Bureau.

Payment System and Reserve Bank Oversight

In 2022, KPMG also conducted audits of internal controls over financial reporting for each of the
Reserve Banks. Fees for KPMG services totaled $9.2 million, of which approximately $1.5 million
was for the audits of the LLCs.14 To ensure auditor independence, the Board of Governors requires
that KPMG be independent in all matters relating to the audits. Specifically, KPMG may not perform services for the Reserve Banks or affiliated entities that would place it in a position of
auditing its own work, making management decisions on behalf of the Reserve Banks, or in any
other way impairing its audit independence. In 2022, the Reserve Banks did not engage KPMG for
significant non-audit services.
The Board’s reviews of the Reserve Banks include a wide range of oversight activities, conducted
primarily by its Division of Reserve Bank Operations and Payment Systems. Division personnel
monitor, on an ongoing basis, the activities of each Reserve Bank, Federal Reserve Information
Technology, the System’s Office of the Chief Payments Executive, and the System’s Office of
Employee Benefits. The oversight program identifies the most strategically important Reserve
Bank current and emerging risks and defines specific approaches to achieve a comprehensive
evaluation of the Reserve Banks’ controls, operations, and management effectiveness.
The comprehensive reviews include an assessment of the internal audit function’s effectiveness
and its conformance to the Institute of Internal Auditors’ (IIA) International Standards for the Professional Practice of Internal Auditing, applicable policies and guidance, and the IIA’s code
of ethics.
The Board also reviews the System Open Market Account (SOMA) and foreign currency holdings
annually to
• determine whether the New York Reserve Bank, while conducting the related transactions and
associated controls, complies with the policies established by the Federal Open Market Committee (FOMC); and
• assess the SOMA-related IT project management and application development, vendor management, and system resiliency and contingency plans.
In addition, KPMG audits the year-end schedule of the SOMA participated asset and liability
accounts and the related schedule of participated income accounts. The FOMC is provided with
the external audit reports and a report on the Board review.

Each LLC will reimburse the Board of Governors for the fees related to the audit of its financial statements from the
entity’s available assets.

109th Annual Report | 2022

Income and Expenses
Annually, the Board releases the Combined Reserve Banks financial statements with financial
information as of December 31 and includes the accounts and results of operations of each of the
12 Reserve Banks.
In 2022, income was $170.7 billion, compared with $123.1 billion in 2021; expenses totaled
$111.9 billion, compared with $15.2 billion in 2021; and net income before remittances to the
Treasury totaled $58.8 billion, compared with $107.9 billion in 2021.
In accordance with the Federal Reserve Act, the Reserve Banks remit excess earnings to the
Treasury after providing for the cost of operations, payment of dividends, and reservation of an
amount necessary to a maintain aggregate surplus. During the first three quarters of 2022,
Reserve Banks transferred $76.0 billion from weekly earnings to the U.S. Treasury. In the fall of
2022, Reserve Bank earnings became negative due to the increase in interest expense on depository institution deposits and interest expense on securities sold under agreements to repurchase
and most Reserve Banks first suspended weekly remittances to the Treasury and started accumulating a deferred asset. A deferred asset represents the shortfall in earnings from the most recent
point that remittances were suspended and is the amount of net excess earnings Reserve Banks
will need to realize in the future before remittances to the Treasury resume.
Table 5.3 summarizes the income, expenses, and distributions of net earnings of the Reserve
Banks for 2022 and 2021. Appendix G of this report, “Statistical Tables,” provides more detailed
information on the Reserve Banks, including the consolidated LLCs.15 Additionally, appendix G
summarizes the Reserve Banks’ 2022 budget performance and 2023 budgets, budgeting processes, and trends in expenses and employment.

Table G.8A is a statement of condition for each Reserve Bank, table G.9 details the income and expenses of each
Reserve Bank for 2022, table G.10 shows a condensed statement for each Reserve Bank for the years 1914 through
2022, and table G.12 gives the number and annual salaries of officers and employees for each Reserve Bank.

Payment System and Reserve Bank Oversight

Table 5.3. Income, expenses, and distribution of net earnings of the Federal Reserve Banks,
2022 and 2021
Millions of dollars

Item
Current income
Loan interest income
SOMA interest income
Other current income1

2022

2021

170,684

123,059

154

229

169,979

122,326

551

504

107,850

11,008

Operating expenses

5,373

5,092

Reimbursements

−846

−787

Net expenses

System pension service cost

946

954

Interest paid on depository institutions deposits and others

60,405

5,333

Interest expense on securities sold under agreements to repurchase

41,967

414

Current net income

62,834

112,051

Net additions to (deductions from) current net income

−1,248

−1,538

Other expenses

Treasury securities gains, net
Federal agency and government-sponsored enterprise mortgage-backed securities (losses) gains, net
Foreign currency translation gains (losses), net
Other additions or deductions

−5

−234

−35

−1,762

−1,856

753

353

2,791

2,633

For Board expenditures

1,015

970

For currency costs

1,054

1,035

Assessments by the Board of Governors2

For Consumer Financial Protection Bureau costs3
Net income before providing for remittances to the Treasury
Consolidated variable interest entities: Income (loss), net

722

628

58,795

107,880

1,742

975

Consolidated variable interest entities: Non-controlling interest (income) loss, net

−1,701

−927

Reserve Bank and consolidated variable interest entities net income before providing for remittances to the Treasury

58,836

107,928

Earnings remittances to the Treasury

59,446

109,025

Net income after providing for remittances to the Treasury

−610

−1,097

Other comprehensive gain (loss)

1,819

−1,640

Comprehensive income

1,209

543

60,655

109,568

1,209

583

Total distribution of net income
Dividends on capital stock
Transfer from surplus and change in accumulated other comprehensive income
Remittances transferred to the Treasury4
Deferred asset increase
Earnings remittances to the Treasury, net
1
2

3
4

−40

76,031

109,025

−16,585

59,446

109,025

Includes income from priced services and securities lending fees.
A detailed account of the assessments and expenditures of the Board of Governors appears in the Board of Governors Financial Statements (see https://www.federalreserve.gov/aboutthefed/audited-annual-financial-statements.htm).
The Board of Governors assesses the Reserve Banks to fund the operations of the Consumer Financial Protection Bureau.
Represents cumulative excess earnings remitted to the Treasury during the period prior to entering a period of a shortfall of earnings and
suspending remittances.

109th Annual Report | 2022

SOMA Holdings
The FOMC has authorized and directed the Federal Reserve Bank of New York to execute open
market transactions to the extent necessary to carry out the domestic policy directive adopted by
the FOMC. The Federal Reserve Bank of New York, on behalf of the Reserve Banks, holds in the
SOMA the resulting securities, which include U.S. Treasuries, federal agency and governmentsponsored enterprise debt securities, federal agency and government-sponsored enterprise
mortgage-backed securities, investments denominated in foreign currencies, and commitments to
buy or sell related securities.16
Table 5.4 summarizes the average daily assets (liabilities), current income (expenses), and
average interest rate of the SOMA holdings for 2022 and 2021.

Lending
In 2022, the average daily balance and the average rate of interest earned for Reserve Bank
lending programs were as follows:
• Primary, secondary, and seasonal credit extended was $3,178 million and 2.75 percent.
• Paycheck Protection Program Liquidity Facility (PPPLF) was $19,215 million and 0.35 percent.
In addition, the Reserve Banks provided loans to special purpose vehicles (SPVs) that were established to administer liquidity programs created in response to the coronavirus pandemic. These
SPVs provided liquidity to market participants through the purchase of assets in accordance with
the terms of each liquidity program.

See table G.2 in appendix G for a list of Federal Reserve holdings of U.S. Treasuries and federal agency securities.

Payment System and Reserve Bank Oversight

Table 5.4. System Open Market Account holdings, 2022 and 2021
Millions of dollars, except as noted

Average daily assets (+)/liabilities (−)
Item
2022

2021

Year-overyear change

Average interest rate
(percent)

Current income (+)/expense (−)
2022

Year-overyear change

2021

2022

2021

System Open Market Account (SOMA) holdings
Securities purchased under
agreements to resell
U.S. Treasury securities, net

Federal agency and governmentsponsored enterprise (GSE)
mortgage-backed securities, net2
Government-sponsored enterprise
debt securities, net1
Foreign currency denominated
investments3
Central bank liquidity swaps

Other SOMA assets5
Total SOMA assets

162

−161

−1

2.25

0.35

5,937,386

5,456,776

480,610

115,872

92,610

23,261

1.95

1.70

2,760,954

2,417,179

343,775

53,959

29,619

24,340

1.95

1.23

2,597

2,622

−25

133

134

−1

5.11

18,504

21,294

−2,790

−3

−45

−0.01

−0.21

666

2,178

−1,512

2.68

0.33

−40

0.00

0.66

8,720,129

7,900,272

819,857

169,979

122,326

47,652

1.95

1.55

Securities sold under agreements to
repurchase: primary dealers and
expanded counterparties

−1,997,187

−717,540

−1,279,647

−36,655

−337

−36,318

1.84

0.05

Securities sold under agreements to
repurchase: foreign official and
international accounts

−290,553

−251,068

−39,485

−5,312

−77

−5,235

1.83

0.03

−2,287,740

−968,608

−1,319,132

−41,967

−414

−41,553

-834

−4,368

3,534

n/a

Total SOMA liabilities

−2,288,574

−972,976

−1,315,598

−41,967

−414

−41,553

1.83

0.04

Total SOMA holdings

6,431,555

6,927,296

−495,741

128,011

121,912

6,099

1.99

1.76

Total securities sold under
agreements to repurchase
Other SOMA liabilities6

1.83
n/a

0.04
n/a

Face value, net of unamortized premiums and discounts.
Face value, which is the remaining principal balance of the securities, net of unamortized premiums and discounts. Does not include
unsettled transactions.
3
Foreign currency denominated assets are revalued daily at market exchange rates.
4
Dollar value of foreign currency held under these agreements valued at the exchange rate to be used when the foreign currency is returned
to the foreign central bank. This exchange rate equals the market exchange rate used when the foreign currency was acquired from the foreign central bank.
5
Cash and short-term investments related to the federal agency and government-sponsored enterprise mortgage-backed securities (GSE
MBS) portfolio.
6
Represents the obligation to return cash margin posted by counterparties as collateral under commitments to purchase and sell federal
agency and GSE MBS, as well as obligations that arise from the failure of a seller to deliver securities on the settlement date.
n/a Not applicable.
* Less than $500,000.
2

109th Annual Report | 2022

Pro Forma Financial Statements for Federal Reserve
Priced Services
Table 5.5. Pro forma balance sheet for Federal Reserve priced services, December 31, 2022 and 2021
Millions of dollars

Item

2022

2021

Short-term assets (note 1)
Imputed investments

539.0

626.0

44.0

44.4

0.6

0.5

Prepaid expenses

44.8

25.2

Items in process of collection

72.3

76.4

Receivables
Inventory

Total short-term assets

700.8

772.5

Long-term assets (note 2)
Premises

103.2

93.2

Furniture and equipment

35.4

44.0

Leases, leasehold improvements, and long-term
prepayments

80.3

69.5

Deferred tax asset

149.5

Total long-term assets
Total assets

179.7
368.5

386.4

1,069.3

1,158.9

Short-term liabilities (note 3)
Deferred-availability items

611.3

659.4

Short-term debt

52.2

0.0

Short-term payables

37.3

Total short-term liabilities

37.8
700.8

697.2

Long-term liabilities (note 3)
Long-term debt
Accrued benefit costs
Total long-term liabilities
Total liabilities
Equity (including accumulated other comprehensive loss of
$590.0 million and $686.5 million at December 31,
2022 and 2021, respectively)
Total liabilities and equity (note 3)

98.5

0.0

215.4

403.7
314.0

403.7

1,014.8

1,101.0

54.5

57.9

1,069.3

1,158.9

Note: Components may not sum to totals because of rounding. The accompanying notes are an integral part of these pro forma priced
services financial statements.

Payment System and Reserve Bank Oversight

Table 5.6. Pro forma income statement for Federal Reserve priced services, 2022 and 2021
Millions of dollars

Item

2022

2021

Revenue from services provided to depository institutions (note 4)

466.7

456.0

Operating expenses (note 5)

461.4

448.3

5.3

7.7

Income from operations
Imputed costs (note 6)
Interest on debt

0.0

Interest on float

−3.5

Sales taxes

0.4
−0.1

3.9

0.4

Income from operations after imputed costs

3.4

3.7

4.9

4.0

Other income and expenses (note 7)
Investment income

0.1

0.0

Income before income taxes

5.0

4.0

Imputed income taxes (note 6)

1.0

0.8

Net income

4.0

3.2

Memo: Targeted return on equity (note 6)

7.2

4.4

Note: Components may not sum to totals because of rounding. The accompanying notes are an integral part of these pro forma priced
services financial statements.

Table 5.7. Pro forma income statement for Federal Reserve priced services, by service, 2022
Millions of dollars

Total

Commercial
check collection

Commercial
ACH

Fedwire
funds

Fedwire
securities

Revenue from services (note 4)

466.7

110.5

174.0

157.2

24.9

Operating expenses (note 5)1

461.4

107.7

171.1

160.3

22.2

Income from operations

5.3

2.8

−3.1

2.7

Imputed costs (note 6)

0.4

1.8

−2.8

1.3

0.2

Income from operations after imputed costs

4.9

1.0

5.6

−4.4

2.5

Other income and expenses, net (note 7)

0.1

0.0

Income before income taxes

5.0

1.0

5.7

−4.3

2.5

Imputed income taxes (note 6)

1.0

0.2

1.1

−0.9

0.5

Net income

4.0

0.8

4.5

−3.5

2.0

Memo: Targeted return on equity (note 6)

7.2

1.0

1.6

4.3

0.2

99.3

99.8

101.7

95.3

107.7

Item

Cost recovery (percent) (note 8)

Note: Components may not sum to totals because of rounding. Excludes amounts related to development of the FedNow Service. The accompanying notes are an integral part of these pro forma priced services financial statements.
1
Operating expenses include pension costs, Board expenses, and reimbursements for certain nonpriced services.

109th Annual Report | 2022

Notes to Pro Forma Financial Statements for Priced Services
(1) Short-Term Assets
Receivables are composed of fees due the Reserve Banks for providing priced services and the
share of suspense- and difference-account balances related to priced services.
Items in process of collection are gross Federal Reserve cash items in process of collection
(CIPC), stated on a basis comparable to that of a commercial bank. They reflect adjustments for
intra-Reserve Bank items that would otherwise be double-counted on the combined Federal
Reserve balance sheet and adjustments for items associated with nonpriced items (such as those
collected for government agencies). Among the costs to be recovered under the Monetary Control
Act is the cost of float, or net CIPC during the period (the difference between gross CIPC and
deferred-availability items, which is the portion of gross CIPC that involves a financing cost), valued
at the federal funds rate. Investments of excess financing derived from credit float are assumed to
be invested in federal funds.

(2) Long-Term Assets
Long-term assets consist of long-term assets used solely in priced services and the priced-service
portion of long-term assets shared with nonpriced services, including a deferred tax asset related
to the priced services pension and postretirement benefits obligation. The tax rate associated with
the deferred tax asset was 20.3 percent for 2022 and 20.8 percent for 2021.
Long-term assets also consist of an estimate of the assets of the Board of Governors used in the
development of priced services.

(3) Liabilities and Equity
Under the matched-book capital structure for assets, short-term assets are financed with shortterm payables and imputed short-term debt, if needed. Long-term assets are financed with longterm liabilities, imputed long-term debt, and imputed equity, if needed. To meet the Federal
Deposit Insurance Corporation (FDIC) requirements for a well-capitalized institution, in 2022 equity
is imputed at 5.1 percent of total assets and 10.0 percent of risk-weighted assets, and 2021
equity is imputed at 5.0 percent of total assets and 10.5 percent of risk-weighted assets.
The Board’s Payment System Risk policy reflects the international standards for financial market
infrastructures developed by the Committee on Payment and Settlement Systems and the Technical Committee of the International Organization of Securities Commissions in the Principles for
Financial Market Infrastructures. The policy outlines the expectation that the Fedwire Services will
meet or exceed the applicable risk-management standards. Although the Fedwire Funds Service
does not face the risk that a business shock would cause the service to wind down in a disorderly

Payment System and Reserve Bank Oversight

manner and disrupt the stability of the financial system, in order to foster competition with privatesector financial market infrastructures, the Reserve Banks’ priced services will hold six months of
the Fedwire Funds Service’s current operating expenses as liquid net financial assets and equity
on the pro forma balance sheet and, if necessary, impute additional assets and equity to meet the
requirement. The imputed assets held as liquid net financial assets are cash items in process of
collection, which are assumed to be invested in federal funds. In 2022, there were sufficient
assets and equity such that additional imputed balances were not required. In 2021, an additional
balance of $43 million was imputed to meet sufficient assets and equity requirements.
In accordance with ASC 715, Compensation–Retirement Benefits, the Reserve Banks record the
funded status of pension and other benefit plans on their balance sheets. To reflect the funded
status of their benefit plans, the Reserve Banks recognize the deferred items related to these
plans, which include prior service costs and actuarial gains or losses, on the balance sheet. This
results in an adjustment to the pension and other benefit plan liabilities related to priced services
and the recognition of an associated deferred tax asset with an offsetting adjustment, net of tax,
to accumulated other comprehensive income (AOCI), which is included in equity. The Reserve Bank
priced services recognized a pension asset, which is a component of accrued benefit costs, of
$68.2 million in 2022 and a pension liability of $27.3 million in 2021. The change in the funded
status of the pension and other benefit plans resulted in a corresponding increase in accumulated
other comprehensive loss of $96.5 million in 2021.

(4) Revenue
Revenue represents fees charged to depository institutions for priced services and is realized
from each institution through direct charges to an institution’s account.

(5) Operating Expenses
Operating expenses consist of the direct, indirect, and other general administrative expenses of
the Reserve Banks for priced services (that is, Check, ACH, FedWire Funds, and FedWire Securities) and the expenses of the Board related to the development of priced services. Board
expenses were $6.2 million in 2022 and $6.6 million in 2021. Operating expenses exclude
amounts related to the development of the FedNow Service.
In accordance with ASC 715, the Reserve Bank priced services recognized qualified pension-plan
service costs of $64.1 million in 2022 and $65.3 million in 2021. Operating expenses also
include the nonqualified service costs of $4.6 million in 2022 and $4.3 million in 2021. In 2019
Reserve Banks adopted an update to ASC 715 requiring disaggregation of other components of
net benefit expense from service costs. The adoption of ASC 715 does not change the systematic
approach required by generally accepted accounting principles to recognize the expenses associated with the Reserve Banks’ benefit plans in the income statement. As a result, these expenses

109th Annual Report | 2022

do not include amounts related to changes in the funded status of the Reserve Banks’ benefit
plans, which are reflected in AOCI.
The income statement by service reflects revenue, operating expenses, imputed costs, other
income and expenses, and cost recovery. The tax rate associated with imputed taxes was
20.3 percent for 2022 and 20.8 percent for 2021.

(6) Imputed Costs
Imputed costs consist of income taxes, return on equity, interest on debt, sales taxes, and interest
on float. Many imputed costs are derived from the PSAF model. The 2022 cost of short-term debt
imputed in the PSAF model is based on nonfinancial commercial paper rates; the cost of imputed
long-term debt is based on Merrill Lynch Corporate and High Yield Index returns; and the effective
tax rate is derived from U.S. publicly traded firm data, which serve as the proxy for the financial
data of a representative private-sector firm. The after-tax rate of return on equity is based on the
returns of the equity market as a whole.17
Interest is imputed on the debt assumed necessary to finance priced-service assets. These
imputed costs are allocated among priced services according to the ratio of operating expenses
for each service to the total expenses for all services.
Interest on float is derived from the value of float to be recovered for the check and ACH services,
Fedwire Funds Service, and Fedwire Securities Services through per-item fees during the period.
Float income or cost is based on the actual float incurred for each priced service.
The following shows the daily average recovery of actual credit float by the Reserve Banks for
2022 and 2021, in millions of dollars:18
Daily average recovery of actual float
Total float
Float not related to priced services1
Float subject to recovery through per-item fees
1

2022

2021

−219.4

−185.2

−15.4

−31.9

−204.0

−153.3

Float not related to priced services includes float generated by services to government agencies and by other central bank services.

Float that is created by account adjustments due to transaction errors and the observance of nonstandard holidays by some depository institutions was recovered from the depository institutions
through charging institutions directly. Float subject to recovery is valued at the federal funds rate.
17

See Federal Reserve Bank Services Private-Sector Adjustment Factor, 77 Fed. Reg. 67,007 (November 8, 2012),
https://www.gpo.gov/fdsys/pkg/FR-2012-11-08/pdf/2012-26918.pdf, for details regarding the PSAF methodology change.
Credit float occurs when the Reserve Banks debit the paying bank for checks and other items before providing credit to
the depositing bank.

Payment System and Reserve Bank Oversight

Certain ACH funding requirements and check products generate credit float; this float has been
subtracted from the cost base subject to recovery in 2022 and 2021.

(7) Other Income and Expenses
Other income consists of income on imputed investments. Excess financing resulting from additional equity imputed to meet the FDIC well-capitalized requirements is assumed to be invested
and earning interest at the 3-month Treasury bill rate.

(8) Cost Recovery
Annual cost recovery is the ratio of revenue, including other income, to the sum of operating
expenses, imputed costs, imputed income taxes, and after-tax targeted return on equity.

Consumer and Community Affairs

The Federal Reserve is committed to promoting fair and transparent financial service markets, protecting consumers’ rights, and ensuring that its policies and research include consumer and community perspectives. The Board promotes consumer protection, financial inclusion, and community
development through targeted work in supervision, regulatory policy, and research and analysis
(see figure 6.1). This section discusses the Federal Reserve’s key consumer and community
affairs activities during 2022:
• formulating and carrying out supervision and examination policy in collaboration with the Federal
Reserve System to ensure financial institutions comply with consumer protection laws and
regulations
• writing and reviewing regulations that implement consumer protection and community reinvestment laws
• conducting research, analysis, and data collection to identify and assess emerging consumer
and community development issues and risks to inform policy decisions

Figure 6.1. The Federal Reserve supports consumer and community mandates through a broad range of
activities
Through publications, events, and outreach, the Federal Reserve kept pace with rapid changes in the financial industry
and their effects on consumers and communities. See box 6.1 for information on how Federal Reserve initiatives
informed responsive guidance, research, and engagement.

Updating laws and policies

The Board, the Federal Deposit Insurance
Corporation, and the Office of the Comptroller
of the Currency issued a notice of proposed
rulemaking to modernize CRA regulations
and collected public comments.

Advancing research and engagement

The SHED report and Community Development
Research Seminar Series considered topics
including emerging financial products and
workforce development.
Publications on small business lending and
Community Advisory Council outreach offered
insight into the progress of the economic recovery.

Note: CRA refers to the Community Reinvestment Act. SHED refers to the Board’s annual Survey of Household Economics and Decisionmaking.

109th Annual Report | 2022

• identifying issues and advancing effective community development by engaging, convening, and
informing key stakeholders
To better understand consumer financial circumstances, the Federal Reserve conducted the yearly
Survey on Household Economics and Decisionmaking (SHED) in October 2022. For more information on our consumer and community research, see “Consumer Research and Analysis of
Emerging Issues and Policy” later in this section.

Consumer Compliance Supervision
The Federal Reserve’s consumer protection supervision program assesses compliance by state
member banks with a wide range of consumer protection laws and regulations including, but not
limited to, the Truth in Lending Act (TILA), the Electronic Fund Transfer Act, the Equal Credit Opportunity Act (ECOA), the Fair Housing Act (FHA), and the prohibition on unfair or deceptive acts or
practices (UDAP) in the Federal Trade Commission Act (FTC Act). The program also enforces these
laws and regulations and reviews state member banks’ performance under the Community Reinvestment Act (CRA).
The Board’s Division of Consumer and Community Affairs develops policies that govern and establish requirements for oversight of the Reserve Banks’ programs for consumer compliance supervision and examination of state member banks and bank holding companies (BHCs), as well as participating in some Large Institution Supervision Coordinating Committee initiatives.
In addition, the Board coordinates with the prudential regulators and the Consumer Financial Protection Bureau (CFPB) as part of the supervisory coordination requirements under the Dodd-Frank
Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) and ensures that consumer
compliance risk is appropriately incorporated into financial institutions’ consolidated riskmanagement programs.
The Board also oversees the development and delivery of examiner training and supervisionrelated budget and technology efforts; analyzes bank and BHC applications related to consumer
protection, convenience and needs, and the CRA; and oversees the handling of certain types of
consumer complaints by the Reserve Banks and directly processes certain consumer complaints
such as congressional complaints and appeals.

Consumer Compliance Examinations
Examinations are the Federal Reserve’s primary method of ensuring compliance with consumer
protection laws and assessing the adequacy of consumer compliance risk-management systems

Consumer and Community Affairs

within regulated entities.1 During 2022, the Federal Reserve, in conjunction with the federal and
state financial institution regulatory agencies, updated regulations to encourage transparency.
The Board’s regulatory efforts supported financial institutions by clarifying examination guidelines
and procedures. In January 2022, the Board joined the other Federal Financial Institutions Examination Council (FFIEC) agencies in outlining principles for examination information requests, which
FFIEC members developed as part of the final phase of the Examination Modernization Project.2
The Federal Reserve and its FFIEC partners also revised the guide to Home Mortgage Disclosure
Act (HMDA) reporting.3 Issued in May, the updated guide summarizes key requirements to assist
financial institutions complying with HMDA as implemented by the CFPB’s Regulation C.
The Federal Reserve continued to monitor financial institutions for regulatory compliance during
the year. The Reserve Banks completed 370 examinations in 2022. The breakdown of consumer
compliance examinations completed by Reserve Banks in 2022 included 183 consumer compliance examinations of state member banks, 172 CRA examinations of state member banks,
13 examinations of foreign banking organizations, and 2 examinations of Edge Act corporations or
agreement corporations.4

Community Reinvestment Act
The CRA requires that the Federal Reserve and other federal banking regulatory agencies
encourage financial institutions to help meet the credit needs of the local communities where they
do business, consistent with safe-and-sound operations. To carry out this mandate, the Federal Reserve
• examines state member banks to assess their performance under the CRA,
• considers banks’ CRA performance in context with other supervisory information when analyzing
applications for mergers and acquisitions, and
1

The Federal Reserve has examination and enforcement authority for federal consumer financial laws and regulations for
insured depository institutions with assets of $10 billion or less that are state member banks and not affiliates of covered institutions, as well as for conducting CRA examinations for all state member banks regardless of size. The Federal
Reserve also has examination and enforcement authority for certain federal consumer financial laws and regulations for
insured depository institutions that are state member banks regardless of asset size, while the CFPB has examination
and enforcement authority for many federal consumer financial laws and regulations for insured depository institutions
with over $10 billion in assets and their affiliates (covered institutions), as mandated by the Dodd-Frank Act. For data on
state member banks and other institutions supervised by the Federal Reserve (including number and assets of), see
section 4, “Supervision and Regulation.”
See supervision and regulation (SR)/community affairs (CA) letter SR 22-3/CA 22-1, “Federal Financial Institutions
Examination Council Issues Statement of Principles on Examination Information Requests,” https://
www.federalreserve.gov/supervisionreg/srletters/SR2203.htm.
See CA letter 22-4, “Revised ‘A Guide to HMDA Reporting: Getting It Right!,’” https://www.federalreserve.gov/
supervisionreg/caletters/caltr2204.htm.
Agency and branch offices of foreign banking organizations, Edge Act corporations, and agreement corporations fall
under the Federal Reserve’s purview for consumer compliance activities. An agreement corporation is a type of bank
chartered by a state to engage in international banking. The bank agrees with the Federal Reserve Board to limit its
activities to those allowed by an Edge Act corporation. An Edge Act corporation is a banking institution with a special
charter from the Federal Reserve to conduct international banking operations and certain other forms of business
without complying with state-by-state banking laws. By setting up or investing in Edge Act corporations, U.S. banks can
gain portfolio exposure to financial investing operations not available under standard banking laws.

109th Annual Report | 2022

• disseminates information about community development practices to bankers and the public
through community development offices at the Reserve Banks.5
The Federal Reserve assesses and rates the CRA performance of state member banks during
examinations conducted by staff at the 12 Reserve Banks. During the 2022 reporting period, the
Reserve Banks completed 172 CRA examinations of state member banks. Of those banks examined, 21 were rated “Outstanding,” 149 were rated “Satisfactory,” 2 were rated “Needs to
Improve,” and none were rated “Substantial Non-Compliance.”
In addition to annual evaluations, the Board continued to work to reform CRA regulations, analyzing public comments on the interagency notice of proposed rulemaking (NPR) and collaborating
with the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) on preparation of a final rule.6

Consumer Compliance Enforcement Activities
Fair Lending and UDAP Enforcement
The Federal Reserve is committed to ensuring that institutions it supervises comply fully with the
federal fair lending and consumer protection laws, including the ECOA, the FHA, and the FTC Act,
which prohibits unfair or deceptive acts or practices. The ECOA prohibits creditors from discriminating against any applicant, in any aspect of a credit transaction, on the basis of race, color, religion, national origin, sex, marital status, or age. In addition, creditors may not discriminate against
an applicant because the applicant receives income from a public assistance program or has exercised, in good faith, any right under the Consumer Credit Protection Act. The FHA prohibits discrimination in residential real estate–related transactions, including the making and purchasing of
mortgage loans, on the basis of race, color, religion, sex, handicap, familial status, or
national origin.
The Federal Reserve supervises all state member banks for compliance with the FHA. The Federal
Reserve and the CFPB have supervisory authority for compliance with the ECOA. For state member
banks with assets of $10 billion or less, the Board has the authority to enforce the ECOA. For
state member banks with assets over $10 billion, the CFPB has this authority.
With respect to the FTC Act, the Federal Reserve has supervisory and enforcement authority over
all state member banks, regardless of asset size and consults with the CFPB with regard to state
member banks over $10 billion in assets. An act or practice may be found to be unfair if it causes
5

For more information on various community development activities of the Federal Reserve System, see https://
www.fedcommunities.org/.
See Community Reinvestment Act, 87 Fed. Reg. 33,884 (proposed June 3, 2022), https://www.govinfo.gov/content/
pkg/FR-2022-06-03/pdf/2022-10111.pdf.

Consumer and Community Affairs

or is likely to cause substantial injury to consumers that is not reasonably avoidable by consumers
and not outweighed by countervailing benefits to consumers or to competition. A representation,
omission, or practice is deceptive if it is likely to mislead a consumer acting reasonably under the
circumstances and is material, and thus likely to affect a consumer’s conduct or decision
regarding a product or service.
When examiners find evidence of potential discrimination or potential UDAP violations, they work
closely with the Board’s Fair Lending or UDAP Enforcement staff, who provide additional legal and
statistical expertise and ensure that fair lending and UDAP laws are enforced consistently and rigorously throughout the Federal Reserve System.
With respect to fair lending, pursuant to the ECOA, if the Board has reason to believe that a
creditor has engaged in a pattern or practice of discrimination in violation of the ECOA, the matter
must be referred to the Department of Justice (DOJ). The DOJ reviews the referral and determines
whether further investigation is warranted. A DOJ investigation may result in a public civil enforcement action. Alternatively, the DOJ may decide to return the matter to the Board for administrative
action. If a matter is returned to the Board, staff ensure that the institution takes all appropriate
corrective action.
In 2022, the Board referred one fair lending matter to DOJ. The matter involved a pattern or practice of discrimination on the basis of familial status and through discouragement on the basis of
marital status in violation of ECOA and Regulation B.
If there is a fair lending violation that does not constitute a pattern or practice of discrimination
under the ECOA or if there is a UDAP violation, the Federal Reserve takes action to ensure that the
violation is remedied by the bank. The Federal Reserve uses a range of supervisory and enforcement tools, including nonpublic and public enforcement actions, to resolve any ECOA, FHA, or
UDAP violations and ensure that the institution takes appropriate corrective action. For example,
the Federal Reserve often uses informal supervisory tools such as memoranda of understanding
between banks’ boards of directors and the Reserve Banks, or board resolutions to ensure that
violations are corrected. When necessary, the Board can bring public enforcement actions.
Given the complexity of this supervision area, the Federal Reserve seeks to provide transparency
on its perspectives and processes to the industry and the public. Fair Lending and UDAP Enforcement staff meet with supervised institutions, consumer advocates, and industry representatives to
discuss fair lending and UDAP issues and receive feedback. Through this outreach, the Board can
address emerging fair lending and UDAP issues and promote sound fair lending and UDAP compliance. This includes staff participation in numerous meetings, conferences, and training events.

109th Annual Report | 2022

The Federal Reserve’s outreach included the annual Board-sponsored Interagency Fair Lending
Webinar, which attracted more than 6,393 registrants in 2022 and covered a variety of fair lending
topics such as redlining, appraisal bias, special purpose credit programs, and other supervision
and enforcement-related updates from participating agencies.7

Flood Insurance Enforcement
The National Flood Insurance Act imposes certain requirements on loans secured by buildings or
mobile homes located in, or to be located in, areas determined to have special flood hazards.
Under the Federal Reserve’s Regulation H, which implements the act, state member banks are
generally prohibited from making, extending, increasing, or renewing any such loan unless the
building or mobile home, as well as any personal property securing the loan, are covered by flood
insurance for the term of the loan. The law requires the Board and other federal financial institution regulatory agencies to impose civil money penalties when they find a pattern or practice of violations of the regulation.
In 2022, the Federal Reserve issued six formal consent orders and assessed approximately
$436,400 in civil money penalties against state member banks to address violations of the flood
regulation.8 These statutorily mandated penalties were forwarded to the National Flood Mitigation
Fund held by the Treasury for the benefit of the Federal Emergency Management Agency.

Mergers and Acquisitions
The Board is required by law to consider specific factors when evaluating proposed mergers and
acquisitions, including competitive considerations, financial condition, managerial resources
(including compliance with laws and regulations), convenience and needs of the community to be
served (including the record of performance under the CRA), and financial stability.
In evaluating bank applications, the Federal Reserve relies on the banks’ overall compliance
record, including recent fair lending examinations. In addition, the Federal Reserve considers the
CRA records of the relevant depository institutions, assessments of other relevant supervisors,
the supervisory views of examiners, and information provided by the applicant and public commenters. If warranted, the Federal Reserve will also conduct pre-membership exams for a transaction in which an insured depository institution will become a state member bank or in which the
surviving entity of a merger would be a state member bank.9

8
9

To view the webinar and the census reports by metropolitan statistical area (MSA), see “Consumer Compliance Outlook
Live” at https://consumercomplianceoutlook.org/outlook-live/archives/.
To view press releases for enforcement actions, see https://www.federalreserve.gov/newsevents/pressreleases.htm.
In October 2015, the Federal Reserve issued guidance providing further explanation on its criteria for waiving or conducting such pre-merger or pre-membership examinations. For more information, see https://www.federalreserve.gov/
supervisionreg/srletters/SR1511.htm.

Consumer and Community Affairs

The Board provides information on its actions associated with these merger and acquisition transactions, issuing press releases and Board Orders for each.10 The Federal Reserve also publishes
semiannual reports that provide pertinent information on applications and notices filed with the
Federal Reserve.11 The reports include statistics on the number of proposals that were approved,
denied, and withdrawn as well as general information about the length of time taken to process
proposals. Additionally, the reports discuss common reasons that proposals have been withdrawn
from consideration. Furthermore, the reports compare processing times for merger and acquisition
proposals that received adverse public comments and those that did not. See box 6.1 for information on some of the Board’s 2022 initiatives related to banking mergers and acquisitions.

Coordination with Other Agencies
Coordination with the Consumer Financial Protection Bureau
During 2022, staff continued to coordinate on supervisory matters with the CFPB in accordance
with the Interagency Memorandum of Understanding on Supervision Coordination. The agreement
is intended to establish arrangements for coordination and cooperation among the CFPB and the
Board of Governors, the OCC, the FDIC, and the National Credit Union Association (NCUA). The
agreement strives to minimize unnecessary regulatory burden and to avoid unnecessary duplication of effort and conflicting supervisory directives amongst the prudential regulators and the
CFPB. The regulators work cooperatively to share exam schedules for covered institutions and covered activities to plan simultaneous exams, provide final drafts of examination reports for comment, and share supervisory information.

Coordination with Other Federal Banking Agencies
The Board regularly coordinates with other federal banking agencies, including through the development of interagency guidance, to clearly communicate supervisory expectations. The Federal
Reserve also works with the other member agencies of the FFIEC to develop consistent examination principles, standards, procedures, and report formats.12 In addition, the Federal Reserve participates in the Joint Task Force on Fair Lending, composed of all the prudential regulators, the
CFPB, the DOJ, the Federal Housing Finance Agency (FHFA), the Federal Trade Commission, and the
Department of Housing and Urban Development (HUD). Staff also participate in the Interagency
Task Force on Property Appraisal and Valuation Equity, an initiative to address bias in home
appraisals. In February 2022, the Board joined the prudential regulators, the CFPB, HUD, the DOJ,
and the FHFA, in an interagency statement reminding creditors of the ability under ECOA and its
implementing Regulation B to establish special purpose credit programs to meet the credit needs

To access the Board’s Orders on Banking Applications, see https://www.federalreserve.gov/newsevents/
pressreleases.htm.
For these reports, see https://www.federalreserve.gov/supervisionreg/semiannual-reports-banking-applicationsactivity.htm.
For more information, see https://www.ffiec.gov/.

109th Annual Report | 2022

Box 6.1. Responsive Guidance, Research, and Engagement for
Emerging Financial Conditions
During 2022, advancements in fintech and digital banking continued to transform the financial industry.
The Board’s Division of Consumer and Community Affairs (DCCA) focused on keeping pace with fintech’s rapid growth by continuing initiatives to help banks and consumers navigate an expanding variety
of new products and services. As communities continued to cope with the COVID-19 pandemic’s aftermath, understanding current economic conditions helped inform these efforts. While DCCA’s staff
emphasized the importance of risk-mitigation strategies for emerging financial products, its research
and policy analysis functions studied how these developments affect financial inclusion and economic
recovery.

Advancing Risk Management in a Changing Industry
The Board’s supervisory efforts sought to ensure banks effectively manage risks associated with
emerging products, including crypto assets.1 With the Division of Supervision and Regulation, DCCA
announced guidance to ensure safe and sound practices for banking organizations engaging in the
crypto-asset sector. Issued in August, these guidelines noted potential concerns with crypto assets and
outlined a notification system to ensure legal permissibility.2 The Board also considered cybersecurity
concerns for financial institutions, releasing an interagency statement to establish computer-security
incident notification requirements for banking organizations and their bank service providers.3
In addition to compliance insights, DCCA applied a data analytics lens to risk management in lending.
At the 2022 Fair Lending Interagency Webinar, the Board advised on how updated U.S. census tracts
affect redlining risk related to lending, assessment areas, branching, and other activities.4 The event
also featured information on how data inform supervisory strategies for appraisal bias and development of special purpose credit programs.5

Engaging Consumers and Communities to Inform Policy and Research
The Board examined ways to adapt to a fast-changing financial landscape and leverage expanded use
of virtual meeting platforms. In March, the Board and the Office of the Comptroller of the Currency held
the first virtual public meeting for a merger and acquisition application, inviting comments evaluating
the banks’ prospects, the needs of the communities they serve, and other factors.6 DCCA staff and the
Federal Reserve Bank of Cleveland shared insights from this process in the article, “Merger Lessons
Learned,” for the second 2022 issue of Consumer Compliance Outlook.7 Among considerations facing
financial institutions during mergers and acquisitions, this article identified operational challenges in
integrating core banking systems and ensuring risk compliance in bank–fintech partnerships.
The Board’s research and policy functions assessed the evolving relationship between financial innovation and inclusion. Released in May, the Economic Well-Being of U.S. Households in 2021 report examined responses to the ninth annual Survey of Household Economics and Decisionmaking (SHED).8 This
SHED survey included questions about the use of cryptocurrencies and “Buy Now, Pay Later” products.
Other surveys gathered data to assess how new lending services affect small businesses seeking
(continued)
1

4
5

6
7
8

See https://www.federalreserve.gov/supervisionreg/caletters/2022.htm for consumer compliance supervisory guidance issued in
2022.
See supervision and regulation (SR)/community affairs (CA) letter SR 22-6/CA 22-6, “Engagement in Crypto-Asset-Related Activities
by Federal Reserve-Supervised Banking Organizations,” https://www.federalreserve.gov/supervisionreg/srletters/SR2206.htm.
See SR letter 22-4/CA 22-3, “Contact Information in Relation to Computer-Security Incident Notification Requirements,”
https://www.federalreserve.gov/supervisionreg/srletters/SR2204.htm.
See https://www.consumercomplianceoutlook.org/Outlook-Live/2022/2022-Interagency-Fair-Lending-Webinar/.
See CA letter 22-2, “Interagency Statement on Special Purpose Credit Programs Under the Equal Credit Opportunity Act and
Regulation B,” https://www.federalreserve.gov/supervisionreg/caletters/caltr2202.htm.
See https://www.federalreserve.gov/foia/us-bancorp-mufg-union-bank-application-materials.htm.
See https://www.consumercomplianceoutlook.org/2022/second-issue/merger-lessons-learned/.
See https://www.federalreserve.gov/consumerscommunities/shed.htm.

Consumer and Community Affairs

Box 6.1—continued
credit. The Federal Reserve released the report Clicking for Credit: Experiences of Online Lender Applicants from the Small Business Credit Survey.9 Among other findings, this report noted that Black- and
Hispanic-owned firms were more likely than White- and Asian-owned firms to apply to online lenders.
Online lenders, also referred to as fintech lenders, use data-driven processes and technology for underwriting, pricing, services, and delivering funds to borrowers.
The Board analyzed innovation and credit access through the lens of ongoing economic recovery. Community Advisory Council members provided updates on how low- and moderate-income communities
were faring, noting current trends in small business lending, mortgages, and the labor market.10 In
September, the Board’s Fed Listens session convened leaders from a range of sectors to discuss the
challenges and opportunities of transitioning to a post-pandemic economy.11 The Federal Reserve held
the 2022 Community Development Research Seminar Series, Toward an Inclusive Recovery, featuring
three sessions focused on the pandemic’s implications for wealth, labor, and education among lowerincome households. The Board-hosted session explored how pandemic-related disruption in K-12 and
higher education, which highlighted how technological access and training support equitable opportunity, could affect workforce development and labor market outcomes.12
9

See https://www.clevelandfed.org/publications/cd-reports/2022/sr-20220816-clicking-for-creditexperiences-of-online-lender-applicants-from-sbcs. To access the Federal Reserve’s 2021 Small Business Credit Survey, see
https://www.fedsmallbusiness.org/survey.
10
See https://www.federalreserve.gov/aboutthefed/cac.htm for further information.
11
See https://www.federalreserve.gov/conferences/fed-listens-transitioning-to-the-post-pandemic-economy.htm.
12
See https://fedcommunities.org/community-development-research-seminar-series/2022-toward-inclusive-recovery/.

of specified classes of persons.13 Later in 2022, the Board joined the prudential regulators, the
CFPB, and state financial regulators in issuing a statement announcing that they would provide
appropriate regulatory assistance to those institutions subject to their supervision that suffered
operational impacts from Hurricanes Fiona and Ian, as well as encouraging institutions operating
in the affected areas to meet the financial services needs of their communities.14

Updating Examination Procedures
In 2022, Board staff worked with other federal banking agencies to develop and revise examination procedures to provide clarity on supervisory expectations regarding consumer compliance.
In December, the Board issued revised examination procedures for use in connection with the Fair
Debt Collection Practices Act (FDCPA) to reflect amendments to Regulation F published by the
CFPB in 2020 and 2021.15 These updates addressed communications in connection with debt
collection, prohibitions on harassment or abuse, false or misleading representations, and unfair
practices in debt collection. They also clarified the information that a debt collector must provide
to a consumer at the outset of debt collection communications and addressed consumer protec-

13
14
15

See https://www.federalreserve.gov/supervisionreg/caletters/caltr2202.htm.
See https://www.federalreserve.gov/newsevents/pressreleases/bcreg20220929a.htm.
See https://www.federalreserve.gov/supervisionreg/caletters/caltr2209.htm.

109th Annual Report | 2022

tion concerns related to passive collections and the collection of debt that is beyond the statute of
limitations.

Interagency Questions and Answers for Interagency Flood Insurance Proposal
In May, five federal regulatory agencies, including the Board, issued revised Interagency Questions
and Answers Regarding Private Flood Insurance.16 These Interagency Questions and Answers are
intended to assist lenders in meeting their responsibilities under the federal flood insurance law
and increase public understanding of the agencies’ respective flood insurance regulations.17
Significant topics addressed by the revisions include guidance related to major amendments to
the flood insurance laws regarding the escrow of flood insurance premiums, the detached structure exemption, force placement procedures, and the acceptance of flood insurance policies
issued by private insurers.
This issuance consolidated the questions and answers proposed by the agencies in July 2020 and
the questions and answers proposed by the agencies in March 2021 into one set of Interagency
Questions and Answers Regarding Flood Insurance.

Outreach
The Federal Reserve maintains a comprehensive public outreach program to promote consumer
protection, financial inclusion, and community reinvestment. During 2022, the Board continued to
enhance its program, delivering timely, relevant compliance information to the banking industry,
experienced examiners, and other regulatory personnel.
In 2022, three issues of Consumer Compliance Outlook were released, discussing regulatory and
supervisory topics of interest to compliance professionals.18 This publication is distributed to
state member banks as well as to bank and savings and loan holding companies supervised by
the Federal Reserve, among other subscribers. In addition, the Federal Reserve offered two Outlook Live seminars, the “2022 Fair Lending Interagency Webinar” and the “2022 Interagency Flood
Insurance Q&A Webinar.”19 During the Fair Lending Interagency Webinar, the Federal Reserve discussed a report it released publicly that provides information by metropolitan statistical area
(MSA) that can help lenders and the public understand the census tract boundary and demo-

18
19

The agencies are the Board of Governors of the Federal Reserve System, the Farm Credit Administration, the FDIC, the
NCUA, and the OCC.
For more information, see Federal Register notice 87 Fed. Reg. 32,826 (May 31, 2022) at https://www.govinfo.gov/
content/pkg/FR-2022-05-31/pdf/2022-10414.pdf and the press release at https://www.federalreserve.gov/
newsevents/pressreleases/bcreg20220511a.htm.
For more information and to access the publications, see https://consumercomplianceoutlook.org/.
For more information and to access the webinar, see https://www.consumercomplianceoutlook.org/Outlook-Live/2022/
2022-Interagency-Flood-Insurance-Q-and-A-Webinar/.

Consumer and Community Affairs

graphic composition changes that result from the 2020 decennial census. These census reports
by MSA will help banks assess and manage redlining risk.20

Examiner Training
The Federal Reserve’s Examiner Training program supports the ongoing professional development
of consumer compliance supervisory staff, from an initial introduction to the Federal Reserve
System through the development of proficiency in consumer compliance topics sufficient to earn
an examiner’s commission and beyond. The goal of these efforts is to ensure that examiners have
the skills necessary to meet their supervisory responsibilities now and in the future.

Consumer Compliance Examiner Commissioning Program
The Consumer Compliance Examiner Commissioning Program is designed to provide an examiner
with (1) a foundation for supervision in the Federal Reserve System and (2) the skills necessary to
effectively perform examiner-in-charge responsibilities at a non-complex community bank.21 On
average, examiners progress through a combination of self-paced online learning, classroom offerings, virtual instruction, and on-the-job training over a period of two to three years. Achievement is
measured by completing the required course content, demonstrating adequate on-the-job knowledge, and passing a professionally validated proficiency examination.
In 2022, 10 examiners passed the Consumer Compliance Proficiency Examination. The combination of multiple training delivery channels offers learners and Reserve Banks an ability to customize learning and meet training demands more individually and cost effectively.

Continuing Professional Development
In addition to providing core examiner training, continuing, career-long learning is offered. Opportunities for continuing professional development include online learning modules, special projects
and assignments, self-study programs, rotational assignments, instruction at System schools,
mentoring programs, and the Consumer Compliance Senior Forum held every 18 months. Staff
have access to continuing professional development resources on a variety of topics, including
learning assets for examiners moving into examiner responsibilities at larger financial institutions
and other curated learning content.
In 2022, the System continued to offer Rapid Response sessions to provide timely training to
examiners through webinars and case studies on emerging issues or to address urgent training
needs that result from, for example, the implementation of new laws or regulations. Four Rapid
20

To view the webinar and the census reports by MSA, see “Consumer Compliance Outlook Live” at https://
consumercomplianceoutlook.org/outlook-live/archives/.
An overview of the Federal Reserve System’s Examiner Commissioning Program for assistant examiners is set forth in
SR letter 17-6/CA 17-1, “Overview of the Federal Reserve’s Supervisory Education Programs.” See https://
www.federalreserve.gov/supervisionreg/srletters/sr1706.htm.

109th Annual Report | 2022

Response sessions with an exclusive consumer compliance focus were designed, developed, and
presented to System staff during 2022. An additional 40 Rapid Response sessions were offered
that addressed a broader range of supervisory issues, including sessions in which consumer compliance topics were touched upon.

Responding to Consumer Complaints and Inquiries
The Federal Reserve investigates complaints against state member banks and selected nonbank
subsidiaries of BHCs (Federal Reserve-regulated entities), and forwards complaints against other
creditors and businesses to the agency with relevant authority. Each Reserve Bank investigates
complaints against Federal Reserve-regulated entities in its District. The Federal Reserve also
responds to consumer inquiries on a broad range of banking topics, including consumer protection
questions.
Federal Reserve Consumer Help (FRCH) processes consumer complaints and inquiries centrally. In
2022, FRCH processed 33,513 cases. Of these cases, 19,628 were inquiries and the remainder
(13,885) were complaints, with most cases received directly from consumers and involving financial institutions other than state member banks supervised by the Federal Reserve. Approximately
13 percent of cases were referred to the Federal Reserve from other federal and state agencies.
Consumers contacted FRCH by a variety of different channels: 57 percent of the FRCH consumer
contacts occurred by telephone, and 40 percent of complaint and inquiry submissions were made
electronically (via email, online submissions, and fax). The online form page received 50,122
visits during the year.

Consumer Complaints
Complaints against Federal Reserve-regulated entities totaled 4,853 in 2022. Of the total, 89 percent (4,304) were closed, and 11 percent were still under investigation.
Approximately 3 percent of the closed complaints were pending the receipt of additional information from consumers, referred to another regulatory agency, or withdrawn by the consumer.
Complaints about Products and Practices
During 2022, the Federal Reserve monitored consumer complaints by product and common subjects of complaint (see table 6.1).
The Board also tracked complaints that cite discrimination. Seventeen complaints alleging credit
discrimination based on prohibited borrower traits or rights were received in 2022. Eleven discrimination complaints were related to the race, color, national origin, or ethnicity of the applicant or
borrower. Three discrimination complaints were related to either the age or sex of the applicant or

Consumer and Community Affairs

borrower. The remainder were related to
handicap and public assistance income. Of
the closed complaints alleging credit discrimi-

Table 6.1. Complaints against state member
banks and selected nonbank subsidiaries of
bank holding companies by product and
subject of complaint, 2022

nation based on a prohibited basis in 2022,
there were two with a violation specific to the

Product/subject of complaint

Percent

Deposit/bank products

adverse action notice; however, they were not

Deposit error resolution

related to illegal credit discrimination.

Funds availability not as expected

Fraud/forgery

In 38 percent of investigated complaints

Restricted/blocked accounts

against Federal Reserve-regulated entities, evi-

Other

Credit card accounts

Fraud/forgery

Inaccurate credit reporting

dence reviewed did not reveal an error or violation. Of the remaining 62 percent of investigated complaints, 15 percent were identified

Request to validate the debt owed

errors that were corrected by the bank; 4 per-

Inability to pay

cent were deemed violations of law; and the

Other

remainder included matters involving litigation,

Prepaid accounts

externally and internally referred complaints,

Restricted/blocked accounts

Inability to withdraw funds on the card

Error resolution

complaints resolved by the bank after the consumer filed the complaint with FRCH, or information was provided to the consumer.

Consumer Laws and
Regulations
Throughout 2022, the Board continued to
administer its regulatory responsibilities with
respect to certain entities and specific statu-

Fraud/forgery
Other

7
19

Nondeposit & bank services

Other products

Real estate loans

Note: Other products include commercial products, nondeposit
products, vehicle loans, customer service, and bank services.
Real estate loans include adjustable-rate mortgages, residential
construction loans, open-end home equity lines of credit, home
improvement loans, home purchase loans, home refinance/
closed-end loans, and reverse mortgages.

tory provisions of the consumer financial services and fair lending laws. This included
drafting regulations and issuing compliance guidance for the industry and the Reserve Banks and
fulfilling its role in consulting with the CFPB on consumer financial services and fair lending regulations for which the CFPB has rulemaking responsibility.

Outreach
In May, the Board, the FDIC, and the OCC issued an interagency CRA NPR after receiving substantial feedback from stakeholders. In addition to extensive outreach and research, the Board col-

109th Annual Report | 2022

lected public comments on the NPR through August. The Board also participated in an interagency
webinar that provided an overview of the CRA proposal and its objectives.22
Information and resources about the CRA NPR is available on the Board’s website at https://
www.federalreserve.gov/consumerscommunities/community-reinvestment-act-proposedrulemaking.htm.

Updating Annual Indexes for Consumer Regulations
Annual Indexing of Exempt Consumer Credit and Lease Transactions
In October 2022, the Board and the CFPB announced that the dollar thresholds in Regulation Z
(Truth in Lending) and Regulation M (Consumer Leasing) that will apply in 2023 for determining
exempt consumer credit and lease transactions will increase from $61,000 in 2022 to $66,400
for 2023. These thresholds are set pursuant to statutory changes enacted by the Dodd-Frank Act
that require adjusting these thresholds annually based on the annual percentage increase in the
Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Transactions at or
below the thresholds are subject to the protections of the regulations.23

Annual Indexing of Threshold for Small Loan Exemption from Appraisal Requirements for
Higher-Priced Mortgage Loans
In October 2022, the Board, the CFPB, and the OCC announced that the threshold for exempting
loans from special appraisal requirements for higher-priced mortgage loans would increase from
$28,500 for 2022 to $31,000 for 2023.24 The Dodd-Frank Act amended TILA to add special
appraisal requirements for higher-priced mortgage loans, including a requirement that creditors
obtain a written appraisal based on a physical visit to the home’s interior before making a higherpriced mortgage loan. The rules implementing these requirements contain an exemption for loans
of $25,000 or less and also provide that the exemption threshold will be adjusted annually to
reflect increases in the CPI-W.

Annual Adjustment to Community Reinvestment Act Asset-Size Thresholds for Small and
Intermediate Small Banks
In December 2022, the Board and the FDIC announced the annual adjustment to the asset-size
thresholds used to define small bank and intermediate small bank under the CRA regulations.25
Financial institutions are evaluated under different CRA examination procedures based on their
asset-size classification. Those meeting the small and intermediate small bank asset-size thresh22
23
24
25

See https://fedcommunities.org/cra-reform-update-may-2022-video/.
For more information, see https://www.federalreserve.gov/newsevents/pressreleases/bcreg20221013b.htm.
For more information, see https://www.federalreserve.gov/newsevents/pressreleases/bcreg20221013a.htm.
For more information, see https://www.federalreserve.gov/newsevents/pressreleases/bcreg20221219a.htm.

Consumer and Community Affairs

olds are not subject to the reporting requirements applicable to large banks unless they choose to
be evaluated as a large bank.
Annual adjustments to these asset-size thresholds are based on the change in the average of the
CPI-W, not seasonally adjusted, for each 12-month period ending in November, with rounding to the
nearest million.
As a result of the 8.60 percent increase in the CPI-W for the period ending in November 2022, the
definitions of small bank and intermediate small bank for CRA examinations were changed as follows:
• Small bank means a bank that, as of December 31 of either of the prior two calendar years, had
assets of less than $1.503 billion.
• Intermediate small bank means a small bank with assets of at least $376 million as of
December 31 of both of the prior two calendar years and less than $1.503 billion as of
December 31 of either of the prior two calendar years.
These asset-size threshold adjustments took effect on January 1, 2023.

Consumer Research and Analysis of Emerging Issues and
Policy
Throughout 2022, the Board analyzed emerging issues in consumer financial services practices in
order to understand their implications for the consumer risk analyses and supervisory policies that
are core to the Federal Reserve’s functions. This research and analysis also provided insight into
consumer financial decisionmaking.

Researching Issues Affecting Consumers and Communities
In 2022, the Board explored various issues related to consumers and communities by convening
experts, conducting original research, and fielding surveys as part of its continuing commitment to
gain insights into consumers’ financial and communities’ economic development experiences.
This work was essential to identifying emerging issues and understanding the progress of economic recovery after the COVID-19 pandemic.

Household Economics and Decisionmaking
The Board conducts regular internet panel surveys to gather data on consumers’ experiences and
perspectives on various issues of interest through the Survey of Household Economics and Decisionmaking.

109th Annual Report | 2022

The Board first launched the survey in 2013 to better understand consumer decisionmaking in the
wake of the Great Recession, with the aim of capturing a snapshot of the financial and economic
well-being of U.S. households. In doing so, the SHED collects information on households that is
not readily available from other sources or is not available in combination with other variables of
interest.
Results of the Board’s ninth annual SHED were published in the report Economic Well-Being of U.S.
Households in 2021, released in May 2022.26 The survey results reflected the self-reported financial conditions of 11,874 respondents at the end of 2021.
The survey asked respondents about specific aspects of their financial lives, including the following areas:
• employment and informal work
• income and savings
• economic preparedness
• banking and credit
• housing and living arrangements
• K-12 education and higher education
• education debt and student loans
• retirement
The 2021 survey results highlighted the positive effects of the economic recovery on the individual
financial circumstances of U.S. families, despite persistent concerns that people expressed about
the national economy. In 2021, perceptions about the strength of the national economy declined
slightly. Yet self-reported financial well-being increased to the highest rate since the survey began
in 2013. The share of prime-age adults not working because they could not find work had returned
to pre-pandemic levels. More adults were able to pay all their monthly bills in full than in either
2019 or 2020. Additionally, the share of adults who would pay a $400 emergency expense using
cash or its equivalent increased, reaching a new high since the survey began in 2013.
The report also highlights several new topics added to the survey in 2021, such as disruptions
from natural disasters, rental debt, and employer vaccine mandates. These new questions provide
additional context on the experiences of U.S. adults in handling unexpected expenses, paying for
housing, and navigating ongoing changes in the labor market.

For the report and related data from the Survey of Household Economics and Decisionmaking, see https://
www.federalreserve.gov/consumerscommunities/shed.htm.

Consumer and Community Affairs

To better understand consumer experiences with emerging products, cryptocurrencies and “Buy
Now, Pay Later” products were included on the survey for the first time. See box 6.1 for more information on the SHED’s inclusion of emerging financial products.
Additionally, the report provided insights into long-standing issues related to individuals’ personal
financial circumstances, including returns to education, housing situations, and retirement savings. In many cases, the survey found that disparities by education, race and ethnicity, and income
persisted in 2021.
In addition to fielding and analyzing these surveys, economists in the Division of Consumer and
Community Affairs published articles throughout the year in various publications and journals, contributing to a body of research exploring issues impacting consumers and communities.27

Community Development Research Seminar Series
In 2022, the Board and the Reserve Banks continued the Federal Reserve System Community
Development Research Seminar Series for the second year with the theme, Toward an Inclusive
Recovery. This series convenes researchers, policymakers, and practitioners across sectors to
consider important issues that low- to moderate-income people and communities face, exploring
the latest research to inform effective strategies to advance opportunity for economically vulnerable households and areas.
The seminars featured keynote remarks by Governor Michelle Bowman, Federal Reserve Bank of
St. Louis President Jim Bullard, and Federal Reserve Bank of Minneapolis President Neel
Kashkari. See box 6.1 for information about the Board’s participation in the Community Development Research Seminar Series.

For working papers by Division of Consumer and Community Affairs researchers, see Maureen Cowhey, Seung Jung Lee,
Thomas Popeck Spiller, and Cindy M. Vojtech, “Sentiment in Bank Examination Reports and Bank Outcomes,” Finance
and Economics Discussion Series 2022-077 (Washington: Board of Governors of the Federal Reserve System,
November 2022), https://doi.org/10.17016/FEDS.2022.077; Johanna Catherine Maclean, Sebastian Tello-Trillo, and
Douglas Webber, “Losing Insurance and Psychiatric Hospitalizations,” Finance and Economics Discussion Series
2022-069 (Washington: Board of Governors of the Federal Reserve System, October 2022), https://doi.org/10.17016/
FEDS.2022.069; Kenneth P. Brevoort, “Does Giving CRA Credit for Loan Purchases Increase Mortgage Credit in Low-toModerate Income Communities?,” Finance and Economics Discussion Series 2022-047 (Washington: Board of Governors of the Federal Reserve System, July 2022), https://doi.org/10.17016/FEDS.2022.047; Douglas Webber,
“Decomposing Changes in Higher Education Return on Investment Over Time,” FEDS Notes (Washington: Board of Governors of the Federal Reserve System, July 13, 2022), https://doi.org/10.17016/2380-7172.3155; Jeff Larrimore, Jacob
Mortenson, and David Splinter, “Income Declines During COVID-19,” FEDS Notes (Washington: Board of Governors of the
Federal Reserve System, July 7, 2022), https://doi.org/10.17016/2380-7172.3063; Jeff Larrimore, Jacob Mortenson,
and David Splinter, “Unemployment Insurance in Survey and Administrative Data,” FEDS Notes (Washington: Board of
Governors of the Federal Reserve System, July 5, 2022), https://doi.org/10.17016/2380-7172.3135; Samuel Dodini,
Jeff Larrimore, and Anna Tranfaglia, “Financial Repercussions of SNAP Work Requirements,” Finance and Economics Discussion Series 2022-030 (Washington: Board of Governors of the Federal Reserve System, May 2022), https://doi.org/
10.17016/FEDS.2022.030; and Avinash Moorthy, Theodore F. Figinski, and Alicia Lloro, “Revisiting the Effect of Education on Later Life Health,” Finance and Economics Discussion Series 2022-007 (Washington: Board of Governors of the
Federal Reserve System, February 2022), https://doi.org/10.17016/FEDS.2022.007.

100 109th Annual Report | 2022

Analysis of Emerging Issues
Board staff analyze data and anticipate trends, monitor legislative activity, form working groups,
and organize expert roundtables to identify emerging consumer risks and inform supervision,
research, and policy.
In 2022, the Board analyzed a broad range of issues in financial services markets that potentially
pose risks to consumers. Topics of interest included
• assessing consumer risk during and after the pandemic,
• understanding the effects of inflation on low-income families,
• tracking housing trends, and
• monitoring credit for small businesses.
The Board convened a consumer risk-focused workshop series for staff from the Board, Reserve
Banks, and other federal agencies in September. The discussion considered new consumer financial products in the context of product design, consumer risk, financial inclusion, and supervisory
insights. In addition, Board subject matter experts examined credit availability for smaller firms
that may lack the financing options and in-house resources of larger companies. See box 6.1 for
information about small businesses’ experiences with online lenders.

Community Development
The Federal Reserve System’s community development function promotes economic growth and
financial stability for underserved households and communities through research and public outreach. Community development is largely a decentralized function within the Federal Reserve
System, and the Community Affairs Officers at each of the 12 Reserve Banks design strategies to
respond to the specific needs and interests of community development stakeholders in their
respective Districts. Board staff provide oversight for alignment with Board objectives and coordination of System priorities.

Perspectives from Main Street
The community development function works to ensure that the voices of consumers and communities inform policy and research and solicits diverse views on issues affecting the economy and
financial markets. These perspectives help improve research, policies, and transparency.
To that end, the Board partnered with the Reserve Banks and seven national partners on the
2022 Perspectives from Main Street survey to better understand the progress of economic
recovery after the COVID-19 pandemic. Through a convenience sampling method that relied on
contact databases, the online survey compared conditions in low- and moderate-income communi-

Consumer and Community Affairs 101

ties during August 2022 relative to 2021. Announced in November 2022, the findings showed
signs of recovery.28 Of respondents, more than 40 percent expected their communities to be
almost or fully recovered by 2023. However, 30 percent of respondents continued to experience
significant disruptions, with staff shortages and lack of childcare cited as the main challenges.
Similarly, the Federal Reserve promotes access to credit and financial services for lower-income
communities of color by understanding and promoting the viability of minority depository institutions (MDIs). The Board released Preserving and Promoting Minority Depository Institutions in September 2022, an annual report informing the public about Federal Reserve research, events, and
other initiatives to preserve and support MDIs.29 During the semiannual Community Advisory
Council (CAC) meetings, council members noted the importance of liquidity for MDIs and community development financial institutions. The Council also shared perspectives on local credit and
economic conditions in housing, labor markets, and small businesses.30

28
29
30

See https://fedcommunities.org/data/main-street-covid19-survey-2022/.
See https://www.federalreserve.gov/publications/files/promoting-minority-depository-institutions-2022.pdf.
Records of the meetings of the CAC are available at https://www.federalreserve.gov/aboutthefed/cac.htm.

Appendixes

105

Federal Reserve System Organization

Congress designed the Federal Reserve System to give it a broad perspective on the economy and
on economic activity in all parts of the nation. As such, the System is composed of a central, governmental agency—the Board of Governors—in Washington, D.C., and 12 regional Federal Reserve
Banks. This section lists key officials across the System, including the Board of Governors, its officers, Federal Open Market Committee members, several System councils, and Federal Reserve
Bank and Branch directors and officers for 2022.

Board of Governors
Members
The Board of Governors of the Federal Reserve System is composed of seven members, who are
nominated by the President and confirmed by the Senate. The Chair and the Vice Chair of the
Board are also named by the President from among the members and are confirmed by the
Senate. This section lists Board members who served in 2022. For a full listing of Board members
from 1914 through the present, visit www.federalreserve.gov/aboutthefed/bios/board/
boardmembership.htm.
Jerome H. Powell

Michael S. Barr

Lisa D. Cook (as of May 23, 2022)

Chair

Vice Chair for Supervision (as of
July 19, 2022)

Philip N. Jefferson (as of

Lael Brainard
Vice Chair (as of May 23, 2022)

Michelle W. Bowman

May 23, 2022)

Christopher J. Waller

Richard H. Clarida
Vice Chair (through January 14, 2022)

Divisions and Officers
Fifteen divisions support and carry out the mission of the Board of Governors, which is based in
Washington, D.C.

Office of Board Members
Michelle A. Smith

Lucretia M. Boyer

Terrence E. Fischer

Assistant to the Board
and Director

Assistant to the Board (through
October 1, 2022)

Special Assistant to Board for Public
Information (as of June 19, 2022)

Linda L. Robertson

Jennifer C. Gallagher

Assistant to the Board

Special Assistant to the Board
for Congressional Liaison

106 109th Annual Report | 2022

Jon Faust1

Joshua H. Gallin2

Senior Special Adviser
to the Chair

Special Adviser to the Chair

Legal Division
Mark E. Van Der Weide

Alicia S. Foster

Jason A. Gonzalez

General Counsel

Deputy Associate
General Counsel

Assistant General Counsel

Deputy General Counsel

Alison M. Thro

Assistant General Counsel

Richard M. Ashton

Deputy Associate
General Counsel

Jay R. Schwartz4

Jean C. Anderson

Deputy General Counsel

Charles C. Gray
Deputy General Counsel

Reena Sahni

Cary K. Williams
Deputy Associate
General Counsel (through
March 1, 2022)

Asad L. Kudiya3

Assistant General Counsel

Dafina V. Stewart 5
Assistant General Counsel (as of
January 3, 2022)

Evan H. Winerman

Associate General Counsel

Sean D. Croston

Alvin D. Williams

Assistant General Counsel (as of
June 5, 2022)

Assistant General Counsel (as of
January 16, 2022)

Ann Misback

Yao-Chin Chao

Michele T. Fennell

Secretary of the Board

Deputy Associate Secretary

Associate General Counsel

Office of the Secretary

Margaret M. Shanks
Deputy Secretary

Division of International Finance
Beth Anne Wilson

Carol C. Bertaut

Andrea Raffo

Director

Senior Associate Director

Shaghil Ahmed

James A. Dahl

Associate Director (through August 20, 2022)

Deputy Director

Senior Associate Director

Stephanie E. Curcuru

Paul R. Wood

Deputy Director

Senior Associate Director

Sally M. Davies

Matteo Iacoviello

Deputy Director

Associate Director

Brian M. Doyle
Deputy Director
1
2
3
4
5

Jon Faust served as an adviser to Chair Powell in 2022.
Joshua H. Gallin served as an adviser to Chair Powell in 2022.
Asad L. Kudiya served as an adviser to Governor Waller in 2022.
Jay R. Schwartz served as an adviser to Governor Bowman in 2022.
Dafina V. Stewart served as an adviser to Governor Jefferson in 2022.

Jason J. Wu
Associate Director

Daniel Beltran
Deputy Associate Director

Viktors Stebunovs
Deputy Associate Director

Federal Reserve System Organization 107

Robert J. Vigfusson

Jasper J. Hoek

Brett D. Berger

Deputy Associate Director (through
February 1, 2022)

Assistant Director

Senior Adviser

Seung Jung Lee

Ricardo Correa

Dario Caldara

Assistant Director

Senior Adviser

Assistant Director (as of September 11, 2022)

Emre Yoldas

Martin R. Bodenstein

Assistant Director

Adviser (as of September 11, 2022)

Andreas W. Lehnert

Skander J. Van den Heuvel

Ceyhun Durdu

Director

Associate Director

Assistant Director

Michael T. Kiley

Luca Guerrieri

Mona T. Elliot

Deputy Director

Deputy Associate Director

William F. Bassett

Namirembe E. Mukasa

Senior Adviser (through October 22, 2022)

Senior Associate Director

Deputy Associate Director and
Chief of Staff

Adele Cecile Morris

Chiara Scotti6

Andrew M. Cohen

Deputy Associate Director

Adviser

Andrea De Michelis
Assistant Director

Division of Financial Stability

Elizabeth C. Klee
Senior Associate Director

John W. Schindler
Senior Associate Director

Senior Adviser

David Arseneau
Assistant Director

Division of Monetary Affairs
Trevor A. Reeve

Nellisha Ramdass

Rebecca E. Zarutskie9

Director

Senior Associate Director

Deputy Associate Director

James A. Clouse

Min Wei

Brian Bonis

Deputy Director

Senior Associate Director

Assistant Director

Rochelle M. Edge

Eric C. Engstrom7

Giovanni Favara

Deputy Director

Associate Director

Assistant Director

David H. Bowman

Christopher J. Gust

Etienne Gagnon

Senior Associate Director

Associate Director

Assistant Director

Margaret G. DeBoer

Karen L. Brooks

Dan Li

Senior Associate Director

Deputy Associate Director

Assistant Director

J. David Lopez-Salido

Laura Lipscomb8

Elizabeth L. Marx

Senior Associate Director

Deputy Associate Director

Assistant Director

Matthew M. Luecke

Zeynep Senyuz

Senior Associate Director

Deputy Associate Director

6
7
8
9

Chiara Scotti served as an adviser to Governor Jefferson in 2022.
Eric C. Engstrom served as associate director in Research and Statistics and Monetary Affairs.
Laura Lipscomb served as an adviser to Vice Chair for Supervision Barr in 2022.
Rebecca E. Zarutskie served as an adviser to Governor Bowman in 2022.

108 109th Annual Report | 2022

Andrew C. Meldrum

Jane E. Ihrig10

Robert J. Tetlow

Assistant Director (as of January 16, 2022)

Senior Adviser

Don H. Kim

Annette Vissing-Jorgensen

Antulio Bomfim

Senior Adviser

Senior Adviser (through September 1, 2022)

Edward M. Nelson

Mark A. Carlson

Senior Adviser

Adviser

Division of Research and Statistics
Stacey Tevlin

Elizabeth K. Kiser

Celso Brunetti

Director

Associate Director

Assistant Director

Jeffrey C. Campione

Timothy A. Mullen

Marco Cagetti

Deputy Director

Associate Director

Assistant Director

Daniel M. Covitz

Erik A. Heitfield

Paul A. Lengermann

Deputy Director

Deputy Associate Director

Assistant Director

William L. Wascher III

Byron F. Lutz

Geng Li

Deputy Director

Deputy Associate Director

Assistant Director

Nicole E. Bennett

Patrick E. McCabe

Binoy K. Agarwal

Senior Associate Director

Deputy Associate Director

Eric M. Engen

Raven S. Molloy

Assistant Director and Chief (as of
May 22, 2022)

Senior Associate Director

Deputy Associate Director

Christopher J. Kurz

Joshua H. Gallin

Norman J. Morin

Senior Associate Director

Deputy Associate Director

Assistant Director and Chief (as of
May 22, 2022)

Diana Hancock

Karen M. Pence

Senior Associate Director

Deputy Associate Director

David E. Lebow

Shane M. Sherlund

Senior Associate Director

Deputy Associate Director

Michael G. Palumbo

Lillian Shewmaker

Senior Associate Director

Deputy Associate Director (through
March 1, 2022)

John J. Stevens
Senior Associate Director

Burcu Duygan-Bump
Associate Director

Eric C. Engstrom
Associate Director

J. Andrew Figura
Associate Director

Glenn R. Follette
Associate Director

Paul A. Smith
Deputy Associate Director

Deborah M. Flores
Assistant Director

Karen Krugman
Assistant Director

Giovanni G. Amisano
Assistant Director

Shawn M. Bruckner
Assistant Director

Kevin B. Moore
Assistant Director

Matthias Paustian
Assistant Director

Gustavo Suarez
Assistant Director

Clara Vega11
Assistant Director

S. Wayne Passmore
Senior Adviser

Jeremy Rudd
Senior Adviser

Steven A. Sharpe
Senior Adviser

Wendy E. Dunn
Adviser

Charles Fleischman
Adviser

10
11

Jane E. Ihrig served as an adviser to Governor Waller in 2022.
Clara Vega served as an adviser to Governor Jefferson in 2022.

Federal Reserve System Organization 109

Division of Supervision and Regulation
Michael S. Gibson

Uzma Wahhab

Steven M. Spurry

Director

Associate Director

Deputy Associate Director

Jennifer J. Burns

John Beebe

Catherine A. Tilford

Deputy Director

Deputy Associate Director

Kate M. Fulton

Karen A. Caplan

Donna J. Webb

Deputy Director

Deputy Associate Director

Arthur W. Lindo

James Diggs

Suzanne L. Williams

Deputy Director

Deputy Associate Director

Mary L. Aiken

Mona T. Elliot

Kathryn L. Ballintine

Senior Associate Director

Deputy Associate Director (through
January 15, 2022)

Assistant Director (as of October 9, 2022)

Christine E. Graham12

Dana L. Burnett

Deputy Associate Director

Assistant Director

Senior Associate Director

Constance M. Horsley

Anthony B. Cain

Richard N. Ragan

Deputy Associate Director (through
July 1, 2022)

Assistant Director

Kavita Jain

Assistant Director

Marta Chaffee
Senior Associate Director

Molly E. Mahar

Senior Associate Director

Lisa H. Ryu
Senior Associate Director

Thomas R. Sullivan
Senior Associate Director

Todd A. Vermilyea

Deputy Associate Director

Kathleen W. Johnson
Deputy Associate Director

Ryan P. Lordos
Deputy Associate Director

Senior Associate Director

Juan C. Climent

Keith J. Coughlin
Assistant Director

Eric L. Kennedy
Assistant Director

Elizabeth K. MacDonald

Lara K. Lylozian

Assistant Director (as of July 3, 2022)

Associate Director

Deputy Associate Director/
Chief Accountant

Brent Richards

Nida Davis

David K. Lynch

Kevin M. Bertsch

Associate Director (through
April 1, 2022)

Christopher Finger

Deputy Associate Director

Susan E. Motyka

Associate Director

Deputy Associate Director (through
September 1, 2022)

Jeffery W. Gunther

T. Kirk Odegard

Associate Director

Anna L. Hewko
Associate Director

Shannon M. Kelly
Associate Director

Assistant Director

April C. Snyder
Assistant Director (as of July 3, 2022)

Emily P. Wells
Assistant Director

Norah M. Barger

Deputy Associate Director

Senior Adviser

Vaishali D. Sack

Fang Du

Deputy Associate Director

Adviser

Robert F. Sarama13

William F. Treacy

Deputy Associate Director

Adviser

Richard A. Naylor II
Associate Director
12
13
14

Christine E. Graham served as an adviser to Vice Chair for Supervision Barr in 2022.
Robert F. Sarama served as an adviser to Governor Waller in 2022.
Juan C. Climent served as an adviser to Governor Jefferson in 2022.

110 109th Annual Report | 2022

Division of Consumer and Community Affairs
Eric S. Belsky

Drew D. Kohan

Angelyque Campbell15

Director

Associate Director (as of
June 21, 2022)

Assistant Director

Joseph A. Firschein

Assistant Director

V. Nicole Bynum
Deputy Director

Anna Alvarez Boyd

Associate Director

Senior Associate Director (through
August 1, 2022)

Phyllis L. Harwell

Benjamin K. Olson

Marisa A. Reid

Senior Associate Director

Associate Director

Amy B. Henderson
Minh-Duc T. Le
Assistant Director

Caterina Petrucco-Littleton
Assistant Director

David E. Buchholz
Deputy Associate Director

Division of Reserve Bank Operations and Payment Systems
Matthew J. Eichner

Stuart E. Sperry

Shannon Hulsandra

Director

Associate Director

Susan V. Foley

Jeffrey D. Walker

Assistant Director/Manager (as of
April 24, 2022)

Deputy Director

Associate Director

Gregory L. Evans

Casey H. Clark

Senior Associate Director

Deputy Associate Director

Edward L. Anderson

Jennifer K. Liu

Sonja R. Danburg

Assistant Director (as of February 27, 2022)

Senior Associate Director

Deputy Associate Director

Jennifer A. Lucier

Jason A. Hinkle

Senior Associate Director

Deputy Associate Director

Assistant Director (as of February 27, 2022)

David C. Mills

Mark D. Manuszak

Senior Associate Director

Deputy Associate Director

Ian D. Spear

Lawrence E. Mize

Mark J. Olechowski

Senior Associate Director (through
August 1, 2022)

Deputy Associate Director (through
July 1, 2022)

Brian A. Lawler

Caio P. Peixoto

Associate Director

Deputy Associate Director

Rebecca L. Royer
Associate Director

Angelyque Campbell served as an adviser to Governor Cook in 2022.

Travis D. Nesmith
Assistant Director and Chief

Emily A. Caron

Assistant Director (as of January 2, 2022)

Nick Trotta
Assistant Director (through
July 1, 2022)

Timothy W. Maas
Senior Adviser

Federal Reserve System Organization 111

Office of the Chief Operating Officer
Patrick J. McClanahan

Sheila Clark

Andrew Leonard

Chief Operating Officer

Chief Diversity Officer

Associate Director

Katherine Tom

Phillip C. Daher

Chief Data Officer

Associate Director

Division of Financial Management
Ricardo Aguilera

Monica Y. Manning

Karen L. Vassallo

Director and Chief
Financial Officer

Associate Director

Thomas Murphy

Kimberly Briggs

Stephen J. Bernard

Associate Director

Deputy Associate Director

Deputy Director

Jeffrey R. Peirce
Associate Director

Division of Management
Winona Varnon

Reginald V. Roach

Katherine Perez

Director

Associate Director

Curtis B. Eldridge

Donna J. Butler

Deputy Associate Director
and Assistant Chief, LEU (through
October 1, 2022)

Senior Associate Director
and Chief, LEU

Deputy Associate Director and
Chief of Staff

Lewis Andrews

Kendra Gastright

Catherine Jack

Senior Associate Director

Deputy Associate Director

Tameika L. Pope

Tim Ly

Senior Associate Director
and CHCO

Deputy Associate Director

Tara Tinsley-Pelitere

Deputy Associate Director

Senior Associate Director and CTO

Ann Buckingham

Timothy E. Markey

Assistant Director

Stewart A. Carroll
Assistant Director

Leah Middleton
Assistant Director

Stephen E. Pearson
Deputy Associate Director

Associate Director

Division of Information Technology
Sharon L. Mowry

Raymond Romero

Sheryl Lynn Warren

Director

Deputy Director (through July 1, 2022)

Senior Associate Director

Andrew V. Krug

Kofi A. Sapong

Rajasekhar R. Yelisetty

Deputy Director (as of
August 15, 2022)

Deputy Director

Senior Associate Director

Glenn S. Eskow

Charles B. Young

Stephen Olden

Senior Associate Director

Deborah Prespare

William K. Dennison

Senior Associate Director

Deputy Associate Director

Deputy Director

112 109th Annual Report | 2022

Can Xuan Nguyen

Herman Ip

Nischala N. Nimmakayala

Deputy Associate Director

Assistant Director (as of May 8, 2022)

Jonathan F. Shrier

Amy Kelley

Assistant Director (as of
January 31, 2022)

Deputy Associate Director

Assistant Director

Virginia M. Wall

Brian Lester

Deputy Associate Director

Assistant Director

Edgar Wang

Scott Meyerle

Deputy Associate Director

Assistant Director

Langston Shaw
Assistant Director

Fred Vu
Assistant Director

Ivan K. Wun
Deputy Associate Director

Office of Inspector General
Mark Bialek

Jason A. Derr

Michael VanHuysen

Inspector General

Assistant Inspector General (as of
October 9, 2022)

Associate Inspector General

Deputy Inspector General

Jina Hwang

Senior Adviser

Cynthia Gray

Assistant Inspector General (as of
October 9, 2022)

Fred Gibson

Deputy Associate Inspector General

Stephen Carroll
Associate Inspector General

Peter Sheridan
Associate Inspector General (through
August 1, 2022)

Jacqueline M. Becker

Federal Reserve System Organization 113

Federal Open Market Committee
The Federal Open Market Committee is made up of the seven members of the Board of Governors; the president of the Federal Reserve Bank of New York; and four of the remaining eleven
Federal Reserve Bank presidents, who serve one-year terms on a rotating basis. During 2022, the
Federal Open Market Committee held eight regularly scheduled meetings (see appendix B,
“Minutes of Federal Open Market Committee Meetings”).

Members
Jerome H. Powell

Lael Brainard

Esther L. George

Chair, Board of Governors

Member, Board of Governors

John C. Williams

James Bullard

President, Federal Reserve Bank of
Kansas City

Vice Chair, President,
Federal Reserve Bank of New York

President, Federal Reserve Bank of
St. Louis

Michael S. Barr

Susan M. Collins

Member, Board of Governors (as of
July 19, 2022)

President, Federal Reserve Bank of
Boston (as of July 1, 2022)

Michelle W. Bowman

Lisa D. Cook

Member, Board of Governors

Member, Board of Governors (as of
May 23, 2022)

Christopher J. Waller

Meredith Black

Naureen Hassan

Neel Kashkari

Interim President, Federal Reserve
Bank of Dallas (through
August 21, 2022)

First Vice President, Federal Reserve
Bank of New York
(through July 17, 2022)

President, Federal Reserve Bank of
Minneapolis

Charles L. Evans

Lorie K. Logan

President, Federal Reserve Bank
of Chicago

President, Federal Reserve Bank of
Dallas (as of August 22, 2022)

Interim First Vice President, Federal
Reserve Bank of New York (as of
July 18, 2022)

Philip N. Jefferson
Member, Board of Governors (as of
May 23, 2022)

Loretta J. Mester
President, Federal Reserve Bank of
Cleveland

Member, Board of Governors

Alternate Members

Patrick Harker
President, Federal Reserve Bank of
Philadelphia

Helen E. Mucciolo

114 109th Annual Report | 2022

Officers
James A. Clouse

Stacey Tevlin

Ellis W. Tallman

Secretary

Economist

Associate Economist

Matthew M. Luecke

Beth Anne Wilson

Geoffrey Tootell

Deputy Secretary

Economist

Associate Economist

Brian J. Bonis

Shaghil Ahmed

William L. Wascher

Assistant Secretary

Associate Economist

Michelle A. Smith

Brian M. Doyle

Lorie K. Logan

Assistant Secretary

Associate Economist

Mark E. Van Der Weide

Carlos Garriga

Manager, System Open
Market Account (through August 21, 2022)

General Counsel

Associate Economist

Michael Held

Joseph W. Gruber

Deputy General Counsel (through
April 7, 2022)

Associate Economist

Richard Ostrander

Associate Economist

Deputy General Counsel (as of
December 13, 2022)

David E. Lebow

Richard M. Ashton
Assistant General Counsel

Trevor A. Reeve
Economist

Beverly Hirtle

Associate Economist

Patricia Zobel
Deputy Manager, System Open Market
Account (through August 21, 2022);
Manager pro tem, System Open
Market Account (as of
August 22, 2022)

Federal Reserve System Organization 115

Board of Governors Advisory Councils
The Federal Reserve Board uses advisory committees in carrying out its varied responsibilities. To
learn more, visit https://www.federalreserve.gov/aboutthefed/advisorydefault.htm.

Federal Advisory Council
The Federal Advisory Council—a statutory body established under the Federal Reserve Act—
consults with and advises the Board of Governors on all matters within the Board’s jurisdiction. It
is composed of one representative from each Federal Reserve District, chosen by the Reserve
Bank in that District. The president and vice president of the council are selected from amongst
council members. The Federal Reserve Act requires the council to meet in Washington, D.C., at
least four times a year. In 2022, the council met on February 2–3, May 11–12, September 7–8,
and November 30–December 1. The council met with the Board on February 3, May 12,
September 8, and December 1, 2022.

Members
District 1

District 5

District 9

Ronald P. O’Hanley

Brian T. Moynihan

Andrew Cecere

Chairman and Chief Executive Officer,
State Street Corporation, Boston, MA

Chairman and Chief Executive Officer,
Bank of America, Charlotte, NC

Chairman, President, and Chief
Executive Officer, U.S. Bancorp,
Minneapolis, MN

District 2

District 6

Marianne Lakes

Rajinder P. Singh

Co-CEO of Consumer & Community
Banking, JPMorgan Chase & Co.,
New York, NY

Chairman, President, and Chief
Executive Officer, BankUnited, Inc.,
Miami Lakes, FL

Jill Castilla

District 3

District 7

District 11

Jeffrey M. Schweitzer

David R. Casper

David Zalman

Chief Executive Officer,
Univest Bank and Trust Co.,
Souderton, PA

Chairman and Chief Executive Officer,
BMO Harris Bank, Chicago, IL

Senior Chairman and Chief Executive
Officer, Prosperity Bancshares/
Prosperity Bank, El Campo, TX

District 10
President and Chief Executive Officer,
Citizens Bank of Edmond, Edmond, OK

District 8
District 4
William S. Demchak
Chairman, President, and Chief
Executive Officer, PNC Financial
Services Group, Pittsburgh, PA

D. Bryan Jordan
President and Chief Executive Officer,
First Horizon Corporation,
Memphis, TN

District 12
Nandita Bakhshi
President and Chief Executive Officer,
Bank of the West, San Francisco, CA

116 109th Annual Report | 2022

Officers
D. Bryan Jordan

Herb Taylor

Luba Romanyuk

President

Secretary

Deputy Secretary

Rajinder P. Singh
Vice President

Community Depository Institutions Advisory Council
The Community Depository Institutions Advisory Council advises the Board of Governors on the
economy, lending conditions, and other issues of interest to community depository institutions.
Members are selected from among representatives of banks, thrift institutions, and credit unions
who are serving on local advisory councils at the 12 Federal Reserve Banks. One member of each
of the Reserve Bank councils serves on the Community Depository Institutions Advisory Council.
The president and vice president are selected from amongst council members. The council usually
meets with the Board twice a year in Washington, D.C. In 2022, the council met on April 7 and
November 17.

Members
District 1

District 5

District 9

Kathryn G. Underwood

Dabney T.P. Gilliam Jr.

Melodie Carlson

Chairman, President, Ledyard National
Bank, Hanover, NH

President and Chief Executive Officer,
The Bank of Charlotte County,
Phenix, VA

Chief Operating Officer, Sunrise Banks,
St. Paul, MN

District 2
Faheem A. Masood

District 10
District 6

President and Chief Executive Officer,
ESL Federal Credit Union,
Rochester, NY

David R. Melville III

District 3

District 7

Jeane M. Vidoni

Kent A. Liechty

President and Chief Executive Officer,
Penn Community Bank, Perkasie, PA

President and Chief Executive Officer,
First Bank of Berne, Berne, IN

District 4

District 8

Chuck Sulerzyski

Marnie Older

President and Chief Executive Officer,
Peoples Bank, Marietta, OH

Chief Executive Officer and Director,
Stone Bank, Little Rock, AR

President and Chief Executive Officer,
b1Bank, Baton Rouge, LA

Kim DeVore
President and Chief Executive Officer,
Jonah Bank of Wyoming, Casper, WY

District 11
Tracy Harris
President and Chief Executive Officer,
National Bank & Trust, La Grange, TX

District 12

Officers
David R. Melville, III

Jeane M. Vidoni

President

Vice President

Janet Silveria
President and Chief Executive Officer,
Community Bank of Santa Maria,
Santa Maria, CA

Federal Reserve System Organization 117

Community Advisory Council
The Community Advisory Council was formed in 2015 to advise the Board of Governors on the economic circumstances and financial services needs of consumers and communities, with a particular focus on the concerns of low- and moderate-income populations. The council is composed
of a diverse group of experts and representatives of consumer and community development organizations and interests, including from such fields as affordable housing, community and economic
development, employment and labor, financial services and technology, small business, and asset
and wealth building. One member of the council serves as its chair. The council first met with the
Board in November 2015, and meets with the Board twice each year. In 2022, the council met
with the Board on May 19 and October 20.

Members
Ivye Allen

Chan U Lee

Eric Robertson

President, Foundation for the Mid
South, Jackson MS

President and CEO, Devine & Gong,
Inc., Oakland, CA

Executive Director, The Formanek
Foundation, Memphis, TN

Daniel Betancourt

Darlene Lombos

Bill Schlesinger

President and CEO, Community First
Fund, Lancaster, PA

Executive Secretary-Treasurer, Boston
Labor Council, Boston, MA

Co-Director, Project Vida,
El Paso, TX

Dr. Susan Bradbury

Stephanie Mackay

Arjan Schutte

Professor, Community and Regional
Planning, Iowa State University,
Ames, IA

Board Member, Switchpoint Community Resource CenterSalt Lake City, UT

Founder and Managing Partner, Core
Innovation Capital, San Francisco, CA

Christie McCravy

Kendra N. Smith

Tawney Brunsch
Executive Director, Lakota Funds,
Kyle, SD

Executive Director, Louisville Metro
Affordable Housing Trust Fund,
Louisville, KY

Vice President, Community Health,
Bon Secours Mercy Health, Toledo, OH

Melanie Hogan

Dr. Laura Murillo

Executive Director, Linking Employment, Abilities, and Potential (LEAP),
Cleveland, OH

President and CEO, Houston Hispanic
Chamber of Commerce, Houston, TX

Executive Director, Appalachian Impact
Fund, Hazard, KY

Ceyl Prinster
President and CEO, Colorado
Enterprise Fund, Denver, CO

Officers
Tawney Brunsch

Daniel Betancourt

Chair

Vice Chair

Lora Smith

118 109th Annual Report | 2022

Model Validation Council
The Model Validation Council was established in 2012 by the Board of Governors to provide expert
and independent advice on its process to rigorously assess the models used in stress tests of
banking institutions. The Dodd-Frank Wall Street Reform and Consumer Protection Act required the
Federal Reserve to conduct annual stress tests of large bank holding companies and systemically
important, nonbank financial institutions supervised by the Board. The Model Validation Council
provides input on the Board’s efforts to assess the effectiveness of the models used in the stress
tests. The council is intended to improve the quality of the Federal Reserve’s model assessment
program and to strengthen the confidence in the integrity and independence of the program.

Members
Andrew Atkeson

George Pennacchi

Andra Ghent

Professor, University of
California, Los Angeles

Professor, University of Illinois,
Urbana-Champaign

Professor, University of Utah

Victoria Ivashina
Professor, Harvard
Business School

Federal Reserve System Organization 119

Federal Reserve Banks and Branches
To carry out the day-to-day operations of the Federal Reserve System, the nation has been divided
into 12 Federal Reserve Districts, each with a Reserve Bank. The majority of Reserve Banks also
have at least one Branch.

Reserve Bank and Branch Directors
As required by the Federal Reserve Act, each Federal Reserve Bank is supervised by a ninemember board with three different classes of three directors each: Class A directors, who are
nominated and elected by the member banks in that District to represent the stockholding banks;
Class B directors, who are nominated and elected by the member banks to represent the public;
and Class C directors, who are appointed by the Board of Governors to represent the public.
Class B and Class C directors are selected with due, but not exclusive, consideration to the interests of agriculture, commerce, industry, services, labor, and consumers. Each Federal Reserve
Bank Branch also has a board with either five or seven directors. A majority of the directors on
each Branch board are appointed by the Federal Reserve Bank, with the remaining directors
appointed by the Board of Governors.
For more information on Reserve Bank and Branch directors, see https://www.federalreserve.gov/
aboutthefed/directors/about.htm.
Reserve Bank and Branch directors are listed below. For each director, the class of directorship,
the director’s principal place of business, and the expiration date of the director’s current term are
shown. Also shown are maps that identify Federal Reserve Districts by their official number, city,
and letter designation. For more information on the Federal Reserve indicator letters, see
https://www.uscurrency.gov/denominations/bank-note-identifiers.

120 109th Annual Report | 2022

District 1–Boston
Covers the states of Maine, Massachusetts, New Hampshire, Rhode Island,

1—A

and Vermont; and all but Fairfield County in Connecticut.
VT

For more information on this District and to learn more about the Federal
MA

NH
RI

Boston

Reserve Bank of Boston’s operations, visit https://www.bostonfed.org. Information on economic conditions for this District can be found in the Federal
Reserve System’s Beige Book at https://www.federalreserve.gov/
monetarypolicy/beige-book-default.htm. Also find the Reserve Bank’s financial
statements for 2022 at https://www.federalreserve.gov/aboutthefed/files/

bostonfinstmt2022.pdf.
Class A

Class B

Class C

Bruce Van Saun, 2022

Lizanne Kindler, 2022

Christina Hull Paxson, 2022

Chairman and Chief Executive Officer,
Citizens Financial Group, Stamford, CT

Chief Executive Officer, Talbots,
Hingham, MA

President, Brown University,
Providence, RI

Jeanne A. Hulit, 2023

Kimberly Sherman Stamler,

Roger W. Crandall, 2023

President and Chief Executive Officer,
Maine Community Bank, Biddeford, ME

2023
President, Related Beal, Boston, MA

Sushil K. Tuli, 2024

Lauren A. Smith, 2024

Chairman, President, and Chief
Executive Officer, MassMutual
Financial Group, Springfield, MA

Chairman and Chief Executive Officer,
Leader Bank, N.A., Arlington, MA

Chief Health Equity and Strategy
Officer, CDC Foundation, Boston, MA

Corey Thomas, 2024
Chairman and Chief Executive Officer,
Rapid7, LLC, Boston, MA

Federal Reserve System Organization 121

District 2–New York
Covers the state of New York, Fairfield County in Connecticut, and 12 coun-

2—B

ties in northern New Jersey, and serves the Commonwealth of Puerto Rico

NY
CT

and the U.S. Virgin Islands.
Puerto Rico

For more information on this District and to learn more about the Federal
Reserve Bank of New York’s operations, visit https://www.newyorkfed.org/.
Information on economic conditions for this District can be found in the Fed-

Virgin Islands

New York

eral Reserve System’s Beige Book at https://www.federalreserve.gov/
monetarypolicy/beige-book-default.htm. Also find the Reserve Bank’s financial statements for 2022 at https://www.federalreserve.gov/aboutthefed/files/
newyorkfinstmt2022.pdf.
Class A

Class B

Class C

Douglas L. Kennedy, 2022

Adena T. Friedman, 2022

Denise Scott, 2022

President and Chief Executive Officer,
Peapack-Gladstone Bank,
Bedminster, NJ

President and Chief Executive Officer,
Nasdaq, New York, NY

President, Local Initiatives Support
Corporation, New York, NY

Arvind Krishna, 2023

Rosa Gil, 2023

Thomas J. Murphy, 2023

Chairman and Chief Executive Officer,
IBM, New York, NY

Founder, President, and Chief
Executive Officer, Comunilife, Inc.,
New York, NY

President and Chief Executive Officer,
Arrow Financial Corporation, Glens
Falls National Bank, Glens Falls, NY

René F. Jones, 2024
Chairman and Chief Executive Officer,
M&T Bank Corporation, Buffalo, NY

Scott Rechler, 2024
Chairman and Chief Executive Officer,
RXR, New York, NY

Vincent Alvarez, 2024
President, New York City Central Labor
Council, AFL-CIO, New York, NY

122 109th Annual Report | 2022

District 3–Philadelphia
Covers the state of Delaware; 9 counties in southern New Jersey; and 48

3—C

counties in the eastern two-thirds of Pennsylvania.
PA

For more information on this District and to learn more about the Federal
DE

Reserve Bank of Philadelphia’s operations, visit https://www.philadelphia
fed.org/. Information on economic conditions for this District can be found

Philadelphia

in the Federal Reserve System’s Beige Book at https://www.federalreserve.
gov/monetarypolicy/beige-book-default.htm. Also find the Reserve Bank’s
financial statements for 2022 at https://www.federalreserve.gov/

aboutthefed/files/philadelphiafinstmt2022.pdf.
Class A

Class B

Class C

Christopher D. Maher, 2022

John Fry, 2022

Anthony Ibarguen, 2022

President, Drexel University,
Philadelphia, PA

Chief Executive Officer, Quench USA,
Inc., King of Prussia, PA

Bret S. Perkins, 2023

Madeline Bell, 2023

Senior Vice President, External and
Government Affairs, Comcast
Corporation, Philadelphia, PA

President and Chief Executive Officer,
The Children’s Hospital of
Philadelphia–CHOP, Philadelphia, PA

Julia H. Klein, 2024

Sharmain Matlock-Turner,

Chairwoman and Chief Executive
Officer, C. H. Briggs Company,
Reading, PA

2024
President and Chief Executive Officer,
Urban Affairs Coalition,
Philadelphia, PA

Chairman and Chief Executive Officer,
OceanFirst Bank, N.A., Toms River, NJ

Randall E. Black, 2023
Chief Executive Officer and President,
Citizens Financial Services Inc. and
First Citizen’s Community Bank,
Mansfield, PA

Timothy Snyder, 2024
President and Chief Executive Officer,
Fleetwood Bank, Fleetwood, PA

Federal Reserve System Organization 123

District 4–Cleveland
Covers the state of Ohio; 56 counties in eastern Kentucky; 19 counties in
western Pennsylvania; and 6 counties in northern West Virginia.

4—D Pittsburgh
PA
OH

For more information on this District and to learn more about the Federal
Reserve Bank of Cleveland’s operations, visit https://www.cleveland

WV
Cincinnati
KY

fed.org/. Information on economic conditions for this District can be found

Cleveland

in the Federal Reserve System’s Beige Book at https://www.federal
reserve.gov/monetarypolicy/beige-book-default.htm. Also find the Reserve
Bank’s financial statements for 2022 at https://www.federalreserve.gov/
aboutthefed/files/clevelandfinstmt2022.pdf.
Class A

Doris Carson Williams, 2023

Rachid Abdallah, 2024
Chairman and Chief Executive Officer,
Jedson Engineering, Cincinnati, OH

Chief Information Officer and Executive
Vice President, KeyBank, Cleveland, OH

President and Chief Executive Officer,
African American Chamber of
Commerce of Western Pennsylvania,
Pittsburgh, PA

Dean J. Miller, 2023

Ana G. Rodriguez, 2024

Appointed by the Federal Reserve Bank

President and Chief Executive Officer,
First National Bank of Bellevue,
Bellevue, OH

Executive Vice President and Chief
People Officer, Monogram Foods,
Memphis, TN

Amy G. Brady, 2022

Eddie L. Steiner, 2024
President and Chief Executive Officer,
CSB Bancorp, Inc., Millersburg, OH

Class B
David Megenhardt, 2022
Executive Director, United Labor
Agency, Cleveland, OH

Heidi L. Gartland, 2023
Chief Government and Community
Relations Officer, University Hospitals,
Cleveland, OH

Cincinnati Branch
Appointed by the Federal Reserve Bank

Darin C. Hall, 2022

Pittsburgh Branch

Sanjay Chopra, 2022
Co-Founder and Chief Executive
Officer, Cognistx, Pittsburgh, PA

Earl Buford, 2023
President, CAEL, Indianapolis, IN

Christina A. Cassotis, 2023

President and Chief Executive Officer,
Civitas Development Group,
Cincinnati, OH

Chief Executive Officer, Allegheny
County Airport Authority, Pittsburgh, PA

Alfonso Cornejo, 2023

President and Chief Executive Officer,
MSA Safety Incorporated, Cranberry
Township, PA

President, Hispanic Chamber
Cincinnati USA, Cincinnati, OH

Nishan J. Vartanian, 2024

David C. Evans, 2023

Appointed by the Board of Governors

President and Chief Executive Officer,
TESSEC LLC, Dayton, OH

Kathryn Z. Klaber, 2022

Jacqueline Gamblin, 2024
Chief Executive Officer, JYG Innovations, Dayton, OH

Archie M. Brown, 2024

Class C
Dwight E. Smith, 2022
President and Chief Executive Officer,
Sophisticated Systems, Inc.,
Columbus, OH

President and Chief Executive Officer,
First Financial Bancorp, Cincinnati, OH
Appointed by the Board of Governors

Holly B. Wiedemann, 2022
Founder, AU Associates, Inc.,
Lexington, KY

Ashish K. Vaidya, 2023
President, Northern Kentucky
University, Highland Heights, KY

Managing Partner, The Klaber Group,
Sewickley, PA

Kathy Wilson Humphrey, 2023
President, Carlow University,
Pittsburgh, PA

Vera Krekanova, 2024
Chief Strategy and Research Officer,
Allegheny Conference on Community
Development, Pittsburgh, PA

124 109th Annual Report | 2022

District 5–Richmond

5—E

Baltimore

Covers the states of Maryland, Virginia, North Carolina, and South CaroMD

VA
WV

NC
Charlotte
SC

Richmond

lina; 49 counties constituting most of West Virginia; and the District
of Columbia.
For more information on this District and to learn more about the Federal
Reserve Bank of Richmond’s operations, visit https://www.richmond
fed.org/. Information on economic conditions for this District can be
found in the Federal Reserve System’s Beige Book at https://
www.federalreserve.gov/monetarypolicy/beige-book-default.htm. Also find

the Reserve Bank’s financial statements for 2022 at https://www.federalreserve.gov/
aboutthefed/files/richmondfinstmt2022.pdf.
Class A

Class C

Mary McDuffie, 2024

William A. Loving Jr., 2022

Jodie McLean, 2022

President and Chief Executive Officer,
Navy Federal Credit Union, Vienna, VA

President and Chief Executive Officer,
Pendleton Community Bank,
Franklin, WV

Chief Executive Officer, EDENS,
Washington, DC

Appointed by the Board of Governors

Jennifer LaClair, 2023
Chief Financial Officer, Ally Bank,
Charlotte, NC

President and Chief Executive Officer,
The Annie E. Casey Foundation,
Baltimore, MD

James H. Sills III, 2024

Eugene A. Woods, 2024

President and Chief Executive Officer,
Mechanics and Farmers Bank,
Durham, NC

President and Chief Executive Officer,
Atrium Health, Charlotte, NC

Lisa M. Hamilton, 2023

Baltimore Branch
Class B
Wayne A. I. Frederick, MD,
2022

Appointed by the Federal Reserve Bank

Cecilia A. Hodges, 2022

President, Howard University,
Washington, DC

Regional President Greater Washington and Virginia, M&T Bank, Falls
Church, VA

Robert M. Blue, 2023

Brenda Galgano, 2023

President and Chief Executive Officer,
Dominion Energy, Richmond, VA

Senior Vice President and Chief
Financial Officer, Perdue, Salisbury, MD

Nazzic Keene, 2024

Tom Geddes, 2024

Chief Executive Officer, SAIC,
Reston, VA

Partner and Portfolio Manager, Brown
Advisory, Baltimore, MD

William J. McCarthy, 2022
Executive Director, Catholic Charities
of Baltimore, Baltimore, MD

Leslie D. Hale, 2023
President and Chief Executive Officer,
RLJ Lodging Trust, Bethesda, MD

Brian McLaughlin, 2024
President, Enterprise Community
Development Inc., Silver Spring, MD

Charlotte Branch
Appointed by the Federal Reserve Bank

Dionne Nelson, 2022
President and Chief Executive Officer,
Laurel Street Residential,
Charlotte, NC

Vacancy, 2023
Samuel L. Erwin, 2024
Executive Vice President, First Horizon
Bank, Greenville, SC

Federal Reserve System Organization 125

George Dean Johnson III, 2024

R. Glenn Sherrill Jr., 2023

Bernett William Mazyck, 2024

Chief Executive Officer, Johnson
Development Associates, Inc.,
Spartanburg, SC

Chairman and Chief Executive Officer,
SteelFab Inc., Charlotte, NC

President and Chief Executive Officer,
South Carolina Association for
Community Economic Development,
Charleston, SC

Appointed by the Board of Governors

James F. Goodmon Jr., 2022
President and Chief Operating Officer,
Capitol Broadcasting Company,
Raleigh, NC

126 109th Annual Report | 2022

District 6–Atlanta
Covers the states of Alabama, Florida, and Georgia; 74

6—F
Nashville

counties in the eastern two-thirds of Tennessee; 38 par-

Birmingham
MS

ishes of southern Louisiana; and 43 counties of southern
Mississippi.

LA
New Orleans

Jacksonville

For more information on this District and to learn more

FL
Miami

Atlanta

about the Federal Reserve Bank of Atlanta’s operations,
visit https://www.frbatlanta.org/. Information on economic
conditions for this District can be found in the Federal
Reserve System’s Beige Book at https://www.federal

reserve.gov/monetarypolicy/beige-book-default.htm. Also find the Reserve Bank’s financial statements for 2022 at https://www.federalreserve.gov/aboutthefed/files/atlantafinstmt2022.pdf.
Class A

Gregory A. Haile, 2023

Christy Thomas, 2024

Robert W. Dumas, 2022

President, Broward College, Fort
Lauderdale, FL

Executive Vice President, Compliance,
Jemison Metals, Birmingham, AL

Chairman, President, and Chief
Executive Officer, AuburnBank,
Auburn, AL

Claire Lewis Arnold, 2024

Kessel D. Stelling Jr., 2023
Executive Chair, Synovus Financial
Corporation, Columbus, GA

Abel L. Iglesias, 2024
President and Chief Executive Officer,
Professional Holding Corporation and
Professional Bank, Coral Gables, FL

Class B
Nicole B. Thomas, 2022
Hospital President, Baptist Medical
Center Jacksonville, Jacksonville, FL

John W. Garratt, 2023
President and Chief Financial Officer,
Dollar General, Goodlettsville, TN

Michael Russell, 2024
Chief Executive Officer, H.J. Russell
and Company, Atlanta, GA

Class C

Chief Executive Officer, Leapfrog
Services, Inc., Atlanta, GA

Birmingham Branch
Appointed by the Federal Reserve Bank

Brian C. Hamilton, 2022

Jacksonville Branch
Appointed by the Federal Reserve Bank

Paul G. Boynton, 2022
Former Vice Chairman, Rayonier
Advanced Materials, Inc., Jacksonville, FL

President and Chief Executive Officer,
Trillion Communications Corp.,
Bessemer, AL

William O. West, 2023

Larry D. Thornton Sr., 2023

Monesia T. Brown, 2024

President and Chief Executive Officer,
Thornton Enterprises, Birmingham, AL

Director of Public Affairs and
Government Relations, Walmart, Inc.,
Tallahassee, FL

Michelle Lewis, 2024
Chief Financial Officer, AAA Cooper
Transportation, Dothan, AL

David L. Nast, 2024

Vice Chair, The Bank of Tampa,
Tampa, FL

Brian E. Wolfburg, 2024
President and Chief Executive Officer,
VyStar Credit Union, Jacksonville, FL

President and Chief Executive Officer,
Progress Bank, Huntsville, AL

Appointed by the Board of Governors

President and Chief Executive Officer,
Regency Centers Corporation,
Jacksonville, FL

Merrill H. Stewart Jr., 2022

Elizabeth A. Smith, 2022

President, The Stewart/Perry
Company, Inc., Birmingham, AL

Former Executive Chair, Bloomin’
Brands, Inc., Tampa, FL

Maye Head-Frei, 2023
Former Chairman, Ram Tool and
Supply Company, Birmingham, AL

Lisa Palmer, 2022

Edward A. Moratin, 2023
President, LIFT Orlando, Orlando, FL

Timothy P. Cost, 2024
President, Jacksonville University,
Jacksonville, FL

Federal Reserve System Organization 127

Miami Branch

Marshall E. Crawford Jr., 2023

New Orleans Branch

Appointed by the Federal Reserve Bank

President and Chief Executive Officer,
The Housing Fund, Inc., Nashville, TN

Appointed by the Federal Reserve Bank

Eduardo Arriola, 2022
Chairman and Chief Executive Officer,
Apollo Bank, Miami, FL

Daniel Lavender, 2023
Chief Executive Officer, Moorings Park
Institute, Inc., Naples, FL

N. Maria Menendez, 2023
Chief Financial Officer, GL Homes of
Florida Holding, Sunrise, FL

Ginger Martin, 2024
President and Chief Executive Officer,
American National Bank, Oakland
Park, FL
Appointed by the Board of Governors

Ana M. Menendez, 2022
Chief Financial Officer and Treasurer,
Watsco, Inc., Miami, FL

Keith T. Koenig, 2023
Chief Executive Officer, City Furniture,
Tamarac, FL

Amanda Hite, 2024
President, Smith Travel Research,
Hendersonville, TN

Leif M. Murphy, 2024
Chief Executive Officer, TeamHealth
Holdings, Inc., Knoxville, TN

William J. Bynum, 2022
Chief Executive Officer, Hope Credit
Union, Hope Enterprise Corp., and
Hope Policy Institute, Jackson, MS

William G. Yates III, 2023

Appointed by the Board of Governors

President and Chief Executive Officer,
W.G. Yates & Sons Construction
Company, Biloxi, MS

Matthew S. Bourlakas, 2022

Katherine A. Crosby, 2024

President and Chief Executive Officer,
Goodwill Industries of Middle
Tennessee, Inc., Nashville, TN

Board Chair, Fidelity Bank,
New Orleans, LA

Amanda Mathis, 2023

Chief Executive Officer, Pod Pack
International, Metairie, LA

Chief Financial Officer, Bridgestone
Americas, Inc., Nashville, TN

Thomas Zacharia, 2024
Laboratory Director/ President and
Chief Executive Officer, Oak Ridge
National Laboratory/ UT-Battelle, LLC,
Oak Ridge, TN

David T. Darragh, 2024

Appointed by the Board of Governors

G. Janelle Frost, 2022
President and Chief Executive Officer,
AMERISAFE, Inc., DeRidder, LA

Michael E. Hicks Jr., 2023

Vacancy, 2024

President and Chief Executive Officer,
Hixardt Technologies, Inc.,
Pensacola, FL

Nashville Branch

John C. Driscoll, 2024

Appointed by the Federal Reserve Bank

Director and Chief Executive Officer,
Alabama State Port Authority,
Mobile, AL

Amber W. Krupacs, 2022
Former Chief Financial Officer and
Executive Vice President, Clayton
Homes, Maryville, TN

128 109th Annual Report | 2022

District 7–Chicago
Covers the state of Iowa; 68 counties of northern Indiana; 50

7—G
MI
WI

counties of northern Illinois; 68 counties of southern Michigan;
and 46 counties of southern Wisconsin.

Detroit

IA
IL

For more information on this District and to learn more about the
IN

Federal Reserve Bank of Chicago’s operations, visit https://
www.chicagofed.org/. Information on economic conditions for

Chicago

this District can be found in the Federal Reserve System’s Beige
Book at https://www.federalreserve.gov/monetarypolicy/beigebook-default.htm. Also find the Reserve Bank’s financial state-

ments for 2022 at https://www.federalreserve.gov/aboutthefed/files/chicagofinstmt2022.pdf.
Class A

Class C

Kevin Nowlan, 2023

Susan Whitson, 2022

Helene D. Gayle, 2022

Chief Executive Officer, First Bank, and
President, First of Waverly Corporation,
Waverly, IA

President and Chief Executive Officer,
The Chicago Community Trust,
Chicago, IL

Executive Vice President and Chief
Financial Officer, BorgWarner Inc.,
Auburn Hills, MI

Michael O’Grady, 2023

Jennifer Scanlon, 2023

Chief Executive Officer, Detroit Future
City, Detroit, MI

Chairman, President, and Chief
Executive Officer, Northern Trust,
Chicago, IL

President and Chief Executive Officer,
UL Inc., Northbrook, IL

Appointed by the Board of Governors

Juan Salgado, 2024

Linda P. Hubbard, 2022

Christopher J. Murphy III, 2024

Chancellor, City Colleges of Chicago,
Chicago, IL

Chairman and Chief Executive Officer,
1st Source Bank, South Bend, IN

Detroit Branch
Class B
Linda Jojo, 2022
Executive Vice President, Technology
and Chief Digital Officer, United
Airlines, Inc., Chicago, IL

David Cyril Habiger, 2023
President and Chief Executive Officer,
J.D. Power, Troy, MI

Vacancy, 2024

Appointed by the Federal Reserve Banks

Ronald E. Hall, 2022
President and Chief Executive Officer,
Bridgewater Interiors, LLC, Detroit, MI

Sandy K. Baruah, 2023
President and Chief Executive Officer,
Detroit Regional Chamber, Detroit, MI

Anika Goss, 2024

President and Chief Operating Officer,
Carhartt, Inc., Dearborn, MI

M. Roy Wilson., 2023
President, Wayne State University,
Detroit, MI

James M. Nicholson, 2024
Co-Chairman, PVS Chemicals, Inc.,
Detroit, MI

Federal Reserve System Organization 129

District 8–St. Louis
Covers the state of Arkansas; 44 counties in southern Illinois;

8—H

24 counties in southern Indiana; 64 counties in western Kentucky;

39 counties in northern Mississippi; 71 counties in central and
eastern Missouri; the city of St. Louis; and 21 counties in western

Louisville
TN
Memphis

MO
AR

Tennessee.

Little Rock

For more information on this District and to learn more about the

St. Louis

Federal Reserve Bank of St. Louis’s operations, visit https://
www.stlouisfed.org/. Information on economic conditions for this District can be found in the Federal Reserve System’s Beige Book at

https://www.federalreserve.gov/monetarypolicy/beige-book-default.htm. Also find the Reserve
Bank’s financial statements for 2022 at https://www.federalreserve.gov/aboutthefed/files/
stlouisfinstmt2022.pdf.
Class A

James M. McKelvey Jr., 2023

Vickie D. Judy, 2023

C. Mitchell Waycaster, 2022

Founder and Chief Executive Officer,
Invisibly, Inc., St. Louis, MO

President and Chief Executive Officer,
Renasant Bank, Tupelo, MS

Lal Karsanbhai, 2024

Chief Financial Officer and Vice
President, America’s Car-Mart, Inc.,
Bentonville, AR

Elizabeth G. McCoy, 2023
Chief Executive Officer, Planters Bank,
Hopkinsville, KY

Misty Borrowman, 2024
President and Chief Executive Officer,
Bank of Hillsboro, Hillsboro, IL

Chief Executive Officer, Emerson
Electric Co., St. Louis, MO

Little Rock Branch
Appointed by the Federal Reserve Bank

Jamie Henry, 2024
Vice President Finance, Emerging
Payments, Walmart Inc.,
Bentonville, AR

Louisville Branch

Christopher B. Hegi, 2022

Appointed by the Federal Reserve Bank

Class B

Chief Executive Officer, First Financial
Bank, El Dorado, AR

Patrick J. Glotzbach, 2022

Penelope Pennington, 2022

Vacancy, 2023

Managing Partner, Edward Jones,
St. Louis, MO

R. Andrew Clyde, 2023
President and Chief Executive Officer,
Murphy USA Inc., El Dorado, AR

Michael Ugwueke, 2024
President and Chief Executive Officer,
Methodist Le Bonheur Healthcare,
Memphis, TN

Class C
Carolyn Chism Hardy, 2022
President and Chief Executive Officer,
Chism Hardy Investments, LLC,
Collierville, TN

Darrin Williams, 2023
Chief Executive Officer, Southern
Bancorp, Inc., Little Rock, AR

Jeff Lynch, 2024
President and Chief Executive Officer,
Eagle Bank and Trust, Little Rock, AR

Director, New Independent
Bancshares, Inc., Charlestown, IN

Tara England Barney, 2023
President and Chief Executive Officer,
Southwest Indiana Chamber of
Commerce, Evansville, IN

Blake B. Willoughby, 2023

Appointed by the Board of Governors

President and Chairman, First
Breckinridge Bancshares, Inc.,
Irvington, KY

Millie A. Ward, 2022

Dave W. Christopher, 2024

President, Stone Ward, Little Rock, AR

Founder and Executive Director,
AMPED Louisville, Louisville, KY

130 109th Annual Report | 2022

Appointed by the Board of Governors

Jeff Agee, 2023

Appointed by the Board of Governors

David Tatman, 2022

Chairman and Chief Executive Officer,
First Citizens National Bank,
Dyersburg, TN

Katherine Buckman Gibson,

Director of Engineering, Bendix Spicer
Foundation Brake, LLC,
Bowling Green, KY

Sadiqa N. Reynolds, 2023
President and Chief Executive Officer,
Louisville Urban League, Louisville, KY

Emerson M. Goodwin, 2024
Senior Vice President of Business
Development, ARcare d/b/a
KentuckyCare, Paducah, KY

Memphis Branch
Appointed by the Federal Reserve Bank

R. Davy Carter, 2022
Regional President, Home
BancShares, Inc., Jonesboro, AR

Henry N. Reichle Jr., 2023
President and Chief Executive Officer,
Staplcotn, Greenwood, MS

Tyrone Burroughs, 2024
President and Chief Executive Officer,
First Choice Sales and Marketing
Group Inc., Memphis, TN

2022
Chief Executive Officer, KBG
Technologies, LLC, Memphis, TN

Beverly Crossen, 2023
Owner, Farmhouse Tupelo, Tupelo, MS

Tracy D. Hall, 2024
President, Southwest Tennessee
Community College, Memphis, TN

Federal Reserve System Organization 131

District 9–Minneapolis
Covers the states of Minnesota, Montana,

9—I

North Dakota, and South Dakota; the Upper
Peninsula of Michigan; and 26 counties in

MT
Helena

northern Wisconsin.

MI
WI

For more information on this District and to
learn more about the Federal Reserve Bank

Minneapolis

of Minneapolis’s operations, visit https://
www.minneapolisfed.org/. Information on
economic conditions for this District can be found in the Federal Reserve System’s Beige Book at
https://www.federalreserve.gov/monetarypolicy/beige-book-default.htm. Also find the Reserve
Bank’s financial statements for 2022 at https://www.federalreserve.gov/aboutthefed/files/
minneapolisfinstmt2022.pdf.
Class A

Class C

William E. Coffee, 2023

Brenda K. Foster, 2022

Christopher M. Hilger, 2022

Chairman, President, and Chief
Executive Officer, First Western Bank
and Trust, Minot, ND

Chairman, President, and Chief
Executive Officer, Securian Financial,
St. Paul, MN

Chief Executive Officer and Chairman
of the Board, Stockman Financial
Corporation, Billings, MT

Gerald H. Jacobson, 2023

Srilata Zaheer, 2023

Owner and Consultant, Ace Housing
and Development, LLC, Polson, MT

President, Northwestern Bank,
Chippewa Falls, WI

Dean, Carlson School of Management,
University of Minnesota,
Minneapolis, MN

Appointed by the Board of Governors

Jeanne H. Crain, 2024
President and Chief Executive Officer,
Bremer Financial Corporation,
St. Paul, MN

Paul D. Williams, 2024
President and Chief Executive Officer,
Project for Pride in Living, Minneapolis,
MN

Class B
David R. Emery, 2022

Helena Branch

Executive Chairman, Retired, Black
Hills Corporation, Rapid City, SD

Appointed by the Federal Reserve Bank

Vacancy, 2023

President and Chief Executive Officer,
Montana Community Foundation,
Helena, MT

Sarah Walsh, 2024
Chief Operating Officer, PayneWest
Insurance, Helena, MT

Mary Rutherford, 2022

Jason Adams, 2024

Alan D. Ekblad, 2023
Senior and Managing Partner,
Strategic Labor Partnerships,
Helena, MT

Bobbi Wolstein, 2024
Chief Financial Officer, LHC, Inc.,
Kalispell, MT

132 109th Annual Report | 2022

District 10–Kansas City
Covers the states of Colorado, Kansas, Nebraska,

10—J
WY

Oklahoma, and Wyoming; 43 counties in western
Missouri; and 14 counties in northern New Mexico.

NE
Omaha

CO
Denver

For more information on this District and to learn

more about the Federal Reserve Bank of Kansas
NM

Oklahoma City
OK

Kansas City

City’s operations, visit https://www.kansas
cityfed.org/. Information on economic conditions for
this District can be found in the Federal Reserve
System’s Beige Book at https://www.federal
reserve.gov/monetarypolicy/beige-book-default.htm.

Also find the Reserve Bank’s financial statements for 2022 at https://www.federalreserve.gov/
aboutthefed/files/kansascityfinstmt2022.pdf.
Class A

Maria Griego-Raby, 2023

Navin Dimond, 2023

Gregory Hohl, 2022

President and Principal, Contract
Associates, Albuquerque, NM

Chief Executive Officer and Chairman,
Stonebridge Companies, Denver, CO

Chairman and President, Wahoo State
Bank, Wahoo, NE

Edmond Johnson, 2024

Janice J. Lucero, 2024

President and Chief Executive Officer,
Premier Manufacturing, Inc. and
eNFUSION, Frederick, CO

President and Chief Executive Officer,
Motor Vehicle Division Express,
Albuquerque, NM

Denver Branch

Oklahoma City Branch

Kyle Heckman, 2024

Appointed by the Federal Reserve Bank

Chairman, President, and Chief
Executive Officer, Flatirons Bank,
Boulder, CO

Jeffrey C. Wallace, 2022

Susan Chapman Plumb, 2022

Chief Executive Officer, Wyoming Bank
& Trust, Cheyenne, WY

Board Chair and Chief Executive
Officer, Bank of Cherokee County,
Tahlequah, OK

Patricia J. Minard, 2023
Executive Vice President and Chief
Financial Officer, Emprise Bank,
Wichita, KS

Class B
Douglas J. Stussi, 2022
Executive Adviser, Love Family of
Companies, Oklahoma City, OK

Ruben Alonso III, 2023
Chief Executive Officer, AltCap,
Kansas City, MO

Rachel Gerlach, 2023
Chief Credit Officer, Alpine Bank,
Glenwood Springs, CO

Nicole Glaros, 2024
Founder and Chief Executive Officer,
Phos, Boulder, CO

Christopher C. Turner, 2022
Chief Operating Officer and Executive
Vice President, The First National
Bank & Trust, Oklahoma City, OK

Brady Sidwell, 2023

Chris Wright, 2024

Owner and Principal, Sidwell
Strategies, LLC, Enid, OK

Vacancy, 2024

Chief Executive Officer, Liberty Oilfield
Services, Denver, CO

J. Walter Duncan IV, 2024

Class C

Appointed by the Board of Governors

Patrick A. Dujakovich, 2022

Jandel Allen-Davis, MD, 2022

President, Greater Kansas City
AFL-CIO, Kansas City, MO

Chief Executive Officer and President,
Craig Hospital, Englewood, CO

President, Duncan Oil Properties, Inc.,
Oklahoma City, OK

Federal Reserve System Organization 133

Appointed by the Board of Governors

Omaha Branch

Appointed by the Board of Governors

Dana S. Weber, 2022

Appointed by the Federal Reserve Bank

L. Javier Fernandez, 2022

Chief Executive Officer and Chairman
of the Board, Webco Industries, Inc.,
Sand Springs, OK

Annette Hamilton, 2022

President and Chief Executive Officer,
Omaha Public Power District,
Omaha, NE

Katrina Washington, 2023
Owner, Stratos Realty Group,
Oklahoma City, OK

Rhonda Hooper, 2024
President and Chief Executive Officer,
Jordan Advertising, Oklahoma City, OK

Chief Operating Officer, Ho-Chunk, Inc.,
Winnebago, NE

Dwayne W. Sieck, 2023

Carmen Tapio, 2023

Managing Principal, Farnam Street
Real Estate Capital, Omaha, NE

Owner, President, and Chief Executive
Officer, North End Teleservices, LLC,
Omaha, NE

Zac Karpf, 2024

Paul Maass, 2024

President, Platte Valley Bank,
Scottsbluff, NE

Chief Executive Officer, Scoular,
Omaha, NE

Susan L. Martin, 2024
President and Secretary-Treasurer,
Nebraska State AFL-CIO, Lincoln, NE

134 109th Annual Report | 2022

District 11–Dallas

11—K

Covers the state of Texas; 26 parishes in northern
TX

Louisiana; and 18 counties in southern New Mexico.

NM
LA

For more information on this District and to learn

El Paso
Houston

more about the Federal Reserve Bank of Dallas’s
operations, visit https://www.dallasfed.org. Informa-

San Antonio

tion on economic conditions for this District can be

Dallas

found in the Federal Reserve System’s Beige Book
at https://www.federalreserve.gov/monetarypolicy/
beige-book-default.htm. Also find the Reserve Bank’s

financial statements for 2022 at https://www.federalreserve.gov/aboutthefed/files/
dallasfinstmt2022.pdf.
Class A

Class C

Joe Quiroga, 2022

Thomas J. Falk, 2022

President, Texas National Bank,
Edinburg, TX

Retired Chairman and Chief Executive
Officer, Kimberly-Clark Corporation,
Dallas, TX

Robert A. Hulsey, 2023
President and Chief Executive Officer,
American National Bank of Texas,
Terrell, TX

Claudia Aguirre, 2023

Kelly A. Barclay, 2024

Cindy Ramos-Davidson, 2024

President and Chief Executive Officer,
Ozona Bank, Wimberly, TX

Chief Executive Officer, El Paso
Hispanic Chamber of Commerce,
El Paso, TX

President and Chief Executive Officer,
BakerRipley, Houston, TX

Class B
Cynthia Taylor, 2022
President and Chief Executive Officer,
Oil States International Inc.,
Houston, TX

Gerald B. Smith, 2023
Chairman and Chief Executive Officer,
Smith, Graham & Company Investment
Advisors, L.P., Houston, TX

Renard U. Johnson, 2024
President and Chief Executive Officer,
Management & Engineering
Technologies International, Inc.,
El Paso, TX

Appointed by the Board of Governors

Julio Chiu, 2022
Founder and Chief Executive Officer,
Seisa Group, El Paso, TX

Sally A. Hurt-Deitch, 2023
Senior Vice President of Operations,
Ascension, El Paso, TX

Tracy J. Yellen, 2024
Chief Executive Officer, Paso del Norte
Community Foundation and Paso Del
Norte Health Foundation, El Paso, TX

Houston Branch

El Paso Branch

Appointed by the Federal Reserve Bank

Gary R. Petersen, 2022

Von C. Washington Sr., 2022
President, IDA Technology, El Paso, TX

Managing Partner and Founder, EnCap
Investments L.P., Houston, TX

Jack Harper, 2023

Gina Luna, 2023

Permian President, ConocoPhillips,
Midland, TX

Chief Executive Officer, Luna
Strategies, LLC, Houston, TX

Jill Gutierrez, 2023

Bhavesh V. Patel, 2023

Director, Bank 34, Alamogordo, NM

William Serrata, 2024
President, El Paso Community College,
El Paso, TX

Chief Executive Officer, LyondellBasell
Industries, Houston, TX

Federal Reserve System Organization 135

Peter Rodriguez, 2024

San Antonio Branch

Appointed by the Board of Governors

Dean and Professor of Strategic
Management, Rice University,
Houston, TX

Appointed by the Federal Reserve Bank

Denise M. Trauth, 2022

Charles E. Amato, 2022

President, Texas State University, San
Marcos, TX

Appointed by the Board of Governors

Chairman and Co-Founder, Southwest
Business Corp., San Antonio, TX

Veronica Muzquiz Edwards,

Darryl L. Wilson, 2022
President and Founder, The Wilson
Collective, Houston, TX

Ruth J. Simmons, 2023
President, Prairie View A&M University,
Prairie View, TX

Cynthia N. Colbert, 2024
President and Chief Executive Officer,
Catholic Charities Archdiocese of
Galveston-Houston, Houston, TX

Bradley Barron, 2023
President and Chief Executive Officer,
NuStar Energy, San Antonio, TX

Tyson Tuttle, 2023
President and Chief Executive Officer,
Silicon Labs, Austin, TX

Gabriel Guerra, 2024
President and Chief Executive Officer,
Kleberg Bank, Kingsville, TX

2023
Chief Executive Officer, InGenesis,
Inc., San Antonio, TX

Monica Salinas, 2024
Chief Executive Officer Operations,
Cromex Forwarding Inc., Laredo, TX

136 109th Annual Report | 2022

District 12–San Francisco
Covers the states of Alaska, Arizona, California, Hawaii,

12—L

Idaho, Nevada, Oregon, Utah, and Washington, and serves
American Samoa, Guam, and the Commonwealth of the
WA

Alaska

Northern Mariana Islands.

Seattle
Portland
OR

For more information on this District and to learn more
about the Federal Reserve Bank of San Francisco’s opera-

tions, visit http://www.frbsf.org/. Information on economic

NV
Salt Lake
City
UT

Guam

Reserve System’s Beige Book at https://www.federal

Los Angeles
Hawaii

conditions for this District can be found in the Federal
reserve.gov/monetarypolicy/beige-book-default.htm. Also

San Francisco

find the Reserve Bank’s financial statements for 2022 at
https://www.federalreserve.gov/aboutthefed/files/
sanfranciscofinstmt2022.pdf.

Class A

Class C

Jimmy Ayala, 2024

Simone Lagomarsino, 2022

Mario Cordero, 2022

Division President, Tri Pointe Homes
Incorporated, San Diego, CA

President and Chief Executive Officer,
Luther Burbank Savings & Luther
Burbank Corporation, Gardena, CA

Executive Director, Port of Long Beach,
Long Beach, CA

Maritza Diaz, 2024

Tamara L. Lundgren, 2023

S. Randolph Compton, 2023

Chief Executive Officer, iTjuana, San
Marcos, CA

Co-Chair of the Board, Pioneer Trust
Bank, N.A., Salem, OR

Chairman, President, and Chief
Executive Officer, Schnitzer Steel
Industries, Inc., Portland, OR

Appointed by the Board of Governors

Greg Becker, 2024

David P. White, 2024

President and Chief Executive Officer,
SVB Financial Group, Chief Executive
Officer, Silicon Valley Bank, Santa
Clara, CA

Immediate Past Chief Executive
Officer, Chief Negotiator and Strategic
Advisor, SAG-AFTRA, Los Angeles, CA,
and Venture Partner, Ulu Ventures,
Palo Alto, CA

Director of Aviation, Harry Reid
International Airport, Las Vegas, NV

Class B
Sanford L. Michelman, 2022

Los Angeles Branch

Rosemary Vassiliadis, 2022

Carl J.P. Chang, 2023
Chief Executive Officer, Kairos
Investment Management Company,
Chairman of the Board, Pieology
Pizzeria, Rancho Santa Margarita, CA

Jack Sinclair, 2024

Chairman, Michelman & Robinson, LLP,
Los Angeles, CA

Appointed by the Federal Reserve Bank

Wayne Bradshaw, 2022

Chief Executive Officer, Sprouts
Farmers Market, Phoenix, AZ

Karen Lee, 2023

Chairman, Broadway Financial
Corporation, Los Angeles, CA

Portland Branch

Theresa Benelli, 2023

Appointed by the Federal Reserve Bank

Executive Director, LISC Phoenix,
Phoenix, AZ

Maria Pope, 2022

Chief Executive Officer, Plymouth
Housing, Seattle, WA

Arthur F. Oppenheimer, 2024
Chairman and Chief Executive Officer,
Oppenheimer Companies, Inc.,
President, Oppenheimer Development
Corporation, Boise, ID

President and Chief Executive Officer,
Portland General Electric Company,
Portland, OR

Federal Reserve System Organization 137

Cheryl R. Nester Wolfe, 2023

Jas Krdzalic, 2023

Carol Gore, 2023

President and Chief Executive Officer,
Salem Health Hospital and Clinics,
Salem, OR

Executive Chairman, Bodybuilding.com
and Vitalize LLC, Boise, ID

President and Chief Executive Officer,
Cook Inlet Housing Authority,
Anchorage, AK

Vacancy, 2023

President and Chief Executive Officer,
Central Bank, Provo, UT

Stacey M.L. Dodson, 2024

Mark Packard, 2023

Laura Lee Stewart, 2023
President and Chief Executive Officer,
Sound Community Bank and Sound
Financial Bancorporation, Seattle, WA

Market President, Portland and
Southwest Washington, U.S. Bank,
Portland, OR

Lisa Ann Grow, 2024

Appointed by the Board of Governors

Anne C. Kubisch, 2022

Russell A. Childs, 2022

President and Chief Executive Officer,
The Ford Family Foundation, Roseburg,
OR

Chief Executive Officer and President,
SkyWest, Inc., St. George, UT

Graciela Gomez-Cowger, 2023
Chief Executive Officer, Schwabe,
Williamson & Wyatt, Portland, OR

Executive Vice President and Chief
Operations Officer, Albertsons
Companies, Boise, ID

Gale Castillo, 2024

O. Randall Woodbury, 2024

Chief Executive Officer, Northwest
Seaport Alliance, Tacoma, WA

President, Cascade Centers, Inc.,
Portland, OR

President and Chief Executive Officer,
Woodbury Corporation,
Salt Lake City, UT

Pallavi Mehta Wahi, 2024

President and Chief Executive Officer,
IdaCorp & Idaho Power, Boise, ID

Susan D. Morris, 2023

Salt Lake City Branch
Appointed by the Federal Reserve Bank

Deneece Huftalin, 2022
President, Salt Lake Community
College, Tayorsville, UT

Seattle Branch
Appointed by the Federal Reserve Bank

Robert C. Donegan, 2022
President, Ivar’s Inc., Seattle, WA

Michael S. Senske, 2024
President and Chief Executive Officer,
Pearson Packaging Systems,
Spokane, WA
Appointed by the Board of Governors

Sheila Edwards Lange, 2022
Chancellor, University of Washington,
Tacoma, WA

John Wolfe, 2023

Seattle Managing Partner and
Co-United States Managing Partner,
K&L Gates LLP, Seattle, WA

138 109th Annual Report | 2022

Reserve Bank and Branch Leadership
Each year, the Board of Governors designates one Class C director to serve as chair, and one
Class C director to serve as deputy chair, of each Reserve Bank board. Reserve Banks also have a
president and first vice president who are appointed by the Bank’s Class C, and certain Class B,
directors, subject to approval by the Board of Governors. Each Reserve Bank selects a chair for
every Branch in its District from among the directors on the Branch board who were appointed by
the Board of Governors. For each Branch, an officer from its Reserve Bank is also charged with the
oversight of Branch operations.

Boston
Christina Hull Paxson, Chair
Corey Thomas, Deputy Chair

Susan M. Collins, President and

Kenneth C. Montgomery, First

Chief Executive Officer

Vice President and Chief
Operating Officer

John C. Williams, President and

Helen Mucciolo, First Vice

Chief Executive Officer

President and Chief Operating Officer

New York
Denise Scott, Chair
Rosa Gil, Deputy Chair

Additional office at East Rutherford, NJ

Philadelphia
Madeline Bell, Chair

Patrick T. Harker, President and

James D. Narron, First Vice

Chief Executive Officer

President and Chief Operating Officer

Dwight E. Smith, Chair

Cincinnati

Pittsburgh

Doris Carson Williams,

Rachid Abdallah, Chair

Vera Krekanova, Chair

Rick Kaglic, Vice President

Mekael Teshome, Vice President

and Senior Regional Officer

Anthony Ibarguen, Deputy Chair

Cleveland

Deputy Chair

Loretta J. Mester, President and
Chief Executive Officer

Mark S. Meder, First Vice
President and Chief Operating Officer

Federal Reserve System Organization 139

Richmond
Eugene A. Woods, Chair

Baltimore

Charlotte

Jodie McLean, Deputy Chair

William J. McCarthy, Chair

R. Glenn Sherrill Jr, Chair

Thomas I. Barkin, President and

Andy Bauer, Vice President and

Matthew A. Martin, Vice

Chief Executive Officer

Baltimore Regional Executive

President and Charlotte Regional
Executive

Anoop Mishra, Vice President and

Nashville

Becky Bareford, First Vice
President and Chief Operating Officer

Atlanta
Elizabeth A. Smith, Chair
Claire Lewis Arnold,
Deputy Chair

Raphael W. Bostic, President
and Chief Executive Officer

André Anderson, First Vice
President and Chief Operating Officer

Birmingham
Christy Thomas, Chair

Regional Executive

Jacksonville

Thomas Zacharia, Chair
Laurel Graefe, Vice President and

Edward A. Moratin, Chair

Regional Executive

Christopher L. Oakley, Vice

New Orleans

President and Regional Executive

Miami
Ana M. Menendez, Chair

G. Janelle Frost, Chair
Adrienne C. Slack, Vice President
and Regional Executive

Shari Bower, Vice President and
Regional Executive

Chicago
Helene D. Gayle, MD, Chair
Jennifer Scanlon, Deputy Chair

Ellen Bromagen, First Vice
President and Chief Operating Officer
Additional office at Des Moines, IA

Detroit
Linda P. Hubbard, Chair

Charles L. Evans, President and

Rick Mattoon, Vice President and

Chief Executive Officer

Regional Executive

St. Louis
James M. McKelvey Jr., Chair

Little Rock

Carolyn Chism Hardy,

Millie A. Ward, Chair

Deputy Chair

James B. Bullard, President and
Chief Executive Officer

Kathy O. Paese, First Vice
President and Chief Operating Officer

Matuschka Lindo Briggs,

Seema Sheth, Senior Vice
President and Regional Executive

Memphis

Senior Vice President and Regional
Executive

Katherine Buckman Gibson,

Louisville

Douglas G. Scarboro, Senior

Emerson M. Goodwin, Chair

Chair

Vice President and Regional Executive

140 109th Annual Report | 2022

Minneapolis
Srilata Zaheer, Chair
Chris Hilger, Deputy Chair

Neel Kashkari, President and
Chief Executive Officer

Ron J. Feldman, First Vice

Helena
Bobbi Wolstein, Chair

President

Kansas City
Edmond Johnson, Chair

Denver

Patrick A. Dujakovich,

Navin Dimond, Chair

Deputy Chair

Esther L. George, President

Nicholas Sly, Assistant Vice

President and Chief Operating Officer

President and Branch Executive

Omaha

President and Branch Executive

L. Javier Fernandez, Chair

Oklahoma City

Nathan Kauffman, Senior Vice

and Chief Executive Officer

Kelly J. Dubbert, First Vice

Chad R. Wilkerson, Senior Vice

Katrina Washington, Chair

President and Branch Executive

Dallas
Thomas J. Falk, Chair

El Paso

Claudia Aguirre, Deputy Chair

Julio Chiu, Chair

Lorie K. Logan, President and

Roberto A. Coronado, Senior

Chief Executive Officer

Vice President in Charge

Denise M. Trauth, Chair

Houston

Roberto A. Coronado, Senior

Robert L. Triplett, III, First Vice
President and Chief Operating Officer

Darryl L. Wilson, Chair

Daron D. Peschel, Senior Vice
President in Charge

San Antonio

Vice President in Charge

San Francisco
Tamara L. Lundgren, Chair

Los Angeles

Salt Lake City

David P. White, Deputy Chair

Carl J.P. Chang, Chair

O. Randall Woodbury, Chair

Mary C. Daly, President and Chief

Qiana Charles, Vice President and

Becky B. Potts, Vice President

Executive Officer

Regional Executive

and Regional Executive

Portland

Seattle

Anne C. Kubisch, Chair

Sheila Edwards Lange, Chair

Ian Galloway, Vice President and

Darlene Wilczynski, Vice

Regional Executive

President and Regional Executive

Sarah Devany, First Vice President
and Chief Operating Officer
Additional office at Phoenix, AZ

Federal Reserve System Organization 141

Leadership Conferences
Conference of Chairs
The chairs of the Federal Reserve Banks are organized into the Conference of Chairs, which meets
to consider matters of common interest and to consult with and advise the Board of Governors.
Such meetings, also attended by the deputy chairs, were held in Washington, D.C., on May 17 and
18, 2022, and November 9 and 10, 2022. The conference’s executive committee members for
2022 are listed below.16
Conference of Chairs Executive Committee—2022
Elizabeth A. Smith, Chair,

Eugene A. Woods, Vice Chair,

Helene D. Gayle, MD, Member,

Federal Reserve Bank of Atlanta

Federal Reserve Bank of Richmond

Federal Reserve Bank of Chicago

Conference of Presidents
The presidents of the Federal Reserve Banks are organized into the Conference of Presidents,
which meets periodically to identify, define, and deliberate issues of strategic significance to the
Federal Reserve System; to consider matters of common interest; and to consult with and advise
the Board of Governors. The chief executive officer of each Reserve Bank was originally labeled
governor and did not receive the title of president until the passage of the Banking Act of 1935.
Consequently, when the Conference was first established in 1914 it was known as the Conference
of Governors. Conference officers for 2022 are listed below.
Conference of Presidents—2022
James B. Bullard, Chair,

Douglas Scarboro, Secretary,

Heidy Medina, Assistant

Federal Reserve Bank of St. Louis

Secretary, Federal Reserve Bank
of New York

John C. Williams, Vice Chair,
Federal Reserve Bank of New York

On November 10, 2022, the Conference of Chairs elected Tamara Lundgren, chair of the Federal Reserve Bank of San
Francisco, as chair of the conference’s executive committee for 2023. The conference also elected Corey Thomas,
deputy chair of the Federal Reserve Bank of Boston, as vice chair, and Patrick Dujakovich, deputy chair of the Federal
Reserve Bank of Kansas City, as the executive committee’s third member.

142 109th Annual Report | 2022

Conference of First Vice Presidents
The Conference of First Vice Presidents of the Federal Reserve Banks was organized in 1969 to
meet periodically for the consideration of operations and other matters. Conference officers for
2022 are listed below.17
Conference of First Vice Presidents—2022
James Narron, Chair,

Josh Silverstein, Secretary,

Jamica Quillin, Assistant

Federal Reserve Bank of Philadelphia

Secretary, Federal Reserve Bank of
Minneapolis

Ron Feldman, Vice Chair,
Federal Reserve Bank of Minneapolis

On November 16, 2022, the conference elected Ron Feldman, Federal Reserve Bank of Minneapolis, as chair for 2023
and Becky Bareford, Federal Reserve Bank of Richmond, as vice chair. The conference also elected Jamica Quillin, Federal Reserve Bank of Minneapolis, as secretary and Nina Mantilla, Federal Reserve Bank of Richmond, as assistant secretary.

143

Minutes of Federal Open Market
Committee Meetings

The policy actions of the Federal Open Market Committee, recorded in the minutes of its meetings, are available in the Annual Report of the Board of Governors pursuant to the requirements of
section 10 of the Federal Reserve Act. That section provides that the Board shall keep a complete
record of the actions taken by the Board and by the Federal Open Market Committee on all questions of policy relating to open market operations, that it shall record therein the votes taken in
connection with the determination of open market policies and the reasons underlying each policy
action, and that it shall include in its annual report to Congress a full account of such actions.
Links to the minutes for each of the eight regularly scheduled meetings held in 2022 are in the
list below.

Meeting Minutes
• Meeting held on January 25–26, 2022
https://www.federalreserve.gov/monetarypolicy/files/fomcminutes20220126.pdf
• Meeting held on March 15–16, 2022
https://www.federalreserve.gov/monetarypolicy/files/fomcminutes20220316.pdf
• Meeting held on May 3–4, 2022
https://www.federalreserve.gov/monetarypolicy/files/fomcminutes20220504.pdf
• Meeting held on June 14–15, 2022
https://www.federalreserve.gov/monetarypolicy/files/fomcminutes20220615.pdf
• Meeting held on July 26–27, 2022
https://www.federalreserve.gov/monetarypolicy/files/fomcminutes20220727.pdf
• Meeting held on September 20–21, 2022
https://www.federalreserve.gov/monetarypolicy/files/fomcminutes20220921.pdf
• Meeting held on November 1–2, 2022
https://www.federalreserve.gov/monetarypolicy/files/fomcminutes20221102.pdf
• Meeting held on December 13–14, 2022
https://www.federalreserve.gov/monetarypolicy/files/fomcminutes20221214.pdf
The minutes of the meetings contain the votes on the policy decisions made at those meetings,
as well as a summary of the information and discussions that led to the decisions. The descrip-

144 109th Annual Report | 2022

tions of economic and financial conditions in the minutes are based solely on the information that
was available to the Committee at the time of the meetings.
Members of the Committee voting for a particular action may differ among themselves as to the
reasons for their votes; in such cases, the range of their views is noted in the minutes. When
members dissent from a decision, they are identified in the minutes and a summary of the reasons for their dissent is provided.
Policy directives of the Federal Open Market Committee are issued to the Federal Reserve Bank of
New York as the Bank selected by the Committee to execute transactions for the System Open
Market Account. Adoption of the policy directives during the year are reported in the minutes for
the individual meetings.1
For more information about the Federal Open Market Committee’s meetings, statements, and minutes, visit the Board’s website at https://www.federalreserve.gov/monetarypolicy/
fomccalendars.htm.

The Federal Open Market Committee’s standard rules and authorizations in effect as of January 1, 2022, are available at
https://www.federalreserve.gov/monetarypolicy/files/FOMC_RulesAuthPamphlet_202101.pdf. The rules and authorizations put into effect subsequently in 2022 are available at https://www.federalreserve.gov/monetarypolicy/files/
FOMC_RulesAuthPamphlet_202202.pdf.

145

Federal Reserve System Audits

The Board of Governors, the Federal Reserve Banks, and the Federal Reserve System as a whole
are all subject to several levels of audit and review.
The Board’s financial statements and internal controls over financial reporting are audited annually
by an independent outside auditor retained by the Board’s Office of Inspector General (OIG). The
outside auditor also tests the Board’s compliance with certain provisions of laws, regulations, and
contracts affecting those statements.
The Reserve Banks’ financial statements are audited annually by an independent outside auditor
retained by the Board of Governors. In addition, the Reserve Banks are subject to annual examination by the Board. As discussed in section 5, “Payment System and Reserve Bank Oversight,” the
Board’s examination includes a wide range of ongoing oversight activities conducted on site and
off site by staff of the Board’s Division of Reserve Bank Operations and Payment Systems.
The audited annual financial statements of the Board of Governors, the Reserve Banks, and the
Federal Reserve System as a whole are available on the Board’s website at https://
www.federalreserve.gov/aboutthefed/audited-annual-financial-statements.htm.
In addition, the OIG conducts audits, evaluations, investigations, and other reviews relating to the
Board’s programs and operations as well as to Board functions delegated to the Reserve Banks.
Certain aspects of Federal Reserve operations are also subject to review by the Government
Accountability Office.

Office of Inspector General Activities
The OIG for the Federal Reserve Board, which is also the OIG for the Consumer Financial Protection Bureau (CFPB), operates in accordance with the Inspector General Act of 1978, as amended.
The OIG plans and conducts audits, inspections, evaluations, investigations, and other reviews
relating to Board and CFPB programs and operations, including functions that the Board has delegated to the Federal Reserve Banks. It also retains an independent public accounting firm to
annually audit the Board’s and the Federal Financial Institutions Examination Council’s financial
statements. These activities promote economy and efficiency; enhance policies and procedures;
and prevent and detect waste, fraud, and abuse. In addition, the OIG keeps the Congress, the
Board of Governors, and the CFPB director fully and currently informed about serious abuses and
deficiencies.

146 109th Annual Report | 2022

The OIG has focused significant resources on oversight of the Board’s pandemic response efforts,
including the Board’s emergency lending programs and facilities. The OIG has initiated multiple
audits and evaluations, with other work planned, in key risk areas and opened investigations of
alleged fraud related to these programs.
During 2022, the OIG issued 18 reports (table C.1). Because of the sensitive nature of some of
the material, 2 of the 18 reports, both of which were issued to the Board, are nonpublic, as indicated. In addition, the OIG issued to the Board and to the CFPB eight memorandums on information technology issues. Because of the sensitive nature of some of the material, these information
technology memorandums are nonpublic. The OIG also conducted follow-up reviews to evaluate
actions taken on recommendations for corrective action. Regarding the OIG’s investigative work
related to the Board and the CFPB, 78 investigations were opened and 57 investigations were
closed during the year. OIG investigative work resulted in 36 arrests, 7 criminal complaints,
41 criminal informations, 20 indictments, 49 convictions, and 3 prohibitions from the banking

Table C.1. OIG reports issued in 2022
Report title

Month issued

The Board Can Enhance Its Personnel Security Program

January

The Board’s Contract Modification Process Related to Renovation Projects Is Generally Effective

February

Federal Financial Institutions Examination Council Financial Statements as of and for the Years Ended
December 31, 2021 and 2020, and Independent Auditors’ Reports

February

The Board Has Effective Processes to Collect, Aggregate, Validate, and Report CARES Act Lending
Program Data

February

Board of Governors of the Federal Reserve System Financial Statements as of and for the Years Ended
December 31, 2021 and 2020, and Independent Auditors’ Reports

March

The Board Can Strengthen Inventory and Cybersecurity Life Cycle Processes for Cloud Systems

March

Independent Accountants’ Report on the Bureau’s Fiscal Year 2021 Compliance With the Payment Integrity
Information Act of 2019

April

Testing Results for the Board’s Software and License Asset Management Processes (nonpublic report)

June

Security Control Review of the Board’s Secure Document System (nonpublic report)

June

Fiscal Years 2020 and 2021 Risk Assessment of the Bureau’s Purchase Card Program

August

The Board Implemented Safety Measures in a Manner Consistent With Its Return-to-Office Plan

September

The CFPB Implemented Safety Measures in Accordance With Its Reentry Plan

September

The CFPB Is Generally Prepared to Implement the OPEN Government Data Act and Can Take Additional Steps
to Further Align With Related Requirements

September

2022 Audit of the Board’s Information Security Program

September

2022 Audit of the CFPB’s Information Security Program

September

Observations on Cybersecurity Risk Management Processes for Vendors Supporting the Main Street Lending
Program and the Secondary Market Corporate Credit Facility

November

The Board Can Enhance Certain Governance Processes Related to Reviewing and Approving Supervisory
Proposals

December

The Board Can Enhance the Effectiveness of Certain Aspects of Its Model Risk Management Processes for
the SR/HC-SABR and BETR Models

December

Federal Reserve System Audits 147

industry, as well as $37,012,952 in criminal fines, restitution, and special assessments. The OIG
also issued two semiannual reports to Congress. The OIG performed 13 reviews of legislation and
regulations related to the operations of the Board, the CFPB, or the OIG.
For more information and to view the OIG’s publications, visit the OIG’s website at https://
oig.federalreserve.gov. Specific details about the OIG’s body of work also may be found in the
OIG’s Work Plan and semiannual reports to Congress.

Government Accountability Office Reviews
The Federal Banking Agency Audit Act (Pub. L. No. 95–320) authorizes the Government Accountability Office (GAO) to audit certain aspects of Federal Reserve System operations. The Dodd-Frank
Wall Street Reform and Consumer Protection Act of 2010 and the Coronavirus Aid, Relief, and Economic Security Act of 2020 direct the GAO to conduct additional audits with respect to these
operations. In 2022, the GAO completed 12 projects that involved the Federal Reserve (table C.2).
Ten projects were ongoing as of December 31, 2022 (table C.3).
For more information and to view GAO reports, visit the GAO’s website at https://www.gao.gov.
Table C.2. GAO reports issued in 2022
Report title

Report number

Month publicly released

Privacy: Federal Financial Regulators Should Take Additional Actions to Enhance Their
Protection of Personal Information

GAO-22-104551

January

Housing Finance System: Future Reforms Should Consider Past Plans and
Vulnerabilities Highlighted by Pandemic

GAO-22-104284

January

COVID-19: Significant Improvements Are Needed for Overseeing Relief Funds and
Leading Responses to Public Health Emergencies

GAO-22-105291

January

Trafficking: Use of Online Marketplaces and Virtual Currencies in Drug and Human
Trafficking

GAO-22-105101

February

Banking Services: Regulators Have Taken Actions to Increase Access, but
Measurement of Actions’ Effectiveness Could Be Improved

GAO-22-104468

March

Defined Contribution Plans: 403(b) Investment Options, Fees, and Other
Characteristics Varied

GAO-22-104439

April

Native American Veterans: Improvements to VA Management Could Help Increase
Mortgage Loan Program Participation

GAO-22-104627

April

COVID-19: Current and Future Federal Preparedness Requires Fixes to Improve Health
Data and Address Improper Payments

GAO-22-105397

April

Bank Supervision: Lessons Learned from Remote Supervision during Pandemic Could
Inform Future Disruptions

GAO-22-104659

September

Working Dogs: Federal Agencies Need to Better Address Health and Welfare

GAO-23-104489

October

Financial Audit: Bureau of the Fiscal Service’s FY 2022 and FY 2021 Schedules of
Federal Debt

GAO-23-105586

November

Federal Reserve Lending Programs: Risks Remain Low in Related Credit Markets, and
Main Street Loans Have Generally Performed Well

GAO-23-105629

December

148 109th Annual Report | 2022

Table C.3. Projects active at year-end 2022
Subject of project

Month initiated

Status

HMDA loan volume thresholds

October 2020

Open

Consumer credit card debt

June 2021

Open

Blockchain in financial services

August 2021

Open

Financial technology, equity, and inclusion

January 2022

Closed 3/8/2023

Modernizing the financial regulatory structure

March 2022

Open

Alternative work arrangements in the U.S. labor market

March 2022

Open

Financing of domestic violent extremists

April 2022

Open

Technological expertise of regulators’ staff

August 2022

Open

Technology needs of community development financial institutions and minority
depository institutions

October 2022

Open

Federal Reserve stress tests and capital requirements

October 2022

Open

149

Federal Reserve System Budgets

The Federal Reserve Board of Governors and the Federal Reserve Banks prepare annual budgets
as part of their efforts to ensure appropriate stewardship and accountability.1 This section presents information on the 2022 budget performance of the Board and Reserve Banks and on their
2023 budgets, budgeting processes, and trends in expenses and employment. This section also
presents information on the costs of new currency.

System Budgets Overview
Tables D.1 and D.2 summarize the Federal Reserve Board of Governors’ and Federal Reserve
Banks’ 2022 budgeted, 2022 actual, and 2023 budgeted operating expenses and employment.2

2022 Budget Performance
In carrying out its responsibilities in 2022, the Federal Reserve System incurred $5,970.4 million
in net expenses. Total System operating expenses of $7,283.5 million were offset by
$1,313.1 million in revenue from priced services, claims for reimbursement, and other income.
Total 2022 System operating expenses were $218.3 million, or 3.5 percent, less than the amount
budgeted for 2022.

2023 Operating Expense Budget
Budgeted 2023 System operating expenses of $6,292.7 million, net of revenue and reimbursements, are $322.3 million, or 5.4 percent, higher than 2022 actual expenses. The Reserve Bank
budgets comprise almost three-quarters of the System budget (figure D.1). Budgeted 2023 revenue from priced services is 6.2 percent higher than 2022 actual revenue, largely due to a shift
from reimbursements to revenue as a result of the Treasury’s decision to offer the transfer and
settlement of marketable Treasury bills, notes, and bonds through the Fedwire Securities Service.
This change will enable Reserve Banks to collect fees from customers and eliminate the need for
1

Before 2013, information about the budgeted expenses of the Board and Reserve Banks was presented in a separate
report titled Annual Report: Budget Review. The report is available at https://www.federalreserve.gov/publications/
budget-review/default.htm.
Each budget covers one calendar year.
Substantially all employees of the Board and Reserve Banks participate in the Retirement Plan for Employees of the
Federal Reserve System (System Plan). Reserve Bank employees at certain compensation levels participate in the Benefit Equalization Plan, and certain Reserve Bank officers participate in the Supplemental Retirement Plan for Select Officers of the Reserve Banks. The operating expenses of the Reserve Banks presented in this section do not include
expenses related to the retirement plans; however, the 2022 claims for reimbursement include the allocated portion of
the pension. Additional information about these expenses can be found in Appendix G, “Statistical Tables.”
Board employees also participate in the Benefit Equalization Plan, and Board officers participate in the Pension
Enhancement Plan for Officers of the Board of Governors of the Federal Reserve System (PEP). The operating expenses
of the Board presented in this section include expenses related to Board participants in the Benefit Equalization Plan
and PEP but do not include expenses related to the System Plan.

150 109th Annual Report | 2022

Table D.1. Total operating expenses of the Federal Reserve System, net of receipts and claims for
reimbursement, 2022–23
Millions of dollars, except as noted

2022
budget

Item

Board

2022
actual

Variance
2022 actual to
2022 budget
Amount

Percent

2023
budget

Variance
2023 budget to
2022 actual
Amount

Percent

965.9

912.9

–53.0

–5.5

960.8

47.8

5.2

36.0

37.6

1.7

4.6

37.9

0.3

0.7

Reserve Banks

5,434.6

5,353.0

–81.6

–1.5

5,646.2

293.2

5.5

Currency3

1,060.0

979.9

–80.1

–7.6

931.4

–48.5

–5.0

7,496.5

7,283.5

–213.0

–2.8

7,576.3

292.8

4.0

477.2

466.8

–10.4

–2.2

495.7

28.9

6.2

829.7

845.9

16.2

2.0

787.9

–58.0

–6.9

1.0

0.4

–0.6

–61.3

0.0

–0.4

–100.0

1,307.9

1,313.1

5.2

0.4

1,283.6

–29.1

–2.2

6,188.6

5,970.4

–218.3

–3.5

6,292.7

322.3

5.4

Office of Inspector General1
2

Total System operating expenses4
Revenue from priced services
Claims for reimbursement

Other income6
Revenue and claims for
reimbursement7
Total System operating expenses,
net of revenue and claims for
reimbursement

Note: Here and in subsequent tables, components may not sum to totals and may not yield percentages shown because of rounding.
1
Reflects the total operating budget net of expected earned income from the Consumer Financial Protection Bureau (CFPB). For 2022, the
Office of Inspector General (OIG) conducted less work related to the CFPB than planned, which drove the variance.
2
Excludes Reserve Bank assessments by the Board of Governors for costs related to currency and the operations of the Board of Governors,
OIG, and CFPB.
3
In the previous report, single-cycle and multicycle project budgets were combined. However, the 2022 and 2023 currency budgets only
include the single-cycle operating costs. The Bureau of Engraving and Printing’s multicycle project budgets are tracked separately.
4
Includes total operating expenses of the Federal Reserve Information Technology support function and the System’s Office of Employee Benefits, the majority of which are in the Reserve Banks.
5
Reimbursable claims include the expenses of fiscal agency. In 2022 actual, the fiscal agency allocated portion of the pension is also
included but is not included for the budget. The fiscal agency budgeted pension expense is $81.0 million in 2022 and $79.8 million
in 2023.
6
In 2022 and prior years, other income included fees that depository institutions pay for the settlement component of the Fedwire Securities
Service transactions for U.S. Department of the Treasury securities transfers. In 2023, these fees will no longer be collected as a result of
the Treasury's decision to offer the transfer and settlement of marketable Treasury bills, notes, and bonds through the Fedwire Securities
Service, and will be reported as revenue going forward.
7
Excludes annual assessments for the supervision of large financial companies pursuant to Regulation TT, which are not recognized as revenue or used to fund Board expenses. (See section 4, “Supervision and Regulation,” for more information.)

remittance to and reimbursement from the Treasury. This change is effective January 2023 and is
reflected in lower reimbursable claims and higher revenue in the 2023 budget.

Trends in Expenses and Employment
From the actual 2013 amount to the budgeted 2023 amount, the total operating expenses of the
Federal Reserve System have increased an average of 4.6 percent annually (figure D.2), which is
slightly lower than the 10-year growth rate between 2012 and 2022. The total rate of growth in
Federal Reserve System expenses reflects investments in technology initiatives related to new
and ongoing application development, payment infrastructure modernization efforts, the next-

Federal Reserve System Budgets 151

Table D.2. Employment in the Federal Reserve System, 2022–23

Item

Board
Office of Inspector General
Reserve Banks1
Currency2
Total System employment

2022
budget

2022
actual

3,083

2,988

Variance
2022 actual to
2022 budget
Amount

Percent

–95

–3.1

Variance
2023 budget to
2022 actual

2023
budget

Amount

Percent

2.2

3,054

133

0.6

136

1.8

21,212

20,831

–381

–1.8

20,763

–68

–0.3

–2

–10.4

21.3

24,448

23,970

–478

–2.0

23,974

0.0

Note: For 2022, employment numbers presented include average number of personnel (ANP) for the Board and headcount for the Reserve
Banks. ANP is the average number of employees expressed in terms of full-time positions for the period and includes outside agency help.
Headcount is the number of active employees in an organization. Headcount is the actual number of people employed (actual) or expected to
be employed (projected) at a given date and includes full-time and part-time staff. For 2023, employment numbers are represented in fulltime equivalents (FTE) for the Reserve Banks. FTE represent an employee's scheduled hours divided by the employer’s hours for a full-time
workweek. Part-time workers’ hours can be fractional, which means the variance may be off slightly.
1
Includes employment of the Federal Reserve Information Technology (FRIT) support function and the Office of Employee Benefits (OEB).
2
Values are subject to change based on revisions to underlying data.

generation currency-processing program, and resources to support the supervision portfolio and
other national strategic initiatives (figure D.3).
Expense growth in the monetary policy area represents continued investment in regional economic
research, and resources to support effective market operations and environmental monitoring
activities.

Figure D.1. Distribution of budgeted expenses
of the Federal Reserve System, 2023

Reserve Banks
74.5%

Figure D.2. Total expenses of the Federal
Reserve System, 2013–23

Board of Governors and OIG
13.2%

Current dollars

Billions of dollars

7
6
2013 dollars1

Currency
12.3%

4
3
2
1
0
2013

OIG: Office of Inspector General.

2015

2017

2019

2021

Calculated with the GDP price deflator.

Note: For 2023, budgeted. Includes expenses of
the OIG.

2023

152 109th Annual Report | 2022

Figure D.3. Employment in the Federal Reserve
System, 2013–23

Treasury services expenses have increased to
meet expanding scope and evolving needs,
including business and technology moderniza-

tion of payment services, financing and securi-

Thousands of persons

ties services, and accounting and reporting

services, as well as significant investment in

infrastructure and technology services.

23
22

Expenses for services to financial institutions

continue to increase as a result of the next-

2013

2015

2017

2019

2021

2023

Note: For 2023, budgeted. From 2013 to 2018,
employment numbers presented include position
counts for the Board and the OIG and average number
of personnel (ANP) for the Reserve Banks. From 2019
to 2020, employment numbers for all entities are represented in ANP. For 2021 to 2022, employment numbers presented include ANP for the Board and OIG and
headcount for the Reserve Banks. For 2023, employment numbers presented include ANP for the Board
and OIG and full-time equivalents for the
Reserve Banks.

generation currency-processing program
(NextGen).3 More recently, increased demand
for cash and social distancing protocols
related to the COVID-19 pandemic have
resulted in higher personnel costs for cash
operations and other related expenses for
essential on-site staff, such as hazard pay,
rapid COVID-19 testing, and frequent and
in-depth cleaning services. Growth in services
to financial institutions and the public is also
attributable to the addition of resources in

support of the credit and liquidity facilities created in response to the COVID-19 pandemic.

Supervision growth has moderated over the past 10 years. Growth driven by changes in the state
member bank portfolio, the buildout of the cybersecurity supervision program, and support for
other national strategic initiatives was partially offset by adjustments to supervisory mandates
from the Economic Growth, Regulatory Reform and Consumer Protection Act, the identification and
realization of operational efficiencies, and the prioritization of resources toward higher-risk activities and emerging risks. In particular, resources were temporarily shifted from supervision in 2020
and 2021 to support the credit and liquidity facilities responding to the COVID-19 pandemic.
Expenses for 2022 reflect higher-than-budgeted turnover and extended lag in hiring vacant
positions.
Growth in fee-based services is primarily for investments in the payment infrastructure modernization efforts, including the FedNowSM Service initiative, and investments associated with

The System is implementing a strategy to transition the current fleet of high-speed currency processing machines and
the associated sensor suite from the Banknote Processing System platform to the future next-generation (NextGen) processing technologies (machines and sensor technologies).

Federal Reserve System Budgets 153

multiyear technology initiatives to modernize processing platforms for Fedwire and automated
clearinghouse (ACH).4

2023 Capital Budgets
The capital budgets for the Board and Reserve Banks total $173.7 million and $888.2 million,
respectively.5 As in previous years, the 2023 capital budgets include funding for projects that support the strategic direction outlined by the Board, System leadership, and each Reserve Bank.
These strategic goals emphasize investments that continue to improve operational efficiencies,
enhance services to Bank customers, and ensure a safe and productive work environment.

Board of Governors Budgets
Board of Governors
The Board’s budget is based on the principles established by the Strategic Plan 2020–23 and provides funding to advance the plan’s goals and objectives.6 This functional alignment helps ensure
organizational resources are used to advance the Board’s mission and provides a structure to fund
strategic priorities over the four-year time horizon.
The Board’s budget process is as follows:
• At the start of the budget process, the chief operating officer and chief financial officer meet
with the Committee on Board Affairs (CBA) to recommend a specific growth target for the
Board’s operating budget. For 2023, the recommended growth target included known changes in
the run-rate of the Board’s ongoing operations. Existing and new initiatives were evaluated,
refined, and prioritized to fund the most important strategic priorities. After endorsement by the
CBA, Division of Financial Management (DFM) staff communicate the target to the Executive
Committee, which comprises the directors of each division.
• To achieve the CBA’s growth target, divisions allocate resources to their highest priorities and
seek tradeoffs and efficiencies.
• DFM staff review initial budget requests submitted by divisions and collaborate with all divisions
and functional areas to achieve the growth target.7

The Federal Reserve is developing a new round-the-clock, real-time payment and settlement service, called the FedNow
Service, to support faster payments in the United States. The initiative to modernize the ACH processing platform was
completed in early 2021.
The capital budget reported for the Board includes single-year capital expenditures and 2023 expected capital expenditures from multiyear projects of the Board and the Office of Inspector General. The capital budget reported for the
Reserve Banks includes the amounts budgeted for the Federal Reserve Information Technology support function and the
Office of Employee Benefits.
The Board approved the plan published in December 2019 and located at https://www.federalreserve.gov/publications/
files/2020-2023-gpra-strategic-plan.pdf.
Monetary Policy and Financial Stability, Supervision, Payment System and Reserve Bank Oversight, Public Engagement
and Community Development, and Mission Enablement (Support and Overhead).

154 109th Annual Report | 2022

• The chief operating officer and chief financial officer subsequently brief the CBA on the budget
submissions. Once the budget is finalized, the administrative governor submits the budget to
the full Board for review and final approval.
• DFM staff monitor expenses throughout the year. Quarterly financial forecasts provide insight
into budgetary pressures. Staff analyze variances and report the variances to senior management.
Tables D.3, D.4, and D.5 summarize the Board’s 2022 budgeted and actual expenses and its
2023 budgeted expenses by operating area; division, office, or special account; and account classification, respectively. Table D.6 summarizes the Board’s 2022 budgeted and actual authorized
positions and its budgeted positions for 2023. Each table includes a line item for the Office of
Inspector General (OIG), which is discussed later in this section.
Table D.3. Operating expenses of the Board of Governors, by operating area, 2022–23
Millions of dollars, except as noted

2022
budget

Item

2022
actual

Variance
2022 actual to
2022 budget
Amount

Percent

2023
budget

Variance
2023 budget to
2022 actual
Amount

Percent

Monetary policy and financial stability

415.5

395.9

–19.6

–4.7

409.1

13.2

3.3

Supervision

420.9

393.1

–27.9

–6.6

412.6

19.5

5.0

Payment system and Reserve Bank
oversight

75.9

72.0

–3.9

–5.1

82.2

10.3

14.3

Public engagement and community
development

53.7

52.0

–1.7

–3.1

56.9

4.9

9.4

965.9

912.9

–53.0

–5.5

960.8

47.8

5.2

36.0

37.6

1.7

4.6

37.9

0.3

0.7

Total, Board operations
Office of Inspector General

Note: This table presents financial performance for the Board’s operating areas, which align with the Reserve Banks. Monetary policy and
financial stability aligns with monetary and economic policy within the Reserve Banks; growth in 2023 is driven by strategic priorities and
employment growth. Supervision aligns with supervision and regulation within the Reserve Banks; growth in 2023 is driven by strategic priorities and employment growth. Payment system and Reserve Bank oversight is an operating area unique to the Board. Public engagement and
community development aligns with services to financial institutions and the public within the Reserve Banks. Office of Inspector General
growth in 2023 is driven by employment growth and higher Board support and overhead allocations.
1
Includes the Survey of Consumer Finances.

2022 Budget Performance
Total expenses for Board operations were $912.9 million, which were $53.0 million, or 5.5 percent, lower than the approved 2022 budget of $965.9 million.
Personnel services expenses were $28.7 million, or 4.0 percent, lower than the approved budget,
driven by higher-than-budgeted vacancy rates and lower pension expenses that fluctuate with
changes in actuarial assumptions and demographics. Goods and services expenses were

Federal Reserve System Budgets 155

Table D.4. Operating expenses of the Board of Governors, by division, office, or special account,
2022–23
Millions of dollars, except as noted

Division, office, or special account

Research and Statistics

2022
budget

2022
actual

Variance
2022 actual to
2022 budget
Amount

Percent

2023
budget

Variance
2023 budget to
2022 actual
Amount

Percent

100.3

99.4

–0.9

108.3

8.8

8.9

International Finance

40.2

39.7

–0.5

–1.3

42.2

2.5

6.2

Monetary Affairs

45.8

45.4

–0.4

–0.9

49.3

3.8

8.5

Financial Stability

20.3

18.4

–1.9

–9.4

21.0

2.6

14.0

Supervision and Regulation

128.7

120.4

–8.3

–6.4

129.7

9.2

7.7

Consumer and Community Affairs

38.8

38.2

–0.6

–1.7

41.0

2.9

7.5

Reserve Bank Operations and
Payment Systems

49.0

46.8

–2.1

–4.3

51.4

4.5

9.6

Board Members

27.4

28.1

0.7

2.5

30.0

1.9

6.8

Secretary

10.4

11.2

0.8

7.9

11.9

0.7

6.1

Legal

36.3

33.5

–2.8

–7.6

36.8

3.3

9.8

Chief Operating Officer

15.7

13.2

–2.5

–16.1

15.1

1.9

14.3

Financial Management

15.2

14.6

–0.6

–4.3

16.1

1.5

10.6

Information Technology

148.5

148.3

–0.2

–0.1

158.2

9.9

6.7

Management

185.8

180.7

–5.1

–2.8

192.7

12.0

6.6

Centrally managed benefits1

55.0

46.9

–8.1

–14.7

33.2

–13.7

–29.3

Extraordinary items2

54.1

33.3

–20.8

–38.5

48.3

15.0

45.2

–20.3

–19.1

1.3

–6.3

–24.7

–5.6

29.5

14.7

13.9

–0.8

–5.6

0.5

–13.3

–96.1

965.9

912.9

–53.0

–5.5

960.8

47.8

5.2

36.0

37.6

1.7

4.6

37.9

0.3

0.7

Savings and reallocations

Survey of Consumer Finances4
Total, Board operations
Office of Inspector General
1

For 2022, Special Projects and Retirement and Benefits were merged. Centrally managed benefits includes centralized Boardwide benefit
programs, such as accrued annual leave, academic assistance, and relocation, and retirement and post-retirement benefits, which fluctuate
because of changes in actuarial assumptions and demographics.
Includes several strategic projects, including the Martin building renovation, replacement of the Board’s human capital, financial management and procurement systems, and a centralized position pool.
Includes negative adjustments to reflect measured budget risks for large, complex projects and historical under execution. In addition,
includes Board support and overhead allocations to the Office of Inspector General and Currency.
The survey collects information about family incomes, net worth, balance sheet components, credit use, and other financial outcomes, and
is conducted every three years.

$24.3 million, or 9.7 percent, lower than the approved budget driven by lower contractual professional services, lower data, software, and hardware purchases, and reduced travel and training
spend. A slower start in ramping up new technology initiatives contributed to the under-execution.
The Board’s 2022 single-year capital spending was less than budgeted by $7.7 million, or
38.7 percent, driven by lower spending on equipment purchases and life-cycle replacements as

156 109th Annual Report | 2022

Table D.5. Operating expenses of the Board of Governors, by account classification, 2022–23
Millions of dollars, except as noted

Variance
2022 actual to
2022 budget
Amount
Percent

2022
actual

Personnel services
Salaries
Outside agency help1
Retirement/Thrift plans
Employee insurance and other benefits
Net periodic benefits costs2
Subtotal, personnel services

535.7
38.3
78.0
45.6
18.5
716.2

518.3
37.0
75.2
41.5
15.4
687.5

–17.4
–1.3
–2.8
–4.1
–3.1
–28.7

–3.2
–3.4
–3.6
–9.0
–16.8
–4.0

558.5
44.5
71.2
47.5
7.7
729.4

40.1
7.5
–4.1
6.0
–7.7
41.9

7.7
20.3
–5.4
14.5
–50.0
6.1

Goods and services
Postage and shipping
Travel
Telecommunications
Printing and binding
Publications
Stationery and supplies
Software
Furniture and equipment (F&E)
Rentals
Data, news, and research
Utilities
Repairs and alterations—building
Repairs and maintenance—F&E
Contractual professional services
Interest
Training and dues
Subsidies and contributions
All other
Depreciation/amortization
Support and overhead allocations3
Income
Subtotal, goods and services
Total, Board operations

0.3
9.2
7.1
0.7
0.3
1.1
35.6
10.0
37.5
35.7
1.9
4.9
5.5
49.2
0.0
6.0
3.2
5.1
59.9
–19.1
–4.4
249.7
965.9

0.3
8.1
6.0
0.5
0.3
1.3
31.2
10.0
37.6
30.9
2.4
4.9
5.7
38.4
0.0
3.2
2.5
6.2
58.7
–19.1
–3.8
225.4
912.9

0.1
–1.1
–1.0
–0.2
0.0
0.2
–4.4
0.1
0.1
–4.8
0.5
0.0
0.2
–10.8
0.0
–2.9
–0.7
1.1
–1.2
0.0
0.7
–24.3
–53.0

20.5
–12.2
–14.5
–28.7
–5.1
15.5
–12.5
0.8
0.3
–13.4
25.3
–0.3
4.2
–22.0
199.1
–47.4
–21.1
22.0
–2.1
0.2
–14.7
–9.7
–5.5

0.3
8.9
6.9
0.5
0.3
1.1
35.9
6.9
39.6
22.9
2.4
5.8
5.9
47.3
0.0
5.3
3.4
7.3
57.2
–21.9
–4.7
231.4
960.8

0.0
0.8
0.8
0.0
0.0
–0.2
4.7
–3.1
2.0
–8.0
–0.1
0.9
0.2
8.9
0.0
2.1
0.9
1.1
–1.4
–2.8
–0.9
6.0
47.8

–13.1
10.4
13.8
6.2
5.4
–12.5
15.2
–31.0
5.2
–25.9
–2.2
19.2
3.7
23.2
–33.4
67.1
34.2
18.3
–2.5
14.8
24.9
2.7
5.2

Office of Inspector General (OIG)
Personnel services
Goods and services4
Subtotal, excluding operating income
Operating income5
Total, OIG operations

31.2
20.1
51.4
–15.4
36.0

30.9
19.5
50.5
–12.8
37.6

–0.3
–0.6
–0.9
2.6
1.7

–0.9
–3.1
–1.8
–16.7
4.6

33.1
21.0
54.1
–16.2
37.9

2.1
1.5
3.7
–3.4
0.3

6.9
7.7
7.2
26.5
0.7

Account classification

2
3

4
5

2023
budget

Variance
2023 budget to
2022 actual
Amount
Percent

2022
budget

For 2022, contractor expenses that met the ANP definition were moved from goods and services (contractual professional services) to personnel services (outside agency help) to provide a more complete view of personnel expenses. This change is in alignment with the Reserve
Banks. For comparability, changes are also reflected for 2021 budget and actual.
Net periodic benefits costs other than services costs related to pension and post-retirement benefits.
Includes a net zero transfer of costs from the Board operating budget to the OIG and Currency operating budgets for Board support and
overhead expenses attributable to the OIG and Currency.
Includes Board support and overhead allocations to the OIG.
The OIG operating budget incorporates earned income from the Consumer Financial Protection Bureau.

Federal Reserve System Budgets 157

Table D.6. Positions authorized by the Board of Governors, by division, office, or special account,
2022–23

Division, office, or special account

2022
budget

2022
actual

Variance
2022 actual to
2022 budget
Amount

2023
budget

Percent

Variance
2023 budget to
2022 actual
Amount

Percent

Research and Statistics

364

0.0

364

0.0

International Finance

168

0.0

168

0.0

Monetary Affairs

186

0.0

186

0.0

Financial Stability

1.0

1.3

0.0

Supervision and Regulation

497

0.0

497

0.0

Consumer and Community Affairs

138

0.0

138

0.0

Reserve Bank Operations and
Payment Systems

187

190

3.0

1.6

190

0.0

Board Members

123

124

1.0

0.8

124

0.0

1.0

1.8

0.0

132

136

4.0

3.0

136

0.0

–1.0

–1.5

0.0

Secretary
Legal
Chief Operating Officer
Financial Management

0.0

Information Technology

418

419

1.0

0.2

419

0.0

Management

485

0.0

485

0.0

–9.0

–100.0

n/a

2,979

2,980

1.0

0.0

2,990

0.3

142

0.0

142

0.0

Extraordinary items1
Total, Board operations
Office of Inspector General

Note: Budget represents authorized position count at the beginning of the year, and actual represents authorized position count at year-end.
1
Centralized position pool used for strategic areas of growth.

well as routine building improvements. Multiyear capital projects spending in 2022 was higher
than budgeted by $4.6 million, or 3.9 percent. Although 2022 expenditures for multiyear capital
projects were higher than budgeted, multiyear projects are still projected to be within their project
budgets. Table D.7 summarizes the Board’s budgeted and actual capital expenditures for 2022
and 2023.

2023 Operating Expense Budget
The 2023 budget for Board operations is $960.8 million, which is $47.8 million, or 5.2 percent,
higher than 2022 actual expenses. Staff formulated the operating budget to advance the Board’s
strategic priorities, and it includes initiatives that support policy deliberations; promote safety,
soundness, and stability of financial institutions; foster a safe, efficient, and accessible payment
and settlement system; promote broader, ongoing engagement with the public; and optimize
operations.

158 109th Annual Report | 2022

Table D.7. Capital expenditures of the Board of Governors, by capital type, 2022–23

Item

2022
budget

Variance
2022 actual to
2022 budget

2022
actual

Amount

Percent

2023
budget

Variance
2023 budget to
2022 actual
Amount

Percent

Board
Single-year capital expenditures

20.0

12.3

–7.7

–38.7

21.7

9.4

76.9

Multiyear capital expenditures

118.9

123.6

4.6

3.9

151.8

28.2

22.9

Total capital expenditures

139.0

135.8

–3.1

–2.2

173.5

37.7

27.7

Single-year capital expenditures

0.0

n/a

0.2

n/a

Multiyear capital expenditures

0.0

n/a

0.0

n/a

Total capital expenditures

0.0

n/a

0.2

n/a

Board and OIG total capital
expenditures

139.0

135.8

–3.1

–2.2

173.7

37.9

27.9

Office of Inspector General (OIG)

Note: The amount reported for the multiyear capital budget represents the expected expenditure for the budget year.
n/a Not applicable.

In addition, the 2023 budget includes growth driven by employment growth expected to occur in
2023, funding for the Board’s compensation and benefit programs, and approved initiatives.
Authorized positions for 2023 are 2,990, an increase of 10 positions from the 2022 authorized number.

2023 Capital Budgets
The Board’s 2023 single-year capital budget totals $21.7 million, which is $9.4 million, or
76.9 percent, higher than 2022 actual capital expenditures. The proposed budget includes
building infrastructure needs and continued investments in automation projects and routine lifecycle replacements of equipment.
The Board’s multiyear capital budget is driven by facilities projects. Expected capital expenditures
in 2023 total $151.8 million and reflect the Board’s commitment to provide a secure, modern
environment that meets the needs of the workforce and leverages opportunities to increase collaboration, efficiency, productivity, and sustainability. Table D.7 summarizes the Board’s budgeted
and actual capital expenditures for 2022 and 2023.

Office of Inspector General
The budget for the Board’s OIG is grounded in the goals established in its strategic plan.8 The
goals are to deliver results that promote agency excellence; promote a diverse, skilled, and
8

The plan is located at https://oig.federalreserve.gov/strategic-plan.htm.

Federal Reserve System Budgets 159

engaged workforce and foster an inclusive, collaborative environment; optimize external stakeholder engagement; and advance organizational effectiveness and model a culture of continuous
improvement.
In keeping with its statutory independence, the OIG prepares its proposed budget apart from the
Board’s budget. The OIG presents its budget directly to the Board for approval.

2022 Budget Performance
Expenses for OIG operations, excluding operating income, were $50.5 million, which was $0.9 million, or 1.8 percent, lower than the approved 2022 budget of $51.4 million.
Personnel services expenses were lower than the approved budget by $0.3 million, or 0.9 percent.
Goods and services expenses were $0.6 million, or 3.1 percent, lower than the approved budget,
driven by lower contractual professional services and reduced training and telecommunications
spend. Operating income was $2.6 million, or 16.7 percent, lower than the approved budget
amount; the office conducted less work related to the Consumer Financial Protection Bureau than
planned because of the ongoing, increased oversight and investigative responsibilities related to
the Board’s programs created in response to the COVID-19 pandemic. Including operating income,
total expenses for OIG operations were $37.6 million in 2022. The OIG did not have any singleyear capital spending during 2022.

2023 Operating Expense Budget
The 2023 budget for OIG operations, excluding operating income, is $54.1 million, which is
$3.7 million, or 7.2 percent, higher than 2022 actual expenses. This increase is driven by employment growth within existing authorized staffing levels, funding for the compensation and benefit
programs, and travel, training, and equipment purchases. Including operating income, the 2023
budget for OIG operations is $37.9 million. The OIG’s single-year capital budget is $0.2 million,
which will be used to replace existing vehicles and purchase equipment.
The OIG has 142 authorized positions for 2023, with no increase to the authorized number
from 2022.

Federal Reserve Banks Budgets
Each Reserve Bank establishes operating goals for the coming year that are aligned with the
System’s key strategic objectives, devises strategies for attaining those goals, estimates required
resources, and monitors results. The Reserve Banks structure their budgets around specific functional areas reflecting the core responsibilities of the Federal Reserve:

160 109th Annual Report | 2022

• contributing to the formulation of monetary policy and enhancing monetary policy implementation to become more effective, flexible, and resilient, through public communication, outreach,
and economic education
• promoting financial stability through effective monitoring, analysis, and policy development
• promoting safety and soundness of financial institutions through effective supervision
• leading efforts to enhance the security, resiliency, functionality, and efficiency of services provided to financial institutions and the public
The Reserve Bank budget process is as follows:
• The Conference of Presidents, operating through its Committee on Spending Stewardship,
defines, in close consultation with the Board’s Committee on Federal Reserve Bank Affairs
(BAC), key strategic objectives for the System. Considering longer-term environmental trends
and historical growth rates of expense, these governance bodies articulate an aggregate
System-level growth expectation for a multiyear period.
• The Reserve Banks develop budgets that reflect this direction, through framing and making
appropriate trade-offs, and senior leadership in the Reserve Banks reviews the budgets for
alignment with Reserve Bank and System priorities.
• The Reserve Banks submit for Board review preliminary budget information, including documentation to support the budget request.
• Board staff analyzes the Banks’ budgets, both individually and in the context of System initiatives and areas such as payments and IT, where there is a high degree of cooperation among
the Banks to support Systemwide operations and initiatives.
• Expenses associated with services provided to the Treasury require authorization from the
Bureau of the Fiscal Service.
• The BAC reviews the Banks’ budgets.
• The Reserve Banks make any needed changes, and the BAC chair submits the revised budgets
to Board members for review and final action.
• Throughout the year, Reserve Bank and Board staffs monitor actual performance and compare it
with approved budgets and forecasts.
In addition to the budget approval process, the Reserve Banks must submit proposals for certain
capital expenditures to the Board for further review and approval.
Tables D.8, D.9, and D.10 summarize the Reserve Banks’ 2022 budgeted and actual expenses
and 2023 budgeted expenses by Reserve Bank, functional area, and account classifica-

Federal Reserve System Budgets 161

Table D.8. Operating expenses of the Federal Reserve Banks, by District, 2022–23
Millions of dollars, except as noted

District

Boston
New York

Variance
2022 actual to
2022 budget

2023
budget

Variance
2023 budget to
2022 actual

2022
budget

2022
actual

Amount

Percent

Amount

Percent

389.2

377.4

–11.8

–3.0

407.7

30.3

8.0

1245.2

1214.5

–30.6

–2.5

1291.3

76.8

6.3

Philadelphia

231.9

231.6

–0.3

–0.1

232.8

1.2

0.5

Cleveland

317.8

306.6

–11.1

–3.5

304.2

–2.4

–0.8

Richmond

369.2

355.9

–13.3

–3.6

394.2

38.3

10.8

Atlanta

466.9

457.4

–9.6

–2.0

476.6

19.2

4.2

Chicago

489.2

496.2

7.0

1.4

540.1

43.9

8.8

St. Louis

487.4

472.0

–15.4

–3.2

427.9

–44.0

–9.3

Minneapolis

223.4

221.6

–1.7

–0.8

257.1

35.5

16.0

Kansas City

422.8

422.3

–0.4

–0.1

487.9

65.6

15.5

Dallas

290.8

291.3

0.5

0.2

302.2

10.8

3.7

San Francisco

500.8

505.6

4.9

1.0

524.1

18.4

3.6

5,434.6

5,353.0

–81.6

–1.5

5,646.2

293.2

5.5

Total Reserve Bank operating expenses

Note: Includes expenses of the FRIT support function and the OEB and reflects allocations for all indirect services. Excludes Reserve Bank
capital expenditures as well as assessments by the Board of Governors for costs related to currency and the operations of the Board of Governors and the Consumer Financial Protection Bureau.

Table D.9. Operating expenses of the Federal Reserve Banks, by operating area, 2022–23
Millions of dollars, except as noted

Variance
2022 actual to
2022 budget

2022
actual

Amount

Percent

Amount

Percent

Monetary and economic policy

902.7

896.2

−6.4

−0.7

943.2

47.0

5.2

Services to the U.S. Treasury and other
government agencies

728.4

680.4

−48.0

−6.6

721.3

40.9

6.0

Services to financial institutions and
the public1

1457.3

1459.5

2.2

0.1

1519.8

60.3

4.1

Supervision and regulation

1670.7

1655.3

−15.4

−0.9

1722.1

66.7

4.0

675.6

661.2

−14.4

−2.1

739.9

78.7

11.9

5,434.6

5,353.0

−81.6

−1.5

5,646.2

293.2

5.5

Operating area

Fee-based services to financial
institutions2
Total Reserve Bank operating expenses3
1
2
3

2023
budget

Variance
2023 budget to
2022 actual

2022
budget

Services to financial institutions and the public includes cash services.
Includes operating expenses related to development of the FedNow Service.
Operating expenses exclude pension costs, reimbursements, and operating expense of the Board of Governors (see table D.4).

162 109th Annual Report | 2022

Table D.10. Operating expenses of the Federal Reserve Banks, by account classification, 2022–23
Millions of dollars, except as noted

Variance
2022 actual to
2022 budget

2023
budget

Variance
2023 budget to
2022 actual

Account
classification

2022
budget

2022
actual

Amount

Percent

Amount

Percent

Salaries and other benefits1

4,020.6

3,986.4

−34.2

−0.8

4,195.4

209.0

5.2

Building

283.4

282.3

−1.1

−0.4

301.8

19.4

6.9

Software costs

416.7

416.2

−0.4

−0.1

498.7

82.5

19.8

Equipment

251.5

249.6

−1.9

−0.7

231.2

−18.5

−7.4

Recoveries

−124.7

−254.6

−129.9

104.1

−236.2

18.4

−7.2

Expenses capitalized

−137.8

−139.0

−1.1

0.8

−164.8

−25.8

18.6

725.0

812.0

87.0

12.0

820.2

8.2

1.0

5,434.6

5,353.0

−81.6

−1.5

5,646.2

293.2

5.5

All other2

Total Reserve Bank operating expenses
1

Includes salaries, other personnel expense, and retirement and other employment benefit expenses. It does not include pension expenses
related to all the participants in the Retirement Plan for Employees of the Federal Reserve System and the Reserve Bank participants in the
Benefit Equalization Plan and the Supplemental Retirement Plan for Select Officers of the Federal Reserve Banks. These expenses are
recorded as a separate line item in the financial statements; see “Table G.9. Income and expenses of the Federal Reserve Banks, by Bank”
in Appendix G, “Statistical Tables.”
Includes fees, materials and supplies, travel, communications, and shipping.

tion.9 Table D.11 shows the Reserve Banks’ budgeted and actual employment for 2022 and budgeted employment for 2023.10 In addition, table D.12 shows the Reserve Banks’ budgeted and
actual capital expenditures for 2022 and budgeted capital for 2023.

2022 Budget Performance
Total 2022 operating expenses for the Reserve Banks were $5,353.0 million, which is $81.6 million, or 1.5 percent, less than the approved 2022 budget of $5,434.6 million. More than half of
the expense underrun is due to updated assumptions for staffing across several programs in the
Treasury portfolio including forecasting and financing modernizations, and Pay.gov. Also contributing to the underrun in Treasury are updated decisions in the 2022 forecast following the final
authorization from Fiscal Service and the decision to discontinue the Transforming Tax Collection
program (T2C).11 Additionally, the expense underrun is driven, to a lesser degree, by higher-thanbudgeted turnover and extended lags in filling open positions in supervision and across several
business areas. Actual headcount was 20,831, an underrun of 381 headcount, or 1.8 percent,
from 2022 budgeted staffing levels.
9

Additional information about the operating expenses of each of the Reserve Banks can be found in Appendix G, “Statistical Tables” (see “Table G.9. Income and expenses of the Federal Reserve Banks, by Bank”).
As part of the transition to the new Enterprise Resource Planning tool, and in line with industry standards, Reserve
Banks will use the updated staffing metric, full-time equivalents (FTE). Starting in 2023, employment will be represented as FTE.
On September 9, 2022, Fiscal Service notified the Federal Reserve Bank of Cleveland of their decision to discontinue
the T2C program.

Federal Reserve System Budgets 163

Table D.11. Employment at the Federal Reserve Banks, by District, and at FRIT and OEB, 2022–23
Variance
2022 actual to
2022 budget

2022
actual

Amount

Percent

Boston

1,323

1,263

−58

−4.4

1,285

New York

3,146

2,957

−189

−6.0

2,981

0.8

916

873

−43

−4.7

861

−12

−1.4

Cleveland

1,254

1,110

−107

−8.5

1,104

−6

−0.5

Richmond

1,545

1,585

4.0

1,548

−37

−2.4

Atlanta

1,726

1,699

−30

−1.7

1,729

1.8

Chicago

1,709

1,679

−30

−1.8

1,679

0.0

St. Louis

1,394

1,450

4.0

1,447

−3

−0.2

Minneapolis

1,145

1,069

−76

−6.6

1,071

0.2

Kansas City

2,146

2,182

1.5

2,132

−50

−2.3

Dallas

1,363

1,292

−70

−5.1

1,281

−11

−0.9

District

Philadelphia

San Francisco
Total, all Districts
Federal Reserve Information Technology
Office of Employee Benefits
Total, System

2023
budget

Variance
2023 budget to
2022 actual

2022
budget

Amount

Percent

1.7

1,880

1,909

1.6

1,864

−45

−2.4

19,547

19,068

−423

−2.2

18,981

−87

−0.5

1,600

1,703

5.0

1,723

1.2

−5

−7.7

−2

−3.1

21,212

20,831

−381

−1.8

20,763

−68

−0.3

Note: For 2022 budgeted and actual, employment numbers presented are represented in headcount. For 2023, employment numbers presented are full-time equivalents (FTE) for the Reserve Banks. Headcount is the actual number of people employed (actual) or expected to be
employed (projected) at a given date and includes full-time and part-time staff. FTE represent an employee’s scheduled hours divided by the
employer’s hours for a full-time workweek. Part-time workers’ hours can be fractional, which means the variance may be off slightly.

The Reserve Banks’ 2022 capital expenditures were less than budgeted by $91.7 million, or
14.8 percent, primarily driven by planned delays to projects as a result of environmental factors,
such as supply chain issues affecting the availability of materials and equipment. This underrun is
largely offset by costs associated with the new data center, which was not originally included in the
2022 budget.

2023 Operating Expense Budget
The 2023 operating budgets of the Reserve Banks total $5,646.2 million, which is $293.2 million, or 5.5 percent, higher than 2022 actual expenses.12 Growth in monetary policy expense
reflects increased resources dedicated to researching inflation and enhancing existing and developing new inflation indicators. The increase in Treasury is primarily attributable to infrastructure
and support costs for the migration of applications to the cloud and data center as well as other
technology initiatives. Additionally, cash investments are to retain resources across Reserve
Banks because of recent labor shortages and additional resources needed to support the produc12

On December 15, 2022, the Board approved the 2023 Reserve Bank operating budgets totaling $5,646.2 million. Additional information is available at https://www.federalreserve.gov/foia/budgets.htm.

164 109th Annual Report | 2022

Table D.12. Capital expenditures of the Federal Reserve Banks, by District, and of FRIT and OEB,
2022–23
Millions of dollars, except as noted

District

2022
budget

2022
actual

Variance
2022 actual to
2022 budget
Amount

2023
budget

Percent

Variance
2023 budget to
2022 actual
Amount

Percent

Boston

56.2

66.2

10.0

17.8

53.5

–12.6

–19.1

New York

70.1

58.9

–11.1

–15.9

145.8

86.8

147.3

Philadelphia

24.2

17.4

–6.8

–28.3

15.7

–1.7

–9.6

Cleveland

41.4

32.6

–8.9

–21.4

29.7

–2.9

–8.8

Richmond

18.6

13.5

–5.1

–27.3

17.0

3.5

26.2

Atlanta

57.2

20.4

–36.8

–64.4

80.9

60.5

297.3

Chicago

54.2

47.4

–6.8

–12.6

43.8

–3.6

–7.6

St. Louis

22.3

16.0

–6.3

–28.4

39.0

23.1

144.4

Minneapolis

20.3

14.6

–5.8

–28.3

34.2

19.6

134.5

Kansas City

51.0

39.3

–11.8

–23.0

69.0

29.7

75.7

Dallas

31.6

36.4

4.8

15.3

45.3

8.9

24.3

San Francisco

91.8

87.1

–4.7

–5.1

134.5

47.3

54.3

539.0

449.7

–89.3

–16.6

708.4

258.7

57.5

82.4

80.1

–2.3

–2.8

179.8

99.7

124.5

0.2

0.1

–0.1

–66.0

0.1

0.0

17.7

621.5

529.8

–91.7

–14.8

888.2

358.4

67.6

Total, all Districts
Federal Reserve Information Technology
Office of Employee Benefits

Total

tion and development phase of NextGen.13 Supervision continues to focus on areas of risk and
allocating resources to the highest priorities. Investments in fee-based services align with the Federal Reserve System’s commitment to modernize the nation's payment system and establish a
safe and efficient foundation for the future (FedNowSM Service), and 2023 spend is specifically
related to IT infrastructure and cloud services.
Total 2023 budgeted employment for the Reserve Banks, Federal Reserve Information Technology
(FRIT), and the Office of Employee Benefits (OEB) is relatively flat, 20,763 full-time equivalents
(FTE), a decrease of 68, or 0.3 percent, from 2022 actual employment levels.14
Reserve Bank officer and staff personnel expenses for 2023 total $4,195.4 million, an increase
of $209.0 million, or 5.2 percent, from 2022 actual expenses. The increase reflects expenses
13

FedCash (formerly Cash Product Office) is transitioning the existing fleet of high-speed currency processing machines
and the sensor suite from the Banknote Processing System platform to the future next-generation (NextGen) processing
infrastructure.
As noted in Table D.11, 2022 actuals are represented in headcount while 2023 budgeted employment is represented as
full-time equivalents. The variance between 2022 actuals and 2023 budget may be slightly off due to part-time workers.

Federal Reserve System Budgets 165

associated with additional staff, salary administration, variable pay, and retirement and other benefit costs.15
The 2023 Reserve Bank budgets include a salary administration program for eligible officers,
senior professionals, and staff totaling $174.5 million and a variable pay program totaling
$265.3 million.

2023 Capital Budgets
The 2023 capital budgets for the Reserve Banks, FRIT, and OEB total $888.2 million. The increase
in the 2023 capital budget is $358.4 million, or 67.6 percent, greater than the 2022 actual levels
of $529.8 million, largely reflecting strategic IT initiatives, investments in cash services, and multiyear building projects. Initiatives in the 2023 capital budget support the development and deployment phase of NextGen, target major workspace renovations, address aging building infrastructure
in several Reserve Banks, continue data center modernization, and improve IT infrastructure.

Capital Expenditures Designated for Conditional Approval
The BAC chair designated projects with an aggregate cost of $218.3 million in 2023 for conditional approval, requiring additional review and approval by the director of the Board’s Division of
Reserve Bank Operations and Payment Systems before the funds are committed.16 The expenditures designated for conditional approval include a new facility, a cash vault, and renovations to
the main lobby of a Reserve Bank. Technology projects include investments for the FedNow Service, data center modernization, and an initiative to modernize the Markets Group operations
platform.

Other Capital Expenditures
Significant capital expenditures (typically expenditures exceeding $1 million) that are not designated for conditional approval include total multiyear budgeted expenditures of $1,781.7 million
for 2023 and future years, of which the single-year 2023 budgeted expenditures are $570.7 million. This category includes building investments to support security and resiliency, and infrastructure upgrades. IT projects include ongoing IT infrastructure investments, and support for cash,
priced services, monetary policy, and supervision initiatives.
Capital initiatives that are individually less than $1 million are budgeted at an aggregate amount
of $99.3 million for 2023 and include building maintenance expenditures, scheduled software and
equipment upgrades, and equipment and furniture replacements.
15
16

The salary administration program includes a budgeted pool for merit increases, equity adjustments, and promotions.
Generally, capital expenditures that are designated for conditional approval include certain building projects, District
expenditures that substantially affect or influence future System direction or the manner in which significant services
are performed, expenditures that may be inconsistent with System direction or vary from previously negotiated purchasing agreements, and local expenditures that duplicate national efforts.

166 109th Annual Report | 2022

Currency Budget
The currency budget provides funds to reimburse the Treasury’s Bureau of Engraving and Printing
(BEP) for expenses related to the production of banknotes, and the Board’s activities related to its
role as issuing authority of the nation’s currency in the form of Federal Reserve notes.17 As
issuing authority, the Board works closely with its strategic partners, such as the Reserve Banks,
the Department of the Treasury, the BEP, and the U.S. Secret Service to help maintain the integrity
of and public confidence in our nation’s currency.
The Board works to ensure that the notes meet quality standards from production through destruction, monitors counterfeiting risks and threats for each denomination, contributes to the development of banknote security features and new design concepts, and conducts adversarial analysis
to ensure the banknote security features and designs are robust against counterfeiting. The
budget includes activities that support its issuing authority role, reimbursements to the BEP for
banknote printing, the cost of shipping new currency from the BEP to Reserve Banks and fit currency between Reserve Banks, and funds the Currency Education Program (CEP). The CEP aims to
protect and maintain confidence in U.S. currency worldwide by coordinating counterfeit detection
training to Reserve Bank and foreign central bank staff, providing information about banknote
security features, and conducting outreach to key stakeholders on U.S. Currency Program (USCP)
initiatives.
The annual currency budget process is as follows:
• Each year, under authority delegated by the Board, the director of the Division of Reserve Bank
Operations and Payment Systems submits a fiscal year print order for notes to the director of
the BEP.18
• The BEP forecasts expenses for the single-cycle calendar-year and multicycle project budgets.
The single-cycle budget included fixed and variable costs for printing Federal Reserve notes and
support costs. The multicycle budget includes costs related to significant capital investments.
Board staff develop budgets for Board expenses in relation to strategic guidance set by cash
leadership.
• The various sections of the budget are independently reviewed by Board staff, who also prepare
a consolidated budget recommendation for BAC and Board approval.
• The BAC reviews the proposed currency budget.

As mandated by the Federal Reserve Act, section 16, the Board reimburses the BEP for all costs related to the production of Federal Reserve notes. Section 16 of the Federal Reserve Act also requires that all costs incurred for the issuing
of notes shall be paid for by the Board and included in its assessments to the Reserve Banks. Operations and capital
investments of the BEP have been generally financed by a revolving fund that is reimbursed through product sales,
nearly all of which are sales of Federal Reserve notes to the Board to fulfill its annual print order.
The Board delivers the annual print order to the BEP director in August of each year, and is available on the Board’s website at https://www.federalreserve.gov/paymentsystems/coin_currency_orders.htm.

Federal Reserve System Budgets 167

• The BAC chair submits the proposed currency budget to Board members for review and
final action.

2022 Budget Performance
BEP Single-Cycle Operating Costs
BEP single-cycle operating costs were $923.8 million, which was $65.4 million, or 6.6 percent,
below the budgeted amount for 2022. The budget underrun is primarily attributable to lower note
deliveries in response to changing payment trends. Following updated payment trends, Reserve
Bank inventories, and the need to prioritize testing for the next family of notes, BEP and Board
staff agreed to reduce note deliveries to 6.0 billion notes for the calendar year 2022.

Board Single-Cycle Operating Costs
Board costs were $56.1 million, which was $14.7 million, or 20.7 percent, under the budgeted
amount for 2022. The primary driver was lower currency issuance transportation costs given the
reduced number of note deliveries from the BEP. Also contributing to the underrun was the banknote development costs, which were less than budgeted because of lower membership fees, contract terminations for banknote studies, and procurement delays.

2023 Budget
Table D.13 summarizes the 2023 single-cycle currency operating budget of $931.4 million.19 The
2023 single-cycle operating budget represents a decrease of $48.5 million, or 5.0 percent, from
2022 actual expenses. BEP costs associated with the printing of Federal Reserve notes are
92.2 percent of the operating budget. Board expenses for currency issuance, banknote development, and currency education comprise the remaining 7.8 percent of the operating budget.
Table D.14 provides an overview of the multicycle project budget that funds the BEP’s capital
investments.

BEP Single-Cycle Operating Costs
The proposed 2023 budget to fund the BEP printing and support costs is $858.7 million, which is
$65.2 million, or 7.1 percent, lower than 2022 actual expenses.
The budget for fixed printing costs is $587.0 million, which is $25.3 million, or 4.1 percent, lower
than 2022 actual expenses. The fixed costs budget decreased due to a change in budget treatment of capital investments.20 The decrease in fixed costs was slightly offset by increased
research and development costs to support testing for the next family of notes.
19
20

For 2022, the Board approved a $25,000 multicycle capital budget for adversarial analysis laboratory equipment.
A portion of the capital investments in the fixed printing costs was moved to the multicycle project budget for note production equipment.

168 109th Annual Report | 2022

Table D.13. Federal Reserve single-cycle currency budget, 2022–23
Millions of dollars, except as noted

Variance
2022 actual to
2022 budget

Variance
2023 budget to
2022 actual

2022
budget

2022
actual

Amount

Percent

Amount

Percent

BEP costs

989.2

923.8

−65.4

−6.6

858.7

−65.2

−7.1

Printing Federal Reserve notes

983.8

918.7

−65.1

−6.6

852.5

−66.3

−7.2

BEP fixed printing costs

612.5

612.3

−0.2

587.0

−25.3

−4.1

BEP variable printing costs

Item

2023
budget

371.3

306.4

−64.8

−17.5

265.5

−40.9

−13.4

BEP support costs

5.4

5.1

−0.3

–5.9

6.2

1.1

21.8

Currency reader

1.0

0.8

−0.2

–17.7

1.0

0.2

23.9

Destruction and compliance

4.4

4.3

−0.1

−3.3

5.2

0.9

21.4

Board expenses

70.8

56.1

−14.7

−20.7

72.8

16.6

29.6

Currency issuance1

37.6

26.5

−11.1

−29.5

33.6

7.1

26.9

27.1

24.2

−2.9

−10.8

32.2

8.1

33.4

6.1

5.5

−0.7

−11.2

6.9

1.4

25.8

1060.0

979.9

−80.1

−7.6

931.4

−48.5

−5.0

Banknote development

Currency education2
Operating budget
1

This line item was previously identified as Currency transportation. Starting in 2022, the Currency issuance category includes transportation,
personnel, and other support costs.
Personnel, travel, and training costs were previously displayed as line items in the budget. These costs are now included in the Banknote
development and Currency education budget categories that they support.

The budget for variable printing costs is $265.5 million, which is $40.9 million, or 13.4 percent
lower than 2022 actual expenses. The decrease is attributable to a decrease in variable printing
costs because of the lower expected note deliveries in 2023 than in 2022. The FY 2023 print
order is lower to allow the BEP to focus on strategic priorities including deferred equipment maintenance and security testing for the next family of notes.

Table D.14. Multicycle projects in the currency budget, 2022–23
Millions of dollars, except as noted

Item

Project
lifetime
budget

2021 and
prior actual

2022 budget

2022 actual

2023 budget

200.2

52.8

53.7

28.9

282.8

45.4

5.5

20.0

62.3

134.1

BEP project funding
Fort Worth facility expansion1
Washington, D.C., replacement facility2
Note production equipment
Total
1

2
3

111.9

n/a

43.8

787.0

357.5

58.3

73.7

135.0

1,204.0

The Board approved a project lifetime budget of $282.8 million and a 2023 forecast of $33.6 million. The Board funded the BEP
$4.7 million more than originally forecast in 2022, reducing the 2023 estimate to $28.9 million.
The Washington, D.C., replacement facility will seek phased approvals. The BEP's current project total estimate is $1,784.1 million.
The Board conditionally approved the budget for Note production equipment. The director of RBOPS will provide final approval when funding
is required.

Federal Reserve System Budgets 169

BEP Multicycle Project Operating Costs
The total $1,204.0 million in multicycle

Figure D.4. Federal Reserve costs for currency,
2013–2023

project funding includes $416.9 million of
approved funding for the BEP’s two construc-

1200

tion projects, the Fort Worth facility (WCF)

1000

expansion and the Washington, D.C., replacement facility (DCRF). The multicycle project

Millions of dollars

800
600

budget also includes $787.0 million of conditionally approved funding for the BEP’s note

400

production equipment.

200
0

In August 2021, the Board approved a total
WCF program budget of $282.8 million to

2013

2015

2017

2019

2021

2023

Note: For 2023, budgeted.

expand production capabilities, and 2023
funding of $28.9 million will be used to complete and close out the project. The Board approved a total of $134.1 million in the 2023 multicycle budget for the current phase of the DCRF project. The current estimated total cost is
$1,784.1 million. The multicycle project budget includes $62.3 million in 2023 funds for design
and specific construction costs. After additional design documents and construction estimates
become available, Board staff will submit a budget request for the next project phase.
Starting in 2023, the multicycle project budget will include funds for note production equipment for
both BEP facilities. The multicycle project budget includes $43.8 million in 2023 funds. Final
approval is contingent upon receiving additional information and when funding is required.

Board Single-Cycle Operating Costs
The Board costs budget is $72.8 million, which is $16.6 million, or 29.6 percent, higher than
2022 actual costs. The increase is primarily driven by increases for currency issuance and banknote development costs.
The currency issuance budget increases are primarily attributable to higher intra-System shipment
costs to rebalance banknote inventories across the System given the lower print order. In addition,
transportation contract prices are increasing due to various factors, such as labor and fuel costs.
The budget includes two additional positions and contract support to assist with upcoming
changes to the USCP and the Board’s strategic priorities.
The banknote development increases are primarily attributable to an increase in membership fees
to fund a vendor management contract to mitigate program risks. Additionally, higher contract
costs will further support security feature testing and the banknote development process.

170 109th Annual Report | 2022

The currency education program will focus on expanding its domestic and international stakeholder education outreach and maintaining the currency website. The increase is attributable to
higher personnel costs and procuring a tool to support stakeholder outreach efforts.
The currency issuance, banknote development, and currency education budget categories also
include personnel, travel, training, and support and overhead costs.21

The currency budget includes support and overhead costs for enterprise IT, facilities, law enforcement, human
resources, and other services.

171

Record of Policy Actions of the Board
of Governors

Policy actions of the Board of Governors are presented pursuant to section 10 of the Federal
Reserve Act. That section provides that the Board shall keep a record of all questions of policy
determined by the Board and shall include in its annual report to Congress a full account of such
actions. This appendix provides a summary of policy actions in 2022. Policy actions were implemented through (1) rules and regulations, (2) policy statements and other actions, and (3) discount rates for depository institutions. Policy actions were approved by all Board members in
office, unless indicated otherwise.1 More information on the actions is available from the relevant
Federal Register notices or other documents (see links in footnotes) or on request from the
Board’s Freedom of Information Office. This appendix also provides information on the Board and
the Government Performance and Results Act.
For more information on the Federal Open Market Committee’s (FOMC’s) policy actions relating to
open market operations, see Appendix B, “Minutes of Federal Open Market Committee Meetings.”

Rules and Regulations
Regulation J (Collection of Checks and Other Items by Federal Reserve Banks
and Funds Transfers Through Fedwire)
Effective October 1, 2022. On May 16, 2022, the Board approved a final rule (Docket No. R- 1750)
to govern funds transfers through the Federal Reserve Banks’ new FedNow Service.2 The final rule
includes (1) changes and clarifications to the regulations governing the Fedwire Funds Service
(Fedwire) to reflect the fact that the Reserve Banks will be operating a second funds transfer service in addition to Fedwire, and (2) technical corrections to the regulations governing the Reserve
Banks’ check service.
Voting for this action: Chair Pro Tempore Powell and Governors Brainard, Bowman, and Waller.

Regulation II (Debit Card Interchange Fees and Routing)
Effective July 1, 2023. On October 3, 2022, the Board adopted a final rule (Docket No. R-1748) to
(1) specify that the requirement that each debit card transaction must be able to be processed on
1

Chair Powell served as Chair Pro Tempore from February 5 through May 23, 2022, when he was sworn in for a second
term as Chair. Governor Brainard was sworn in as Vice Chair, and Governors Cook and Jefferson were sworn in as members of the Board, on May 23, 2022. Vice Chair for Supervision Barr was sworn in on July 19, 2022.
See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2022-06-06/pdf/2022-11090.pdf.

172 109th Annual Report | 2022

at least two unaffiliated payment card networks applies to card-not-present transactions, such as
online payments; (2) clarify the requirement that debit card issuers ensure that at least two unaffiliated networks have been enabled to process a debit card transaction; and (3) standardize and
clarify the use of certain terminology.3
Voting for this action: Chair Powell, Vice Chair Brainard, Vice Chair for Supervision Barr, and
Governors Cook, Jefferson, and Waller. Voting against this action: Governor Bowman.

Regulation ZZ (Regulation Implementing the Adjustable Interest Rate
(LIBOR) Act)
Effective February 27, 2023. On December 14, 2022, the Board approved a final rule (Docket
No. R-1775) to implement the Adjustable Interest Rate (LIBOR) Act.4 The final rule establishes
benchmark replacements based on the Secured Overnight Financing Rate that will replace LIBOR
after June 30, 2023, in certain contracts that reference certain tenors of U.S. dollar (USD) LIBOR
but do not have terms that provide for the use of a clearly defined and practicable benchmark
replacement once USD LIBOR ceases to be published or ceases to be representative. The final
rule also restates the safe harbor protections in the LIBOR Act for selection or use of the benchmark replacement selected by the Board and clarifies who is considered a “determining person”
able to select a benchmark replacement.
Voting for this action: Chair Powell, Vice Chair Brainard, Vice Chair for Supervision Barr, and
Governors Bowman, Cook, Jefferson, and Waller.

Policy Statements and Other Actions
Fedwire Funds Service
On June 21, 2022, the Board approved a notice (Docket No. OP-1613) announcing that the Federal Reserve Banks will adopt the ISO 20022 message format for the Fedwire Funds Service on a
single day, March 10, 2025.5 The Board also announced a revised testing strategy, backout
strategy, and other details concerning the implementation of the ISO 20022 message format.
Voting for this action: Chair Powell, Vice Chair Brainard, and Governors Bowman, Cook,
Jefferson, and Waller.

3
4
5

See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2022-10-11/pdf/2022-21838.pdf.
See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2023-01-26/pdf/2023-00213.pdf.
See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2022-10-24/pdf/2022-23002.pdf.

Record of Policy Actions of the Board of Governors 173

Framework for the Supervision of Insurance Organizations
Effective November 3, 2022. On September 26, 2022, the Board approved final guidance (Docket
No. OP-1765) to adopt a supervisory framework for depository institution holding companies significantly engaged in insurance activities, referred to as “supervised insurance organizations.”6
The framework is designed specifically to reflect the differences between banking and insurance,
and applies supervisory guidance and resources based explicitly on a supervised insurance organization’s complexity and individual risk profile. In addition, the framework establishes a supervisory ratings system for these firms and emphasizes that the Board will rely to the fullest extent
possible on the work of other relevant supervisors, in particular, reports and other supervisory
information provided by state insurance regulators.
Voting for this action: Chair Powell, Vice Chair Brainard, Vice Chair for Supervision Barr, and
Governors Bowman, Cook, Jefferson, and Waller.

Guidelines for Evaluating Account and Services Requests
Effective August 19, 2022. On August 14, 2022, the Board approved final guidance (Docket
No. OP-1747) on account access guidelines for Federal Reserve Banks to use in evaluating
requests for access to Reserve Bank master accounts and financial services.7 The guidelines
establish a transparent, risk-based, and consistent set of factors for reviewing such requests as
well as include a tiered review framework to provide additional clarity on the level of due diligence
and scrutiny that Reserve Banks will apply to different types of institutions that have varying
degrees of risk.
Voting for this action: Chair Powell, Vice Chair Brainard, Vice Chair for Supervision Barr, and
Governors Bowman, Cook, Jefferson, and Waller.

Interagency Questions and Answers Regarding Flood Insurance
On April 20, 2022, the Board approved guidance (Docket No. R-1742, OP-1720), published jointly
on May 31, 2022, with the Office of the Comptroller of the Currency, Federal Deposit Insurance
Corporation, Farm Credit Administration, and National Credit Union Administration (together with
the Board, the agencies), to reorganize, revise, and expand the Interagency Questions and
Answers Regarding Flood Insurance.8 The revised guidance will assist lenders in meeting their
responsibilities under federal flood insurance law and increase public understanding of the agencies’ respective flood insurance regulations. The revised questions and answers cover a broad
range of flood insurance topics, including the escrow of flood insurance premiums, the detached-

6
7
8

See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2022-10-04/pdf/2022-21414.pdf.
See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2022-08-19/pdf/2022-17885.pdf.
See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2022-05-31/pdf/2022-10414.pdf.

174 109th Annual Report | 2022

structure exemption to the requirement to purchase flood insurance, force placement procedures,
and private flood insurance.
Voting for this action: Chair Pro Tempore Powell and Governors Brainard, Bowman, and Waller.

Payment System Risk Policy
On November 29, 2022, the Board approved amendments to part II of its Policy on Payment
System Risk (PSR policy) (Docket No. OP-1749).9 Specifically, the amendments (1) expand the eligibility of depository institutions to request collateralized intraday credit from the Federal Reserve
Banks while reducing administrative steps for requesting collateralized intraday credit, (2) clarify
the eligibility standards for accessing uncollateralized intraday credit from Reserve Banks and
modify the impact of a holding company’s or affiliate’s supervisory rating on an institution’s eligibility to request uncollateralized intraday credit capacity, and (3) support the launch of the FedNow
Service (for example, by redefining the term “business day” to reflect the FedNow Service’s
24x7x365 operations). In addition, the amendments simplify the Federal Reserve Policy on Overnight Overdrafts and incorporate the Overnight Overdrafts policy as part III of the PSR policy.
Voting for this action: Chair Powell, Vice Chair Brainard, Vice Chair for Supervision Barr, and
Governors Bowman, Cook, Jefferson, and Waller.

Interest on Reserves
On March 16, 2022, the Board approved raising the interest rate paid on reserve balances from
0.15 percent to 0.4 percent, effective March 17, 2022.10 This action was taken to support the
FOMC’s decision on March 16, 2022, to raise the target range for the federal funds rate by
25 basis points, to a range of ¼ to ½ percent.
Voting for this action: Chair Pro Tempore Powell and Governors Bowman, Brainard, and Waller.
On May 4, 2022, the Board approved raising the interest rate paid on reserve balances from
0.4 percent to 0.9 percent, effective May 5, 2022.11 This action was taken to support the FOMC’s
decision on May 4, 2022, to raise the target range for the federal funds rate by 50 basis points, to
a range of ¾ to 1 percent.
Voting for this action: Chair Pro Tempore Powell and Governors Bowman, Brainard, and Waller.

10
11

See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2022-12-08/pdf/2022-26615.pdf, which also
provides information on the effective dates for the amendments.
See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20220316a1.htm.
See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20220504a1.htm.

Record of Policy Actions of the Board of Governors 175

On June 15, 2022, the Board approved raising the interest rate paid on reserve balances from
0.9 percent to 1.65 percent, effective June 16, 2022.12 This action was taken to support the
FOMC’s decision on June 15, 2022, to raise the target range for the federal funds rate by 75 basis
points, to a range of 1½ to 1¾ percent.
Voting for this action: Chair Powell, Vice Chair Brainard, and Governors Bowman, Cook,
Jefferson, and Waller.
On July 27, 2022, the Board approved raising the interest rate paid on reserve balances from
1.65 percent to 2.4 percent, effective July 28, 2022.13 This action was taken to support the
FOMC’s decision on July 27, 2022, to raise the target range for the federal funds rate by 75 basis
points, to a range of 2¼ to 2½ percent.
Voting for this action: Chair Powell, Vice Chair Brainard, Vice Chair for Supervision Barr, and
Governors Bowman, Cook, Jefferson, and Waller.
On September 21, 2022, the Board approved raising the interest rate paid on reserve balances
from 2.4 percent to 3.15 percent, effective September 22, 2022.14 This action was taken to support the FOMC’s decision on September 21, 2022, to raise the target range for the federal funds
rate by 75 basis points, to a range of 3 to 3¼ percent.
Voting for this action: Chair Powell, Vice Chair Brainard, Vice Chair for Supervision Barr, and
Governors Bowman, Cook, Jefferson, and Waller.
On November 2, 2022, the Board approved raising the interest rate paid on reserve balances from
3.15 percent to 3.9 percent, effective November 3, 2022.15 This action was taken to support the
FOMC’s decision on November 2, 2022, to raise the target range for the federal funds rate by
75 basis points, to a range of 3¾ to 4 percent.
Voting for this action: Chair Powell, Vice Chair Brainard, Vice Chair for Supervision Barr, and
Governors Bowman, Cook, Jefferson, and Waller.
On December 14, 2022, the Board approved raising the interest rate paid on reserve balances
from 3.9 percent to 4.4 percent, effective December 15, 2022.16 This action was taken to support
the FOMC’s decision on December 14, 2022, to raise the target range for the federal funds rate by
50 basis points, to a range of 4¼ to 4½ percent.
12
13
14
15
16

See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20220615a1.htm.
See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20220727a1.htm.
See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20220921a1.htm.
See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20221102a1.htm.
See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20221214a1.htm.

176 109th Annual Report | 2022

Voting for this action: Chair Powell, Vice Chair Brainard, Vice Chair for Supervision Barr, and
Governors Bowman, Cook, Jefferson, and Waller.

Discount Rates for Depository Institutions in 2022
Under the Federal Reserve Act, the boards of directors of the Federal Reserve Banks must establish rates on discount window loans to depository institutions at least every 14 days, subject to
review and determination by the Board of Governors. Therefore, about every two weeks the Board
considers proposals by the Reserve Banks for the level of the primary credit rate and for the formulas used to compute the secondary and seasonal credit rates.17 For the levels of Federal
Reserve Bank interest rates on loans to depository institutions at year-end, see table E.1.18

Table E.1. Federal Reserve Bank interest rates on loans to depository institutions, December 31, 2022
Percent

Reserve Bank

Primary credit

Secondary credit

Seasonal credit

4.50

5.00

4.40

All banks

Primary, Secondary, and Seasonal Credit
Primary credit, the Federal Reserve’s main lending program for depository institutions, is extended
at the primary credit rate. It is made available, with minimal administration, as a source of liquidity
to depository institutions that, in the judgment of the lending Federal Reserve Bank, are in generally sound financial condition. During 2022, the Board approved seven increases in the primary
credit rate, bringing the rate from ¼ percent to 4½ percent.
Following changes to the primary credit rate program announced by the Board on March 15, 2020,
in 2022 depository institutions could borrow primary credit for periods as long as 90 days, prepayable and renewable by the borrower on a daily basis.19
Secondary credit is available in appropriate circumstances to depository institutions that do not
qualify for primary credit. The secondary credit rate is set at a spread above the primary credit
rate. Throughout 2022, the spread was set at 50 basis points. At year-end, the secondary credit
rate was 5 percent.
Seasonal credit is available to smaller depository institutions to meet liquidity needs that arise
from regular swings in their loans and deposits. The rate on seasonal credit is calculated every
17

18
19

See the minutes of the Board of Governors discount rate meetings at https://www.federalreserve.gov/monetarypolicy/
discountrate.htm.
For current and historical discount rates, see https://www.frbdiscountwindow.org.
See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20200315b.htm.

Record of Policy Actions of the Board of Governors 177

two weeks as an average of selected money market yields, typically resulting in a rate close to the
target range for the federal funds rate. At year-end, the seasonal credit rate was 4.40 percent.

Votes on Changes to Discount Rates for Depository Institutions
During 2022, there were seven increases in the primary credit rate, and the Board approved proposals by the Reserve Banks to renew the formulas used to compute the secondary and seasonal
credit rates. Details on the seven actions by the Board to approve increases in the primary credit
rate are provided below.
March 16, 2022. Effective March 17, 2022, the Board approved actions taken by the boards of
directors of the Federal Reserve Banks of Boston, Philadelphia, Cleveland, Richmond, Atlanta,
Chicago, St. Louis, Minneapolis, Kansas City, and San Francisco to increase the primary credit rate
from ¼ percent to ½ percent. On March 17, 2022, the Board approved identical actions subsequently taken by the boards of directors of the Federal Reserve Banks of New York and Dallas,
effective immediately.
Voting for this action: Chair Pro Tempore Powell and Governors Brainard, Bowman, and Waller.
May 4, 2022. Effective May 5, 2022, the Board approved actions taken by the boards of directors
of all 12 Federal Reserve Banks to increase the primary credit rate from ½ percent to 1 percent.
Voting for this action: Chair Pro Tempore Powell and Governors Brainard, Bowman, and Waller.
June 15, 2022. Effective June 16, 2022, the Board approved actions taken by the board of directors of the Federal Reserve Bank of Minneapolis to increase the primary credit rate from 1 percent
to 1¾ percent. On June 16, 2022, the Board approved identical actions subsequently taken by the
boards of directors of the Federal Reserve Banks of Boston, New York, Philadelphia, Cleveland,
Richmond, Chicago, St. Louis, Kansas City, and Dallas, effective immediately. On June 17, 2022,
the Board approved identical actions subsequently taken by the boards of directors of the Federal
Reserve Banks of Atlanta and San Francisco, effective immediately.
Voting for this action: Chair Powell, Vice Chair Brainard, and Governors Bowman, Waller,
Cook, and Jefferson.
July 27, 2022. Effective July 28, 2022, the Board approved actions taken by the boards of directors
of the Federal Reserve Banks of Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta,
Chicago, Kansas City, Dallas, and San Francisco to increase the primary credit rate from 1¾ percent to 2½ percent. On July 28, 2022, the Board approved identical actions subsequently taken by
the boards of directors of the Federal Reserve Banks of St. Louis and Minneapolis, effective
immediately.

178 109th Annual Report | 2022

Voting for this action: Chair Powell, Vice Chair Brainard, Vice Chair for Supervision Barr, and
Governors Bowman, Waller, Cook, and Jefferson.
September 21, 2022. Effective September 22, 2022, the Board approved actions taken by the
boards of directors of the Federal Reserve Banks of Boston, Philadelphia, Cleveland, Richmond,
Atlanta, Chicago, St. Louis, Kansas City, and Dallas to increase the primary credit rate from
2½ percent to 3¼ percent. On September 22, 2022, the Board approved identical actions subsequently taken by the boards of directors of the Federal Reserve Banks of New York, Minneapolis,
and San Francisco, effective immediately.
Voting for this action: Chair Powell, Vice Chair Brainard, Vice Chair for Supervision Barr, and
Governors Bowman, Waller, Cook, and Jefferson.
November 2, 2022. Effective November 3, 2022, the Board approved actions taken by the boards
of directors of the Federal Reserve Banks of Boston, Cleveland, Richmond, Atlanta, Chicago,
St. Louis, Minneapolis, Dallas, and San Francisco to increase the primary credit rate from 3¼ percent to 4 percent. On November 3, 2022, the Board approved identical actions subsequently
taken by the boards of directors of the Federal Reserve Banks of New York, Philadelphia, and
Kansas City, effective immediately.
Voting for this action: Chair Powell, Vice Chair Brainard, Vice Chair for Supervision Barr, and
Governors Bowman, Waller, Cook, and Jefferson.
December 14, 2022. Effective December 15, 2022, the Board approved actions taken by the
boards of directors of all 12 Federal Reserve Banks to increase the primary credit rate from 4 percent to 4½ percent.
Voting for this action: Chair Powell, Vice Chair Brainard, Vice Chair for Supervision Barr, and
Governors Bowman, Waller, Cook, and Jefferson.

The Board of Governors and the Government Performance
and Results Act
Overview
The Government Performance and Results Act (GPRA) of 1993, as amended by the GPRA Monetization Act of 2010, requires federal agencies to prepare a strategic plan covering a multiyear
period and to submit an annual performance plan and an annual performance report. Although the
Board is not covered by GPRA, the Board voluntarily complies with the spirit of the Act and, like

Record of Policy Actions of the Board of Governors 179

other federal agencies, publicly publishes a multiyear Strategic Plan as well as an Annual Performance Plan and an Annual Performance Report.20

Strategic Plan, Performance Plan, and Performance Report
On December 27, 2019, the Board published the Strategic Plan 2020–23, which outlines the organization’s priorities across five functional areas—Monetary Policy and Financial Stability, Supervision, Payment System and Reserve Bank Oversight, Public Engagement and Community Development, and Mission Enablement—for maintaining the stability, integrity, and efficiency of the
nation’s monetary, financial, and payments systems. In formulating the Strategic Plan 2020–23,
the Board identified and prioritized the goals and objectives paramount to advancing the organization’s mission while allowing for appropriate flexibility to respond to emerging and evolving
challenges.
The Annual Performance Plan sets forth the projects and initiatives in support of the Board’s Strategic Plan’s goals and objectives during a one-year period. The Annual Performance Plan helps the
organization identify and prioritize investments and dedicate sufficient resources across the five
functions to meet its mission, while maintaining ongoing operations.
The Annual Performance Report summarizes the Board’s accomplishments throughout the performance year toward achieving the goals and objectives identified in that year’s Annual Performance
Plan. The Annual Performance Report provides transparency into the organization’s activities and
helps the Board to communicate the continued fulfillment of its dual mandate to the U.S. Congress and the public.
Ultimately, the organization’s planning and reporting processes enable the Board to identify, prioritize, and progress those activities most critical to advancing the organization’s work.

The Strategic Plan, Annual Performance Plan, and Annual Performance Report are available on the Federal Reserve
Board’s website at https://www.federalreserve.gov/publications/gpra.htm.

181

Litigation

The Board of Governors was a party in 10 lawsuits or appeals filed in 2022 and was a party in 6
other cases pending from previous years, for a total of 16 cases. In 2021, the Board was a party
in a total of 10 cases. As of December 31, 2022, nine cases were pending.

Pending
Custodia Bank v. Board of Governors and Federal Reserve Bank of Kansas City, No. 22-cv-125
(D. Wyoming, filed June 7, 2022), is an Administrative Procedure Act and constitutional law challenge regarding the issuance of a Reserve Bank master account.
Cunningham v. Board of Governors, No. 22-1311 (D.C. Circuit, filed December 8, 2022), is a petition for review of a Board order approving the acquisition of a bank under the Bank Holding
Company Act.
Fruge v. Board of Governors, No. 22-5307 (D.C. Circuit, filed November 22, 2022), is an appeal of
an order granting summary judgment for the Board in an action claiming retaliation for protected
disclosures.
Judicial Watch v. Board of Governors, No. 22-cv-37 (D. District of Columbia, filed January 18, 2022),
is an action under the Freedom of Information Act.
Judicial Watch v. Board of Governors, No. 22-cv-38 (D. District of Columbia, filed January 18, 2022),
is an action under the Freedom of Information Act.
Judicial Watch v. Board of Governors, No. 22-cv-40 (D. District of Columbia, filed January 18, 2022),
is an action under the Freedom of Information Act.
Linney’s Pizza, LLC v. Board of Governors, No. 22-cv-71 (E.D. Kentucky, filed December 9, 2022), is
an Administrative Procedure Act challenge to the debit interchange fee provisions of the Board’s
Regulation II.
The Revolving Door Project v. Board of Governors, No. 22-cv-3620 (D. District of Columbia, filed
December 2, 2022), is an action under the Freedom of Information Act.

182 109th Annual Report | 2022

Smith and Kiolbasa v. Board of Governors, No. 21-9538 (10th Circuit, filed April 21, 2021), is a
petition for review of Board prohibition orders under the Federal Deposit Insurance Act.

Resolved
Bernstein v. Federal Reserve et al., No. 21-cv-8174 (D. Arizona, filed August 3, 2021), was an
action alleging fraud and conspiracy involving multiple defendants. On January 31, 2022, the court
dismissed the claims against the Board.
Fruge v. Board of Governors, No. 20-cv-2811 (D. District of Columbia, filed October 2, 2020), was
an action claiming retaliation for protected disclosures. On September 29, 2022, the court
granted the Board’s motion for summary judgment.
Greenspan v. Board of Governors, No. 21-cv-1968 (D. District of Columbia, filed July 20, 2021), was
an action under the Freedom of Information Act. On December 1, 2022, the court granted the
Board’s motion for summary judgment.
Judicial Watch v. Board of Governors, No. 22-cv-39 (D. District of Columbia, filed January 18, 2022),
was an action under the Freedom of Information Act. On August 9, 2022, the case was dismissed
pursuant to a stipulation of the parties.
Junk v. Board of Governors, No. 19-3125 (2d Circuit, filed September 27, 2019), was an appeal
under the Freedom of Information Act. On February 8, 2022, the court of appeals affirmed the district court’s grant of summary judgment for the Board.
North Dakota Retail Association et al. v. Board of Governors, No. 21-cv-95 (D. North Dakota, filed
April 29, 2021), was an Administrative Procedure Act challenge to the debit interchange fee provisions of the Board’s Regulation II. On March 11, 2022, the court granted the Board’s motion
to dismiss.
North Dakota Retail Association et al. v. Board of Governors, No. 22-1639 (8th Circuit, filed
March 25, 2022), was an appeal of an order dismissing an Administrative Procedure Act challenge
to the debit interchange fee provisions of the Board’s Regulation II. On December 14, 2022, the
court of appeals affirmed the dismissal.

183

Statistical Tables

This appendix includes 13 statistical tables that provide updated historical data concerning Board and
System operations and activities.
Table G.1. Federal Reserve open market transactions, 2022
Millions of dollars

Type of security and
transaction
U.S. Treasury securities

Jan.

Feb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

Dec.

Total

Outright transactions2
Treasury bills
Gross purchases

Gross sales

84,520

81,097

87,915

84,046

88,926

84,069

83,383

86,352

65,740

68,730

82,209

69,001

965,988

84,520

81,097

87,915

84,046

88,926

84,069

83,383

86,352

65,740

68,730

82,209

69,001

965,988

16,357

13,627

6,535

36,519

5,068

1,620

6,751

−51,129

−97,897

−50,275

−23,854 −122,435

−18,255

−12,108

−95,871

−49,972

−521,796

30,000

29,996

30,000

43,643

46,373

60,000

53,465

293,477

47,253

5,767

4,001

57,108

Exchanges
For new bills
Redemptions
Others up to 1 year
Gross purchases
Gross sales
Exchanges
Redemptions
Over 1 to 5 years
Gross purchases
Gross sales
Exchanges

28,521

48,236

26,867

10,973

62,551

11,071

5,480

48,129

23,268

265,096

9,962

7,136

1,599

18,717

16,089

30,950

17,069

8,110

39,713

4,997

4,206

30,251

17,709

169,094

8,728

5,285

2,400

16,468

6,519

18,711

6,339

4,771

20,171

2,187

2,422

17,491

8,995

87,606

Over 5 to 10 years
Gross purchases
Gross sales
Exchanges
More than 10 years
Gross purchases
Gross sales
Exchanges
All maturities
Gross purchases

71,011

19,808

8,000

125

99,044

Gross sales

Redemptions

30,000

29,996

30,000

60,000

329,996

71,011

19,808

8,000

−30,025

−29,996

−30,000

−60,000

−59,875

−59,975

−59,925

−230,977

Net change in U.S.
Treasury securities

(continued)

184 109th Annual Report | 2022

Table G.1—continued
Type of security and
transaction

Jan.

Feb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

Dec.

Total

Federal agency obligations
Outright transactions2
Gross purchases

Gross sales

Redemptions

45,297

30,514

23,996

−339

−7,568

1,882

8,108

−8,148

−11,130

−19,638

−19,764

−17,354

25,856

116,308

50,322

31,996

−339

−7,568

−28,143

−21,888

−38,148

−71,130

−79,513

−79,739

−77,279

−205,121

n/a

1,885,565 1,907,943 1,888,989 2,036,960 2,187,082 2,425,166 2,480,504 2,464,908 2,539,421 2,549,222 2,509,114 2,541,742

n/a

Net change in federal
agency obligations
Mortgage-backed securities

Net settlements2
Net change in mortgagebacked securities
Total net change in
securities holdings4
Temporary transactions
Repurchase agreements5
Reverse repurchase
agreements5
Foreign official and
international accounts
Others

357,042

n/a

1,589,390 1,647,395 1,638,137 1,769,444 1,912,082 2,162,213 2,193,568 2,199,070 2,257,805 2,224,451 2,146,829 2,184,700

296,175

260,548

250,852

267,516

275,000

262,953

286,936

265,838

281,616

324,771

362,285

n/a

Note: Purchases of Treasury securities and federal agency obligations increase securities holdings; sales and redemptions of these securities decrease
securities holdings. Exchanges occur when the Federal Reserve rolls the proceeds of maturing securities into newly issued securities, and so exchanges
do not affect total securities holdings. Positive net settlements of mortgage-backed securities increase securities holdings, while negative net settlements of these securities decrease securities holdings. Components may not sum to totals because of rounding. See table 2 of the H.4.1 release
(https://www.federalreserve.gov/releases/h41/) for the maturity distribution of the securities.
1
Transactions exclude changes in compensation for the effects of inflation on the principal of inflation-indexed securities. Transactions include the
rollover of inflation compensation into new securities. The maturity distributions of exchanged Treasury securities are based on the announced maturity of new securities rather than actual day counts.
2
Excludes the effect of temporary transactions—repurchase agreements and reverse repurchase agreements.
3
Guaranteed by Fannie Mae, Freddie Mac, and Ginnie Mae. Monthly net change in the remaining principal balance of the securities, reported at face
value.
4
The net change in securities holdings reflects the settlements of purchases, reinvestments, sales, and maturities of portfolio securities.
5
Averages of daily business cash value of agreements, which are collateralized by U.S. Treasury securities, federal agency debt securities, and
mortgage-backed securities. For additional details on temporary transactions, see the temporary open market operations historical search available
at https://www.newyorkfed.org/markets/data-hub.
n/a Not applicable.

Statistical Tables 185

Table G.2. Federal Reserve Bank holdings of U.S. Treasury and federal agency securities,
December 31, 2020–22
Millions of dollars

Description

December 31

Change

2022

2021

2020

2021–22

2020–21

5,499,354

5,652,542

4,688,929

−153,188

963,613

1–90 days

177,692

207,113

191,154

−29,421

15,959

91 days to 1 year

111,833

118,931

134,890

−7,098

−15,959

892,496

807,747

708,144

84,749

99,603

1,915,468

2,146,103

1,759,737

−230,635

386,366

937,231

1,019,239

836,893

−82,008

182,346

1,464,634

1,353,409

1,058,111

111,225

295,298

U.S. Treasury securities

Held outright2
By remaining maturity
Bills

Notes and bonds
1 year or less
More than 1 year through 5 years
More than 5 years through 10 years
More than 10 years
By type
Bills

289,525

326,044

−36,519

Notes

3,521,904

3,748,992

3,063,037

−227,088

685,955

Bonds

1,687,925

1,577,506

1,299,848

110,419

277,658

2,347

1–90 days

91 days to 1 year

Federal agency securities1
Held outright2
By remaining maturity
Discount notes

Coupons
1 year or less
More than 1 year through 5 years
More than 5 years through 10 years
More than 10 years

2,347

2,134

1,818

213

316

213

529

−213

−316

By type
Discount notes
Coupons

2,347

0
(continued)

186 109th Annual Report | 2022

Table G.2—continued
Description

December 31
2022

2021

Change
2020

2021–22

2020–21

By issuer
Federal Home Loan Mortgage Corporation
Federal National Mortgage Association
Federal Home Loan Banks

529

1,818

2,641,403

2,615,546

2,039,467

25,857

576,079

Mortgage-backed securities3, 4
Held outright2
By remaining maturity
1 year or less
More than 1 year through 5 years
More than 5 years through 10 years

4,020

1,803

2,016

2,217

−213

49,979

60,328

72,044

−10,349

−11,716

2,587,366

2,553,389

1,965,403

33,977

587,986

Federal Home Loan Mortgage Corporation

1,001,274

977,512

667,007

23,762

310,505

Federal National Mortgage Association

1,091,106

1,075,531

888,260

15,575

187,271

549,023

562,503

484,200

−13,480

78,303

1,000

−1,000

Repo operations

FIMA Repo Facility

1,000

−1,000

2,889,555

2,183,041

216,051

706,514

1,966,990

335,839

278,459

206,400

57,380

72,059

2,553,716

1,904,582

9,651

649,134

1,894,931

More than 10 years
By issuer

Government National Mortgage Association
Temporary transactions

Repurchase agreements6

Reverse repurchase agreements6
Foreign official and international accounts
Primary dealers and expanded counterparties

Note: Components may not sum to totals because of rounding.
1
Par value.
2
Excludes the effect of temporary transactions—repurchase agreements and reverse repurchase agreements.
3
Guaranteed by Fannie Mae, Freddie Mac, and Ginnie Mae.
4
The par amount shown is the remaining principal balance of the securities.
5
Contract amount of agreements.
6
Cash value of agreements, which are collateralized by U.S. Treasury securities, federal agency debt securities, and mortgage-backed securities.

Statistical Tables 187

Table G.3. Reserve requirements of depository
institutions, December 31, 2022
Requirement
Liability type1

Percentage
of liabilities

Effective
date

Net transaction accounts

3/26/2020

Nonpersonal time deposits

12/27/1990

Eurocurrency liabilities

12/27/1990

Note: The table reflects the liability types and percentages of those
liabilities subject to requirements for the maintenance period that
contains the year end.
1
For a description of these deposit types, see Regulation D.

188 109th Annual Report | 2022

Table G.4. Banking offices and banks affiliated with bank holding companies in the United States,
December 31, 2021 and 2022
Commercial banks1
Type of office

Total

Member
National

State

Nonmember

Savings
banks

Total

4452

4224

1415

736

679

2809

228

Banks
Number, Dec. 31, 2021
Changes during 2022
New banks
Banks converted into branches
Ceased banking operations2
Other3
Net change
Number, Dec. 31, 2022

–110

–105

–26

–16

–10

–79

–5

–24

–21

–4

–2

–17

–3

–10

–2

–115

–109

–31

–26

–5

–78

–6

4337

4115

1384

710

674

2731

222

73468

71036

47825

36663

11162

23211

2432

Branches and additional offices
Number, Dec. 31, 2021
Changes during 2022
New branches
Banks converted to branches
Discontinued2
Other3
Net change
Number, Dec. 31, 2022

1046

979

661

519

142

318

110

108

–2651

–2599

–1735

–1420

–315

–864

–52

303

498

–206

704

–195

–303

–1495

–1209

–528

–1083

555

–681

–286

71973

69827

47297

35580

11717

22530

2146

3807

3690

1288

656

632

2402

117

Banks affiliated with BHCs
Number, Dec. 31, 2021
Changes during 2022
BHC-affiliated new banks
Banks converted into branches
Ceased banking operations2
Other3
Net change
Number, Dec. 31, 2022

–100

–95

–25

–16

–9

–70

–5

–22

–19

–5

–3

–2

–14

–3

–2

–8

–1

–83

–78

–23

–20

–3

–55

–5

3724

3612

1265

636

629

2347

112

Note: Includes banks, banking offices, and bank holding companies in U.S. territories and possessions (affiliated insular areas).
1
For purposes of this table, banks are entities that are defined as banks in the Bank Holding Company Act, as amended, which is implemented by
Federal Reserve Regulation Y. Generally, a bank is any institution that accepts demand deposits and is engaged in the business of making commercial loans or any institution that is defined as an insured bank in section 3(h) of the Federal Deposit Insurance Corporation Act.
2
Institutions that no longer meet the Regulation Y definition of a bank.
3
Interclass changes and sales of branches.

Statistical Tables 189

Table G.5A. Reserves of depository institutions, Federal Reserve Bank credit, and related items, year-end
1984–2022 and month-end 2022
Millions of dollars

Factors supplying reserve funds
Federal Reserve Bank credit outstanding
Period
Securities held Repurchase
outright1
agreements2
1984

167,612

1985
1986

Loans and
other credit
extensions3

2,015

3,577

186,025

5,223

205,454

16,005

1987

226,459

4,961

1988

240,628

6,861

1989

233,300

1990

241,431

1991

272,531

15,898

1992

300,423

8,094

1993

336,654

13,212

1994

368,156

10,590

1995

380,831

13,862

1996

393,132

21,583

1997

431,420

23,840

1998

452,478

30,376

1999

478,144

2000

511,833

2001
2002

Float

Other Federal
Reserve
assets4

Total4

Gold stock

Special
Treasury
drawing rights
coin and
certificate
currency
account
outstanding5

833

12,347

186,384

11,096

4,618

16,418

3,060

988

15,302

210,598

11,090

4,718

17,075

1,565

1,261

17,475

241,760

11,084

5,018

17,567

3,815

811

15,837

251,883

11,078

5,018

18,177

2,170

1,286

18,803

269,748

11,060

5,018

18,799

2,117

481

1,093

39,631

276,622

11,059

8,518

19,628

18,354

190

2,222

39,897

302,091

11,058

10,018

20,402

218

731

34,567

323,945

11,059

10,018

21,014

675

3,253

30,020

342,464

11,056

8,018

21,447

909

33,035

383,904

11,053

8,018

22,095

223

−716

33,634

411,887

11,051

8,018

22,994

135

107

33,303

428,239

11,050

10,168

24,003

4,296

32,896

451,992

11,048

9,718

24,966

2,035

719

31,452

489,466

11,047

9,200

25,543

1,636

36,966

521,475

11,046

9,200

26,270

140,640

233

−237

35,321

654,100

11,048

6,200

28,013

43,375

110

901

36,467

592,686

11,046

2,200

31,643

551,685

50,250

−23

37,658

639,604

11,045

2,200

33,017

629,416

39,500

418

39,083

708,457

11,043

2,200

34,597

2003

666,665

43,750

−319

40,847

751,005

11,043

2,200

35,468

2004

717,819

33,000

925

42,219

794,007

11,045

2,200

36,434

2005

744,215

46,750

885

39,611

831,532

11,043

2,200

36,540

2006

778,915

40,750

−333

39,895

859,294

11,041

2,200

38,206

2007

740,611

46,500

72,636

−19

41,799

901,528

11,041

2,200

38,681

2008

495,629

80,000

1,605,848

−1,494

43,553

2,223,537

11,041

2,200

38,674

2009

1,844,838

281,095

−2,097

92,811

2,216,647

11,041

5,200

42,691

2010

2,161,094

138,311

−1,421

110,255

2,408,240

11,041

5,200

43,542

2011

2,605,124

144,098

−631

152,568

2,901,159

11,041

5,200

44,198

2012

2,669,589

11,867

−486

218,296

2,899,266

11,041

5,200

44,751

2013

3,756,158

2,177

−962

246,947

4,004,320

11,041

5,200

45,493

2014

4,236,873

3,351

−555

239,238

4,478,908

11,041

5,200

46,301

2015

4,241,958

2,830

−36

221,448

4,466,199

11,041

5,200

47,567

2016

4,221,187

7,325

−804

206,551

4,434,259

11,041

5,200

48,536

2017

4,223,528

13,914

−920

194,288

4,430,809

11,041

5,200

49,381

2018

3,862,079

4,269

−770

173,324

4,038,902

11,041

5,200

49,801

2019

3,739,957

255,619

3,770

−643

156,304

4,155,007

11,041

5,200

50,138
(continued)

190 109th Annual Report | 2022

Table G.5A—continued
Factors supplying reserve funds
Federal Reserve Bank credit outstanding
Period
Securities held Repurchase
outright1
agreements2

Loans and
other credit
extensions3

Float

Other Federal
Reserve
assets4

Total4

Gold stock

Special
Treasury
drawing rights
coin and
certificate
currency
account
outstanding5

2020

6,730,743

1,000

216,669

−567

393,420

7,341,265

11,041

5,200

50,535

2021

8,270,436

77,621

−582

389,982

8,737,457

11,041

5,200

50,942

2022

8,143,103

47,288

−539

343,400

8,533,252

11,041

5,200

51,471

2022, month-end
Jan.

8,381,573

69,989

−614

393,213

8,844,161

11,041

5,200

50,998

Feb.

8,441,938

66,901

−580

376,542

8,884,801

11,041

5,200

50,939

Mar.

8,477,893

62,503

−694

377,437

8,917,139

11,041

5,200

51,009

Apr.

8,481,793

62,704

−380

378,763

8,922,880

11,041

5,200

51,065

May

8,480,484

55,501

−1,004

361,369

8,896,351

11,041

5,200

51,121

June

8,455,005

54,798

−786

362,363

8,871,380

11,041

5,200

51,191

July

8,454,622

53,084

−647

366,049

8,873,108

11,041

5,200

51,216

Aug.

8,406,632

54,070

−1,087

347,808

8,807,429

11,041

5,200

51,272

Sept.

8,335,445

54,868

−375

349,928

8,739,866

11,041

5,200

51,342

Oct.

8,255,764

53,105

−582

351,602

8,659,892

11,041

5,200

51,398

Nov.

8,177,087

52,868

−1,065

337,117

8,566,007

11,041

5,200

51,454

Dec.

8,143,103

47,288

−539

343,400

8,533,252

11,041

5,200

51,471

Note: Components may not sum to totals because of rounding.
1
Includes U.S. Treasury securities, federal agency debt securities, and mortgage-backed securities. U.S. Treasury securities and federal agency debt
securities include securities lent to dealers, which are fully collateralized by U.S. Treasury securities, federal agency securities, and other highly rated
debt securities.
2
Cash value of agreements, which are collateralized by U.S. Treasury securities, federal agency debt securities, and agency mortgage-backed
securities.
3
Includes central bank liquidity swaps; primary, seasonal, secondary credit; and other credit extensions. From 2020 to 2022, included the following
liquidity programs and 13(3) facilities: Paycheck Protection Program Liquidity Facility; MS Facilities LLC; Municipal Facility LLC; and Term AssetBacked Securities Loan Facility II LLC. From 2020 to 2021, also included Money Market Mutual Fund Liquidity Facility; Primary Dealer Credit
Facility; Commercial Paper Funding Facility II LLC; and Corporate Credit Facilities LLC. From 2015–19, included Maiden Lane LLC. For disaggregated
loans and other credit extensions from 1984–2014, refer to “Table 5B. Loans and other credit extensions, by type, year-end 1984–2014 and
month-end 2014” of the 2014 Annual Report.
4
As of 2013, unamortized discounts on securities held outright are included as a component of “Other Federal Reserve assets.” Previously, they were
included in “Other Federal Reserve liabilities and capital.”
5
Includes currency and coin (other than gold) issued directly by the U.S. Treasury. The largest components are fractional and dollar coins. For details,
refer to “U.S. Currency and Coin Outstanding and in Circulation,” Treasury Bulletin.

Statistical Tables 191

Table G.5A. Reserves of depository institutions, Federal Reserve Bank credit, and related items, year-end
1984–2022 and month-end 2022—continued
Millions of dollars

Factors absorbing reserve funds

Period

Reverse
Treasury
Currency in repurchase
cash
circulation
agreeholdings7
6
ments

Deposits with Federal Reserve Banks,
other than reserve balances
Treasury
Treasury supplemenTerm
Gentary
deposits
eral Account financing
account

Foreign

Other8

Required
clearing
balances9

Other
Federal
Reserve
liabilities
and
capital4,10

Reserve
balances
with
Federal
Reserve
Banks

1984

183,796

513

n/a

5,316

n/a

253

867

1,126

5,952

20,693

1985

197,488

550

n/a

9,351

n/a

480

1,041

1,490

5,940

27,141

1986

211,995

447

n/a

7,588

n/a

287

917

1,812

6,088

46,295

1987

230,205

454

n/a

5,313

n/a

244

1,027

1,687

7,129

40,097

1988

247,649

395

n/a

8,656

n/a

347

548

1,605

7,683

37,742

1989

260,456

450

n/a

6,217

n/a

589

1,298

1,618

8,486

36,713

1990

286,963

561

n/a

8,960

n/a

369

528

1,960

8,147

36,081

1991

307,756

636

n/a

17,697

n/a

968

1,869

3,946

8,113

25,051

1992

334,701

508

n/a

7,492

n/a

206

653

5,897

7,984

25,544

1993

365,271

377

n/a

14,809

n/a

386

636

6,332

9,292

27,967

1994

403,843

335

n/a

7,161

n/a

250

1,143

4,196

11,959

25,061

1995

424,244

270

n/a

5,979

n/a

386

2,113

5,167

12,342

22,960

1996

450,648

249

n/a

7,742

n/a

167

1,178

6,601

13,829

17,310

1997

482,327

225

n/a

5,444

n/a

457

1,171

6,684

15,500

23,447

1998

517,484

n/a

6,086

n/a

167

1,869

6,780

16,354

19,164

1999

628,359

109

n/a

28,402

n/a

1,644

7,481

17,256

16,039

2000

593,694

450

n/a

5,149

n/a

216

2,478

6,332

17,962

11,295

2001

643,301

425

n/a

6,645

n/a

1,356

8,525

17,083

8,469

2002

687,518

21,091

367

n/a

4,420

n/a

136

1,266

10,534

18,977

11,988

2003

724,187

25,652

321

n/a

5,723

n/a

162

995

11,829

19,793

11,054

2004

754,877

30,783

270

n/a

5,912

n/a

1,285

9,963

26,378

14,137

2005

794,014

30,505

202

n/a

4,573

n/a

2,144

8,651

30,466

10,678

2006

820,176

29,615

252

n/a

4,708

n/a

972

6,842

36,231

11,847

2007

828,938

43,985

259

n/a

16,120

n/a

1,830

6,614

41,622

13,986

2008

889,898

88,352

259

n/a

106,123

259,325

1,365

21,221

4,387

48,921

855,599

2009

928,249

77,732

239

n/a

186,632

5,001

2,411

35,262

3,020

63,219

973,814

2010

982,750

59,703

177

140,773

199,964

3,337

13,631

2,374

99,602

965,712

2011

1,075,820

99,900

128

85,737

n/a

125

64,909

2,480

72,766

1,559,731

2012

1,169,159

107,188

150

92,720

n/a

6,427

27,476

n/a

66,093

1,491,044

2013

1,241,228

315,924

234

162,399

n/a

7,970

26,181

n/a

63,049

2,249,070

2014

1,342,957

509,837

201

223,452

n/a

5,242

20,320

n/a

61,447

2,377,995

2015

1,424,967

712,401

266

333,447

n/a

5,231

31,212

n/a

45,320

1,977,163

2016

1,509,440

725,210

166

399,190

n/a

5,165

53,248

n/a

46,943

1,759,675

2017

1,618,006

563,958

214

228,933

n/a

5,257

77,762

n/a

47,876

1,954,426
(continued)

192 109th Annual Report | 2022

Table G.5A—continued
Factors absorbing reserve funds

Period

Reverse
Treasury
Currency in repurchase
cash
circulation
agreeholdings7
ments6

Deposits with Federal Reserve Banks,
other than reserve balances
Treasury
Treasury supplemenTerm
Gentary
deposits
eral Account financing
account

2018

1,719,302

304,012

214

2019

1,807,740

336,649

171

2020

2,089,224

216,051

2021

2,236,789

2,183,041

2022

2,309,128

2,889,555

Foreign

Other8

Required
clearing
balances9

5,245

73,073

n/a

Reserve
balances
with
Federal
Reserve
Banks

Other
Federal
Reserve
liabilities
and
capital4,10
45,007

1,555,954

402,138

n/a

403,853

n/a

5,182

74,075

n/a

44,867

1,548,849

1,728,569

n/a

21,838

194,327

n/a

163,075

2,994,932

406,108

n/a

9,331

255,263

n/a

69,766

3,644,277

446,685

n/a

8,935

218,227

n/a

43,522

2,684,814

2022, month-end
Jan.

2,228,799

1,942,340

742,843

n/a

5,198

249,119

n/a

69,582

3,673,489

Feb.

2,242,358

1,845,377

771,264

n/a

5,737

247,494

n/a

68,770

3,770,949

Mar.

2,268,077

2,120,984

651,523

n/a

7,476

270,595

n/a

68,249

3,597,411

Apr.

2,270,393

2,193,107

923,240

n/a

7,603

267,402

n/a

69,600

3,258,761

May

2,279,619

2,237,272

854,240

n/a

7,709

244,071

n/a

70,325

3,270,387

June

2,281,832

2,601,226

782,406

n/a

7,451

246,288

n/a

64,099

2,955,412

July

2,273,698

2,587,882

104

619,273

n/a

7,957

212,407

n/a

66,911

3,172,334

Aug.

2,278,728

2,528,284

669,911

n/a

8,117

208,256

n/a

65,694

3,115,849

Sept.

2,279,429

2,720,433

103

635,994

n/a

7,437

225,757

n/a

63,496

2,874,800

Oct.

2,284,752

2,637,779

596,470

n/a

7,437

199,353

n/a

60,218

2,941,420

Nov.

2,297,852

2,496,506

103

532,791

n/a

7,437

192,918

n/a

53,859

3,052,235

Dec.

2,309,128

2,889,555

446,685

n/a

8,935

218,227

n/a

43,522

2,684,814

Cash value of agreements, which are collaterized by U.S. Treasury securities, federal agency debt securities, and agency mortgage-backed securities.
Coin and paper currency held by the Treasury.
8
As of 2014, includes deposits of designated financial market utilities.
9
Required clearing balances were discontinued in July 2012.
10
In 2022, includes equity investments in MS Facilities LLC, Municipal Facility LLC, and Term Asset-Backed Securities Loan Facility II LLC. In 2020 and
2021, also included equity investments in Commercial Paper Funding Facility II LLC and Corporate Credit Facilities LLC. In 2010, included funds
from American International Group, Inc. asset dispositions, held as agent.
n/a Not applicable.
r Revised.
7

Statistical Tables 193

Table G.5B. Reserves of depository institutions, Federal Reserve Bank credit, and related items, year-end
1918–1983
Millions of dollars

Factors supplying reserve funds
Period

Securities
held
outright1

Federal Reserve Bank credit outstanding
Other
Repurchase
All
Federal
3
Loans
Float
agreements2
other4
Reserve
assets5
0
1,766
199
294
0

Total

Gold
stock6

Special
drawing
rights
certificate
account

Treasury
coin and
currency
outstanding7

1918

239

2,498

2,873

n/a

1,795

1919
1920

300
287

0
0

2,215
2,687

201
119

575
262

0
0

3,292
3,355

2,707
2,639

n/a
n/a

1,707
1,709

1921
1922

234
436

0
0

1,144
618

40
78

146
273

0
0

1,563
1,405

3,373
3,642

n/a
n/a

1,842
1,958

1923
1924

80
536

54
4

723
320

27
52

355
390

0
0

1,238
1,302

3,957
4,212

n/a
n/a

2,009
2,025

1925

367

643

378

1,459

4,112

n/a

1,977

1926
1927

312
560

3
57

637
582

45
63

384
393

0
0

1,381
1,655

4,205
4,092

n/a
n/a

1,991
2,006

1928
1929

197
488

31
23

1,056
632

24
34

500
405

0
0

1,809
1,583

3,854
3,997

n/a
n/a

2,012
2,022

1930
1931

686
775

43
42

251
638

21
20

372
378

0
0

1,373
1,853

4,306
4,173

n/a
n/a

2,027
2,035

1932
1933

1,851
2,435

4
2

235
98

14
15

41
137

0
0

2,145
2,688

4,226
4,036

n/a
n/a

2,204
2,303

1934
1935

2,430
2,430

0
1

7
5

5
12

21
38

0
0

2,463
2,486

8,238
10,125

n/a
n/a

2,511
2,476

1936

2,430

2,500

11,258

n/a

2,532

1937
1938

2,564
2,564

0
0

10
4

19
17

19
16

0
0

2,612
2,601

12,760
14,512

n/a
n/a

2,637
2,798

1939
1940

2,484
2,184

0
0

7
3

91
80

11
8

0
0

2,593
2,274

17,644
21,995

n/a
n/a

2,963
3,087

1941
1942

2,254
6,189

0
0

3
6

94
471

10
14

0
0

2,361
6,679

22,737
22,726

n/a
n/a

3,247
3,648

1943
1944

11,543
18,846

0
0

5
80

681
815

10
4

0
0

12,239
19,745

21,938
20,619

n/a
n/a

4,094
4,131

1945
1946

24,262
23,350

0
0

249
163

578
580

2
1

0
0

25,091
24,093

20,065
20,529

n/a
n/a

4,339
4,562

1947

22,559

535

23,181

22,754

n/a

4,562

1948
1949

23,333
18,885

0
0

223
78

541
534

1
2

0
0

24,097
19,499

24,244
24,427

n/a
n/a

4,589
4,598

1950
1951

20,725
23,605

53
196

67
19

1,368
1,184

3
5

0
0

22,216
25,009

22,706
22,695

n/a
n/a

4,636
4,709

1952
1953

24,034
25,318

663
598

156
28

967
935

4
2

0
0

25,825
26,880

23,187
22,030

n/a
n/a

4,812
4,894

1954
1955

24,888
24,391

44
394

143
108

808
1,585

1
29

0
0

25,885
26,507

21,713
21,690

n/a
n/a

4,985
5,008

1956
1957

24,610
23,719

305
519

50
55

1,665
1,424

70
66

0
0

26,699
25,784

21,949
22,781

n/a
n/a

5,066
5,146

1958

26,252

1,296

27,755

20,534

n/a

5,234
(continued)

194 109th Annual Report | 2022

Table G.5B—continued
Factors supplying reserve funds
Period

Securities
held
outright1

Federal Reserve Bank credit outstanding
Other
Repurchase
All
Federal
3
Loans Float
agreements2
other4
Reserve
assets5
41
458
1,590
75
0
400
33
1,847
74
0

Special
drawing
rights
certificate
account

Treasury
coin and
currency
outstanding7

Total

Gold
stock6

28,771
29,338

19,456
17,767

n/a
n/a

5,311
5,398

1959
1960

26,607
26,984

1961
1962

28,722
30,478

159
342

130
38

2,300
2,903

51
110

0
0

31,362
33,871

16,889
15,978

n/a
n/a

5,585
5,567

1963
1964

33,582
36,506

11
538

63
186

2,600
2,606

162
94

0
0

36,418
39,930

15,513
15,388

n/a
n/a

5,578
5,405

1965

40,478

290

137

2,248

187

43,340

13,733

n/a

5,575

1966
1967

43,655
48,980

661
170

173
141

2,495
2,576

193
164

0
0

47,177
52,031

13,159
11,982

n/a
n/a

6,317
6,784

1968
1969

52,937
57,154

0
0

186
183

3,443
3,440

58
64

0
2,743

56,624
63,584

10,367
10,367

n/a
n/a

6,795
6,852

1970
1971

62,142
69,481

0
1,323

335
39

4,261
4,343

57
261

1,123
1,068

67,918
76,515

10,732
10,132

400
400

7,147
7,710

1972
1973

71,119
80,395

111
100

1,981
1,258

3,974
3,099

106
68

1,260
1,152

78,551
86,072

10,410
11,567

400
400

8,313
8,716

1974
1975

84,760
92,789

954
1,335

299
211

2,001
3,688

999
1,126

3,195
3,312

92,208
102,461

11,652
11,599

400
500

9,253
10,218

1976

100,062

4,031

2,601

991

3,182

110,892

11,598

1,200

10,810

1977
1978

108,922
117,374

2,352
1,217

265
1,174

3,810
6,432

954
587

2,442
4,543

118,745
131,327

11,718
11,671

1,250
1,300

11,331
11,831

1979
1980

124,507
128,038

1,660
2,554

1,454
1,809

6,767
4,467

704
776

5,613
8,739

140,705
146,383

11,172
11,160

1,800
2,518

13,083
13,427

1981
1982

136,863
144,544

3,485
4,293

1,601
717

1,762
2,735

195
1,480

9,230
9,890

153,136
163,659

11,151
11,148

3,318
4,618

13,687
13,786

1983

159,203

1,592

918

1,605

418

8,728

172,464

11,121

4,618

15,732

Note: For a description of figures and discussion of their significance, see Banking and Monetary Statistics, 1941–1970 (Board of Governors of the
Federal Reserve System, 1976), pp. 507–23. Components may not sum to totals because of rounding.
1
In 1969 and thereafter, includes securities loaned—fully guaranteed by U.S. government securities pledged with Federal Reserve Banks—and
excludes securities sold and scheduled to be bought back under matched sale–purchase transactions. On September 29, 1971, and thereafter,
includes federal agency issues bought outright.
2
On December 1, 1966, and thereafter, includes federal agency obligations held under repurchase agreements.
3
In 1960 and thereafter, figures reflect a minor change in concept; refer to Federal Reserve Bulletin, vol. 47 (February 1961), p. 164.
4
Principally acceptances and, until August 21, 1959, industrial loans, the authority for which expired on that date.
5
For the period before April 16, 1969, includes the total of Federal Reserve capital paid in, surplus, other capital accounts, and other liabilities and
accrued dividends, less the sum of bank premises and other assets, and is reported as “Other Federal Reserve accounts”; thereafter, “Other Federal
Reserve assets” and “Other Federal Reserve liabilities and capital” are shown separately.
6
Before January 30, 1934, includes gold held in Federal Reserve Banks and in circulation.
7
Includes currency and coin (other than gold) issued directly by the Treasury. The largest components are fractional and dollar coins. For details refer
to ‘‘U.S. Currency and Coin Outstanding and in Circulation,’’ Treasury Bulletin.
n/a Not applicable.

Statistical Tables 195

Table G.5B. Reserves of depository institutions, Federal Reserve Bank credit, and related items, year-end
1918–1983—continued
Millions of dollars

Factors absorbing reserve funds

Period

Currency Treasury
in
cash
circulation holdings8

Deposits with Federal
Reserve Banks, other than
reserve balances
Other

Other
Federal
Reserve
accounts5

Required
clearing
balances

Other
Federal
Reserve
liabilities
and
capital5

Member bank reserves9

1918

4,951

288

118

With
Federal
Reserve
Banks
1,636

n/a

1,585

1919
1920

5,091
5,325

385
218

31
57

73
5

28
18

208
298

0
0

1,890
1,781

n/a
n/a

1,822
n/a

68
n/a

1921
1922

4,403
4,530

214
225

96
11

12
3

15
26

285
276

0
0

1,753
1,934

n/a
n/a

1,654
n/a

99
n/a

1923
1924

4,757
4,760

213
211

38
51

4
19

19
20

275
258

0
0

1,898
2,220

n/a
n/a

1,884
2,161

14
59

1925
1926

4,817
4,808

203
201

16
17

8
46

21
19

272
293

0
0

2,212
2,194

n/a
n/a

2,256
2,250

−44
−56

1927

4,716

208

301

2,487

n/a

2,424

1928
1929

4,686
4,578

202
216

23
29

6
6

21
24

348
393

0
0

2,389
2,355

n/a
n/a

2,430
2,428

−41
−73

1930
1931

4,603
5,360

211
222

19
54

6
79

22
31

375
354

0
0

2,471
1,961

n/a
n/a

2,375
1,994

96
−33

1932
1933

5,388
5,519

272
284

8
3

19
4

24
128

355
360

0
0

2,509
2,729

n/a
n/a

1,933
1,870

576
859

1934
1935

5,536
5,882

3,029
2,566

121
544

20
29

169
226

241
253

0
0

4,096
5,587

n/a
n/a

2,282
2,743

1,814
2,844

1936
1937

6,543
6,550

2,376
3,619

244
142

99
172

160
235

261
263

0
0

6,606
7,027

n/a
n/a

4,622
5,815

1,984
1,212

1938

6,856

2,706

923

199

242

260

8,724

n/a

5,519

3,205

1939
1940

7,598
8,732

2,409
2,213

634
368

397
1,133

256
599

251
284

0
0

11,653
14,026

n/a
n/a

6,444
7,411

5,209
6,615

1941
1942

11,160
15,410

2,215
2,193

867
799

774
793

586
485

291
256

0
0

12,450
13,117

n/a
n/a

9,365
11,129

3,085
1,988

1943
1944

20,449
25,307

2,303
2,375

579
440

1,360
1,204

356
394

339
402

0
0

12,886
14,373

n/a
n/a

11,650
12,748

1,236
1,625

1945
1946

28,515
28,952

2,287
2,272

977
393

862
508

446
314

495
607

0
0

15,915
16,139

n/a
n/a

14,457
15,577

1,458
562

1947
1948

28,868
28,224

1,336
1,325

870
1,123

392
642

569
547

563
590

0
0

17,899
20,479

n/a
n/a

16,400
19,277

1,499
1,202

1949

27,600

1,312

821

767

750

706

16,568

n/a

15,550

1,018

1950
1951

27,741
29,206

1,293
1,270

668
247

895
526

565
363

714
746

0
0

17,681
20,056

n/a
n/a

16,509
19,667

1,172
389

1952
1953

30,433
30,781

1,270
761

389
346

550
423

455
493

777
839

0
0

19,950
20,160

n/a
n/a

20,520
19,397

−570
763

1954
1955

30,509
31,158

796
767

563
394

490
402

441
554

907
925

0
0

18,876
19,005

n/a
n/a

18,618
18,903

258
102

1956
1957

31,790
31,834

775
761

441
481

322
356

426
246

901
998

0
0

19,059
19,034

n/a
n/a

19,089
19,091

−30
−57

Treasury Foreign

Currency
and
Required11 Excess11,12
coin10

(continued)

196 109th Annual Report | 2022

Table G.5B—continued
Factors absorbing reserve funds

Period

Currency Treasury
in
cash
circulation holdings8

Deposits with Federal
Reserve Banks, other than
reserve balances
Treasury Foreign

Other

Other
Federal
Reserve
accounts5

Required
clearing
balances

Other
Federal
Reserve
liabilities
and
capital5

Member bank reserves9
With
Federal
Reserve
Banks

Currency
and
Required11 Excess11,12
coin10

1958
1959

32,193
32,591

683
391

358
504

272
345

391
694

1,122
841

0
0

18,504
18,174

n/a
310

18,574
18,619

−70
−135

1960
1961

32,869
33,918

377
422

485
465

217
279

533
320

941
1,044

0
0

17,081
17,387

2,544
2,823

18,988
20,114

637
96

1962
1963

35,338
37,692

380
361

597
880

247
171

393
291

1,007
1,065

0
0

17,454
17,049

3,262
4,099

20,071
20,677

645
471

1964
1965

39,619
42,056

612
760

820
668

229
150

321
355

1,036
211

0
0

18,086
18,447

4,151
4,163

21,663
22,848

574
−238

1966

44,663

1,176

416

174

588

−147

19,779

4,310

24,321

−232

1967
1968

47,226
50,961

1,344
695

1,123
703

135
216

653
747

−773
−1,353

0
0

21,092
21,818

4,631
4,921

25,905
27,439

−182
−700

1969
1970

53,950
57,093

596
431

1,312
1,156

134
148

807
1,233

0
0

1,919
1,986

22,085
24,150

5,187
5,423

28,173
30,033

−901
−460

1971
1972

61,068
66,516

460
345

2,020
1,855

294
325

999
840

0
0

2,131
2,143

27,788
25,647

5,743
6,216

32,496
32,044

1,035
98

1973
1974

72,497
79,743

317
185

2,542
3,113

251
418

149113
127513

0
0

2,669
2,935

27,060
25,843

6,781
7,370

35,268
37,011

−1,360
−3,798

1975
1976

86,547
93,717

483
460

7,285
10,393

353
352

1,090
1,357

0
0

2,968
3,063

26,052
25,158

8,036
8,628

35,197
35,461

−1,10314
−1,535

1977

103,811

392

7,114

379

1,187

3,292

26,870

9,421

37,615

−1,265

1978
1979

114,645
125,600

240
494

4,196
4,075

368
429

1,256
1,412

0
0

4,275
4,957

31,152
29,792

10,538
11,429

42,694
44,217

−893
−2,835

1980
1981

136,829
144,774

441
443

3,062
4,301

411
505

617
781

0
0

0
117

4,671
5,261

27,456
25,111

13,654
15,576

40,558
42,145

675
−1,442

1982
1983

154,908
171,935

429
479

5,033
3,661

328
191

1,033
851

0
0

436
1,013

4,990
5,392

26,053
20,413

16,666
17,821

41,391
39,179

1,328
−945

Coin and paper currency held by the Treasury, as well as any gold in excess of the gold certificates issued to the Reserve Bank.
In November 1979 and thereafter, includes reserves of member banks, Edge Act corporations, and U.S. agencies and branches of foreign banks. On
November 13, 1980, and thereafter, includes reserves of all depository institutions.
10
Between December 1, 1959, and November 23, 1960, part was allowed as reserves; thereafter, all was allowed.
11
Estimated through 1958. Before 1929, data were available only on call dates (in 1920 and 1922 the call date was December 29). Since
September 12, 1968, the amount has been based on close-of-business figures for the reserve period two weeks before the report date.
12
For the week ending November 15, 1972, and thereafter, includes $450 million of reserve deficiencies on which Federal Reserve Banks are allowed
to waive penalties for a transition period in connection with bank adaptation to Regulation J as amended, effective November 9, 1972. Allowable
deficiencies are as follows (beginning with first statement week of quarter, in millions): 1973:Q1, $279; Q2, $172; Q3, $112; Q4, $84;
1974:Q1, $67; Q2, $58. The transition period ended with the second quarter of 1974.
13
For the period before July 1973, includes certain deposits of domestic nonmember banks and foreign-owned banking institutions held with member
banks and redeposited in full with Federal Reserve Banks in connection with voluntary participation by nonmember institutions in the Federal
Reserve System program of credit restraint. As of December 12, 1974, the amount of voluntary nonmember bank and foreign-agency and branch
deposits at Federal Reserve Banks that are associated with marginal reserves is no longer reported. However, two amounts are reported:
(1) deposits voluntarily held as reserves by agencies and branches of foreign banks operating in the United States and (2) Eurodollar liabilities.
14
Adjusted to include waivers of penalties for reserve deficiencies, in accordance with change in Board policy, effective November 19, 1975.
n/a Not applicable.
9

Statistical Tables 197

Table G.6. Principal assets and liabilities of insured commercial banks, by class of bank,
June 30, 2022 and 2021
Millions of dollars, except as noted

Member banks
Item

Total

National

State

Nonmember
banks

16,011,406

12,596,119

10,128,264

2,467,855

3,415,287

10,490,718

7,915,199

6,332,222

1,582,977

2,575,519

10,489,384

7,914,798

6,332,047

1,582,751

2,574,586

5,520,687

4,680,920

3,796,042

884,878

839,768

U.S. government securities

1,435,329

1,330,716

1,177,257

153,459

104,613

Other

4,085,359

3,350,204

2,618,785

731,419

735,155

2022
Loans and investments
Loans, gross
Net
Investments

Cash assets, total
Deposits, total
Interbank

2,056,273

1,757,276

1,267,431

489,845

298,996

16,761,985

13,427,711

10,753,594

2,674,117

3,334,274

366,177

338,671

291,247

47,423

27,506

5,785,822

4,672,612

3,634,157

1,038,455

1,113,210

10,609,986

8,416,429

6,828,190

1,588,239

2,193,557

2,094,288

1,692,336

1,371,647

320,689

401,952

4,169

1,393

732

661

2,776

14,678,778

11,645,916

9,396,565

2,249,351

3,032,862

9,605,478

7,286,717

5,832,211

1,454,506

2,318,761

9,602,709

7,285,655

5,831,454

1,454,202

2,317,053

5,073,300

4,359,198

3,564,354

794,845

714,101

U.S. government securities

1,138,339

1,086,636

977,334

109,302

51,703

Other

3,934,961

3,272,562

2,587,020

685,542

662,399

2,689,075

2,288,203

1,730,084

558,119

400,872

15,882,912

12,860,206

10,322,576

2,537,630

3,022,706

314,706

290,024

240,088

49,937

24,682

Other transactions
Other nontransactions
Equity capital
Number of banks
2021
Loans and investments
Loans, gross
Net
Investments

Cash assets, total
Deposits, total
Interbank
Other transactions
Other nontransactions
Equity capital
Number of banks

4,970,493

4,049,076

3,077,457

971,619

921,417

10,597,712

8,521,106

7,005,031

1,516,075

2,076,607

2,150,921

1,742,542

1,418,401

324,140

408,379

4,327

1,446

754

692

2,881

Note: Includes U.S.-insured commercial banks located in the United States but not U.S.-insured commercial banks operating in U.S. territories or possessions. Data are domestic assets and liabilities (except for those components reported on a consolidated basis only). Components may not sum to
totals because of rounding. Data for 2021 have been revised.

198 109th Annual Report | 2022

Table G.7. Initial margin requirements under
Regulations T, U, and X
Percent of market value

Effective date

Margin stocks Convertible bonds

Short sales,
T only1

1934, Oct. 1

25–45

n/a

1936, Feb. 1

25–55

n/a

1936, Apr. 1

n/a

1937, Nov. 1

n/a

1945, Feb. 5

n/a

1945, July 5

n/a

1946, Jan. 21

100

n/a

100

1947, Feb. 1

n/a

1949, Mar. 3

n/a

1951, Jan. 17

n/a

1953, Feb. 20

n/a

1955, Jan. 4

n/a

1955, Apr. 23

n/a

1958, Jan. 16

n/a

1958, Aug. 5

n/a

1958, Oct. 16

n/a

1960, July 28

n/a

1962, July 10

n/a

1963, Nov. 6

n/a

1968, Mar. 11

1968, June 8

1970, May 6

1971, Dec. 6

1972, Nov. 24

1974, Jan. 3

Note: These regulations, adopted by the Board of Governors pursuant
to the Securities Exchange Act of 1934, limit the amount of credit
that may be extended for the purpose of purchasing or carrying
margin securities (as defined in the regulations) when the loan is collateralized by such securities. The margin requirement, expressed as
a percentage, is the difference between the market value of the securities being purchased or carried (100 percent) and the maximum
loan value of the collateral as prescribed by the Board. Regulation T
was adopted effective October 1, 1934; Regulation U, effective
May 1, 1936; and Regulation X, effective November 1, 1971. The
former Regulation G, which was adopted effective March 11, 1968,
was merged into Regulation U, effective April 1, 1998.
1
From October 1, 1934, to October 31, 1937, the requirement was
the margin “customarily required” by the brokers and dealers.
n/a Not applicable.

Statistical Tables 199

Table G.8A. Statement of condition of the Federal Reserve Banks, by Bank, December 31, 2022 and 2021
Millions of dollars

Total

Item

2022

Boston
2021

New York

2022

2021

2022

Philadelphia

2021

Cleveland

Richmond

2022

2021

2022

2021

2022

2021

Assets
Gold certificates

11,037

348

335

3,453

3,604

327

313

526

515

791

775

Special drawing rights
certificates

5,200

196

1,818

210

237

412

Coin

1,209

1,232

108

114

190

180

Loans and securities
Loans to depository
institutions
Other loans
Securities purchased under
agreements to resell1
Treasury securities, net

2, 3

Federal agency and
government-sponsored
enterprise mortgagebacked securities, net2
Government-sponsored
enterprise debt
securities, net2, 3
Total loans and securities

5,276

555

120

1,069

138

11,450

33,853

2,077

4,713

2,505

6,435

494

5,729,247 5,917,426

114,699

98,885

2,937,394 3,344,861

131,620

124,981

228,785

215,312

399,251

396,515

2,697,583 2,685,268

54,005

44,873

1,383,055 1,517,864

61,973

56,715

107,722

97,706

187,985

179,935

2,610

8,446,140 8,639,712

2,584

168,876

143,849

1,475

103

180

175

4,324,920 4,868,913

1,325

193,688

181,814

339,134

319,548

587,578

577,137

Consolidated variable
interest entities: Assets
held, net4

30,436

40,171

22,910

29,707

7,526

10,465

n/a

Accrued interest
receivable—System Open
Market Account

34,277

30,976

687

519

17,566

17,499

788

655

1,372

1,130

2,395

2,082

Foreign currency
denominated
investments, net5

18,565

20,330

800

923

6,465

6,832

689

730

1,815

1,758

3,723

4,231

412

3,340

152

144

1,122

120

289

695

Bank premises and
equipment, net

2,700

2,610

124

108

475

489

169

167

143

138

338

335

Items in process of
collection

16,585

309

12,545

146

1,434

28,113

53,573

53,270 −675,247

2,721

1,715

8,569,354 8,756,399

222,488

229,433

Central bank liquidity
swaps6
Other assets

Deferred asset—remittances
to the Treasury7
Interdistrict settlement account
All other assets8
Total assets

−35,361

11,693

−21,458

29,613

28,809

119,685

756

276

214

4,429,847 4,236,273

160,665

195,832

322,081

353,350

626,029

705,746

1,640

(continued)

200 109th Annual Report | 2022

Table G.8A—continued
Item

Total
2022

Boston
2021

New York

Philadelphia

Cleveland

Richmond

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

86,350

79,284

783,156

750,189

73,670

72,804

125,617

114,939

189,334

172,027

Liabilities
Federal Reserve notes
outstanding
Less: Notes held by Federal
Reserve Bank

2,618,832 2,436,967
249,828

8,474

6,315

74,159

51,657

18,425

10,590

13,161

10,983

22,030

16,921

Federal Reserve notes
outstanding, net

359,871

2,258,961 2,187,139

77,876

72,969

708,997

698,532

55,245

62,214

112,456

103,956

167,304

155,106

Securities sold under
agreements to
repurchase1

2,889,555 2,183,041

57,849

36,480

1,481,480 1,233,977

66,383

46,108

115,388

79,432

201,363

146,281

2,684,814 3,644,277

1,709,016 1,810,633

394,655

Deposits
Depository institutions

73,249

103,751

37,398

85,730

90,103

165,462

247,973

Treasury, General Account

446,685

406,108

n/a

446,685

406,108

n/a

Other deposits9

227,160

264,593

62,967

61,911

258

488

647

3,358,659 4,314,978

73,260

103,770

2,218,668 2,278,652

37,399

85,731

90,130

165,720

248,461

395,302

Total deposits
Other liabilities
Accrued remittances to the
Treasury7
Deferred credit items
Consolidated variable
interest entities: Other
liabilities
All other liabilities10
Total liabilities

4,384

2,944

325

611

659

156

152

n/a

4,082

5,579

169

200

1,678

2,262

136

202

165

236

437

578

8,511,964 8,695,936

209,249

213,622

4,410,825 4,216,371

159,163

194,324

318,139

349,376

617,565

697,592

(continued)

Statistical Tables 201

Table G.8A—continued
Item

Total
2022

Boston
2021

New York

2022

2021

1,507

1,459

2022

Philadelphia

2021

Cleveland

Richmond

2022

2021

2022

2021

2022

2021

1,258

1,256

3,302

3,311

7,090

6,793

Capital accounts
Capital paid-in
Surplus (including
accumulated other
comprehensive loss)

35,014

33,877

12,457

11,797

6,785

292

2,414

2,363

244

252

640

663

1,374

1,361

Total Reserve Bank capital

41,799

40,662

1,799

1,751

14,871

14,160

1,502

1,508

3,942

3,974

8,464

8,154

Consolidated variable
interest entities formed
to administer credit and
liquidity facilities:
Non-controlling interest

15,591

19,801

11,440

14,060

4,151

5,742

n/a

Total Reserve Bank capital
and consolidated
variable interest entities
non-controlling interest

57,390

60,463

13,239

15,811

19,022

19,902

1,502

1,508

3,942

3,974

8,464

8,154

8,569,354 8,756,399

222,488

229,433

4,429,847 4,236,273

160,665

195,832

322,081

353,350

626,029

705,746

Total liabilities and
capital accounts

Note: Components may not sum to totals because of rounding.
1
Contract amount of agreements.
2
Treasury securities, government-sponsored enterprise debt securities, and federal agency and government-sponsored enterprise mortgage-backed
securities (GSE MBS) are presented at amortized cost, net of unamortized premiums and unamortized discounts.
3
Treasury securities and government-sponsored debt securities may be lent to primary dealers to facilitate the effective conduct of open market
operations. Holdings are presented net of securities lent.
4
The Federal Reserve Bank of Boston is the primary beneficiary of MS Facilities LLC, and the Federal Reserve Bank of New York is the primary beneficiary of Municipal Liquidity Facility LLC and Term Asset-Backed Securities Loan Facility II LLC. As a result, the accounts and results of operations of
those LLCs are included in the combined financial statements of the Federal Reserve Banks.
5
Valued daily at market exchange rates.
6
Dollar value of foreign currency held under these agreements valued at the exchange rate to be used when the foreign currency is returned to the
foreign central bank. This exchange rate equals the market exchange rate used when the foreign currency was acquired from the foreign
central bank.
7
“Deferred asset—remittances to the Treasury” represents the shortfall in earnings from the most recent point remittances to the Treasury were suspended. “Accrued remittances to the Treasury” represents the estimated weekly remittances to the U.S. Treasury. Total amounts are reported based
on the net position of all Reserve Banks accrued remittances and deferred assets.
8
Includes depository institution overdrafts. In 2021, furniture and equipment is reported in bank premises and equipment, net.
9
Includes deposits of government-sponsored enterprises (GSEs) and international and designated financial market utilities. Also includes certain
deposit accounts for services provided by the Reserve Banks as fiscal agents of the United States. Includes foreign official deposit accounts.
10
Includes accrued benefit costs and cash collateral posted by counterparties under commitments to purchase and sell federal agency and GSE MBS.
n/a Not applicable.
* Less than $500,000.

202 109th Annual Report | 2022

Table G.8A. Statement of condition of the Federal Reserve Banks, by Bank, December 31, 2022 and
2021—continued
Millions of dollars

Item

Atlanta

Chicago

St. Louis

Minneapolis

Kansas City

Dallas

San Francisco

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

1,593

1,534

669

712

311

325

173

183

287

302

997

938

1,562

1,501

654

424

150

153

282

574

110

225

227

158

154

221

226

510

542

161

107

709

630

1,307

236

389

3,929

12,232

445

211

2,871

8,706

Assets
Gold certificates
Special drawing rights
certificates
Coin
Loans and securities
Loans to depository
institutions
Other loans
Securities purchased under
agreements to resell1

Treasury securities, net2, 3

374,845 346,715 391,650 322,915

89,980

77,147 40,623

45,787

89,434

78,579 293,736 261,678 637,230 604,051

Federal agency and
government-sponsored
enterprise mortgagebacked securities, net2

176,493 157,336 184,406 146,536

42,366

35,009 19,127

20,778

42,109

35,658 138,304 118,747 300,036 274,112

Government-sponsored
enterprise debt
securities, net2, 3
Total loans and securities
Consolidated variable
interest entities: Assets
held, net4
Accrued interest
receivable—System Open
Market Account

169

153

177

142

552,017 504,336 576,777 469,839 132,488 112,579 63,804

132

115

287

266

78,827 132,314 114,740 432,808 380,761 941,731 887,371

n/a

2,241

1,814

2,342

1,690

539

404

243

240

535

411

1,756

1,369

3,814

3,164

Foreign currency
denominated
investments, net5

604

920

704

797

374

387

173

192

220

446

366

2,662

2,994

Central bank liquidity
swaps6

151

131

492

Bank premises and
equipment, net

218

213

228

206

104

103

106

108

246

254

242

295

254

Items in process of
collection

1,422

761

45,589

97,915

−4,041 135,797

−5,354

2,942 −20,881

29,550

−5,249

85,680 −62,160

80,913

117

Other assets

Deferred asset—remittances
to the Treasury7
Interdistrict settlement account
All other assets
Total assets

108

27,887 −1,276
100

121

603,124 607,782 578,801 609,857 128,753 142,017 63,391

111

120

134

82,735 113,060 145,863 431,596 469,890 889,653 977,623

(continued)

Statistical Tables 203

Table G.8A—continued
Item

Atlanta
2022

Chicago

2021

2022

St. Louis

Minneapolis

Kansas City

Dallas
2022

San Francisco

2021

2022

2021

2022

2021

2022

2021

2022

2021

390,723 360,449 159,578 144,134

77,447

70,794 41,316

38,061

71,321

63,274 242,458 220,480 377,861 350,532

8,437

4,873

21,307

Liabilities
Federal Reserve notes
outstanding
Less: Notes held by Federal
Reserve Bank

22,227

8,102

Federal Reserve notes
outstanding, net

36,096

32,723

36,800

5,845

7,313

50,425

27,361

62,455

53,020

354,627 327,726 122,778 121,907

69,345

64,949 32,879

33,188

50,014

55,961 192,033 193,119 315,406 297,512

Securities sold under
agreements to
repurchase1

189,054 127,909 197,529 119,129

45,381

28,461 20,488

16,892

45,106

28,989 148,146

96,538 321,388 222,845

Deposits
Depository institutions
Treasury, general account
Other deposits9
Total deposits

57,165 149,017

12,915

47,564

9,526

31,247

17,301

57,295

n/a

527 163,004 196,455

135

983

2,951

353

758

57,263 149,544 256,684 366,722

12,924

47,575

9,661

32,230

17,343

60,246

n/a
98

n/a

93,680 170,267
n/a

89,990 178,123 246,497 450,533

90,343 178,881 246,522 450,604

Other liabilities
Accrued remittances to the
Treasury7
Deferred credit items

251

148

318

611

659

Consolidated variable
interest entities: Other
liabilities

n/a

All other liabilities10

237

370

355

410

118

179

153

144

193

285

355

514

Total liabilities

601,871 606,459 577,346 608,316 127,812 141,198 63,127

82,530 112,616 145,444 430,715 468,913 883,671 971,793

(continued)

204 109th Annual Report | 2022

Table G.8A—continued
Item

Atlanta

Chicago

St. Louis

Minneapolis

Kansas City

Dallas

San Francisco

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

1,050

1,102

1,219

1,284

788

682

221

171

372

349

738

814

5,011

4,857

Capital accounts
Capital paid-in
Surplus (including
accumulated other
comprehensive loss)

203

221

236

257

153

137

143

163

971

973

Total Reserve Bank capital

1,253

1,323

1,455

1,541

941

819

264

205

444

419

881

977

5,982

5,830

Consolidated variable
interest entities formed
to administer credit and
liquidity facilities:
Non-controlling interest

n/a

Total Reserve Bank capital
and consolidated
variable interest entities
non-controlling interest

1,253

1,323

1,455

1,541

941

819

264

205

444

419

881

977

5,982

5,830

Total liabilities and
capital accounts

603,124 607,782 578,801 609,857 128,753 142,017 63,391

82,735 113,060 145,863 431,596 469,890 889,653 977,623

Note: Components may not sum to totals because of rounding.
1
Contract amount of agreements.
2
Treasury securities, government-sponsored enterprise debt securities, and general agency and government-sponsored enterprise mortgage-backed
securities (GSE MBS) are presented at amortized cost, net of unamortized premiums and unamortized discounts.
3
Treasury securities and government-sponsored debt securities may be lent to primary dealers to facilitate the effective conduct of open market
operations. Holdings are presented net of securities lent.
4
The Federal Reserve Bank of Boston is the primary beneficiary of MS Facilities LLC, and the Federal Reserve Bank of New York is the primary beneficiary of Municipal Liquidity Facility LLC and Term Asset-Backed Securities Loan Facility II LLC. As a result, the accounts and results of operations of
those LLCs are included in the combined financial statements of the Federal Reserve Banks.
5
Valued daily at market exchange rates.
6
Dollar value of foreign currency held under these agreements valued at the exchange rate to be used when the foreign currency is returned to the
foreign central bank. This exchange rate equals the market exchange rate used when the foreign currency was acquired from the foreign
central bank.
7
“Deferred asset—remittances to the Treasury” represents the shortfall in earnings from the most recent point remittances to the Treasury were suspended. “Accrued remittances to the Treasury” represents the estimated weekly remittances to the U.S. Treasury. Total amounts are reported based
on the net position of all Reserve Banks accrued remittances and deferred assets.
8
Includes depository institution overdrafts. In 2021, furniture and equipment is reported in bank premises and equipment, net. Prior year furniture
and equipment was reclassified to align with current year presentation.
9
Includes deposits of government-sponsored enterprises (GSEs) and international and designated financial market utilities. Also includes certain
deposit accounts for services provided by the Reserve Banks as fiscal agents of the United States. Includes foreign official deposit accounts.
10
Includes accrued benefit costs and cash collateral posted by counterparties under commitments to purchase and sell federal agency and GSE MBS.
* Less than $500,000.
n/a Not applicable.

Statistical Tables 205

Table G.8B. Statement of condition of the Federal Reserve Banks, December 31, 2022 and 2021 Supplemental information—collateral held against Federal Reserve notes: Federal Reserve agents’ accounts
Millions of dollars

Item
Federal Reserve notes outstanding
Less: Notes held by Federal Reserve Banks not subject to collateralization
Collateralized Federal Reserve notes

2022

2021

2,618,832

2,436,967

359,871

249,828

2,258,961

2,187,139

11,037

5,200

Collateral for Federal Reserve notes
Gold certificates
Special drawing rights certificates
U.S. Treasury securities
Total collateral
1

2,242,724

2,170,902

2,258,961

2,187,139

Face value. Includes compensation to adjust for the effect of inflation on the original face value of inflation-indexed securities.

206 109th Annual Report | 2022

Table G.9. Income and expenses of the Federal Reserve Banks, by Bank, 2022
Thousands of dollars

Item

Total

Boston

New York

Philadelphia

Cleveland

Richmond

Current income
Interest income
Primary, secondary, and seasonal
loans

87,400

2,394

15,130

1,990

172

884

Other loans, net

67,467

10,617

13,056

598

Interest income on securities
purchased under agreements
to resell

115,871,598

2,219,829

60,994,325

2,606,026

4,519,995

7,993,814

Federal agency and governmentsponsored enterprise
mortgage-backed securities, net

53,958,758

1,033,538

28,406,611

1,213,463

2,104,660

3,722,386

Government-sponsored enterprise
debt securities, net

70,049

2,979

5,165

9,147

Treasury securities, net

132,725

2,531

Foreign currency denominated
investments, net

−2,612

−136

−778

−84

−134

−605

Central bank liquidity swaps1

17,856

770

6,213

662

1,741

3,584

170,133,210

3,258,940

89,502,176

3,825,076

6,644,655

11,729,809

466,467

133,512

77,904

1,508

40,754

1,761

3,056

5,387

Total interest income
Income from priced services
Securities lending fees
Other income

6,151

107

3,814

108

193

332

550,522

1,615

178,080

1,869

3,249

5,719

170,683,732

3,260,555

89,680,256

3,826,945

6,647,904

11,735,528

4,070,647

282,606

810,514

160,314

219,597

598,674

Building

319,027

33,896

74,859

15,521

17,952

23,190

Equipment

249,630

8,486

22,475

9,747

10,344

115,324

Total other income
Total current income
Net expenses
Salaries and other benefits

Software costs

416,234

8,779

34,687

5,008

11,954

256,540

Recoveries

−314,892

−38,856

−22,896

−21,830

−6,817

−44,350

Expenses capitalized2

−138,994

−17,316

−29,406

−298

−19,970

−5,616

771,252

134,777

354,834

64,367

64,778

−601,519

5,372,904

412,372

1,245,067

232,829

297,838

342,243

946,071

Other expenses
Total operating expenses before
pension expense and
reimbursements
System pension service costs3
Reimbursable services to
government agencies

−845,909

−4,040

−190,183

−2,406

−118,491

−10,368

Operating expenses

5,473,065

408,332

2,000,955

230,423

179,347

331,875

Interest expense on securities sold
under agreements to repurchase

41,967,031

838,002

21,551,095

962,906

1,673,532

2,922,775

Interest to depository institutions
and others

60,405,339

989,893

38,460,131

868,321

1,562,693

4,671,262

4,395

2,263

101

175

306

107,849,830

2,236,314

62,014,444

2,061,751

3,415,747

7,926,218

62,833,902

1,024,241

27,665,812

1,765,194

3,232,157

3,809,310

−5,079

−102

−2,604

−117

−203

−354

−234,204

−4,325

−125,857

−5,177

−8,962

−16,026

Other expenses
Net expenses
Current net income

Additions to (+) and deductions from (−) current net income
Profit on sales of Treasury securities
Losses on sales of federal agency
and government-sponsored
enterprise mortgage-backed
securities

(continued)

Statistical Tables 207

Table G.9—continued
Item

Total

Foreign currency translation (losses)

−1,761,841

−77,578

−604,630

−64,488

Other components of net benefit
cost

786,976

20,227

632,928

Net additions or deductions

−34,104

−9

−23,519

−1,248,252

−61,787

Board expenditures4

1,015,000

Cost of currency

1,053,616

Net additions or deductions to
current net income

Boston

New York

Philadelphia

Cleveland

Richmond

−163,958

−358,855

8,201

6,629

26,400

−6

−7,700

−2,344

−123,682

−61,587

−174,194

−351,179

43,363

353,601

37,055

97,970

204,463

44,956

214,418

41,065

65,492

94,054

722,200

31,901

247,174

26,517

67,310

147,271

2,790,816

120,220

815,193

104,637

230,772

445,788

Assessments by Board

Consumer Financial Protection
Bureau5
Assessments by the Board of
Governors
Consolidated variable interest entities
Net income from consolidated
variable interest entities

1,741,927

1,615,099

126,827

Non-controlling interest in
consolidated variable interest
entities (income), net

−1,701,018

−1,601,611

−99,407

Reserve Bank and consolidated
variable interest entities net
income before providing for
remittances to the Treasury

58,835,743

855,722

26,754,357

1,598,970

2,827,191

3,012,343

Earnings remittances to the Treasury

27,601,067

1,596,554

2,774,888

2,866,787

59,445,569

826,952

Net (loss) income after providing for
remittances to the Treasury

−609,826

28,770

−846,710

2,416

52,303

145,556

Other comprehensive income

1,818,927

24,908

1,303,473

32,855

37,213

105,433

Comprehensive income

1,209,101

53,678

456,763

35,271

89,515

250,989

1,209,101

53,854

405,773

43,150

112,781

237,622

−175

50,991

−7,879

−23,266

13,367

Distribution of comprehensive income
Dividends on capital stock
Transferred to/from surplus and
change in accumulated other
comprehensive income
Remittances transferred to the
Treasury6

76,030,136

1,135,969

40,146,207

1,614,755

2,920,964

4,300,505

−16,584,567

−309,017

−12,545,140

−18,201

−146,076

−1,433,718

Earnings remittances to the Treasury,
net

59,445,569

826,952

27,601,067

1,596,554

2,774,888

2,866,787

Total distribution of
comprehensive income

60,654,670

880,631

28,057,831

1,631,825

2,864,403

3,117,776

Deferred asset increase

Note: Components may not sum to totals because of rounding.
1
Represents interest income recognized on swap agreements with foreign central banks.
2
Includes expenses for labor and materials capitalized and depreciated or amortized as charges to activities in the periods benefited.
3
Reflects the effect of the Financial Accounting Standards Board’s Codification Topic (ASC 715) Compensation-Retirement Benefits. Pension service
costs for the System Retirement Plan is recorded on behalf of the System in the books of the Federal Reserve Bank of New York.
4
For additional details, see the Board of Governors Financial Statements at https://www.federalreserve.gov/aboutthefed/audited-annual-financialstatements.htm.
5
The Board of Governors assesses the Reserve Banks to fund the operations of the Consumer Financial Protection Bureau. These assessments are
allocated to each Reserve Bank based on each Reserve Bank’s capital and surplus balances as of the most recent quarter.
6
Represents excess earnings remitted to the Treasury after providing for the cost of operations, payment of dividends, and reservation of surplus. On
a weekly basis, if earnings become less than the cost of operations, payment of dividends, and reservation of surplus, the Reserve Banks suspend
weekly remittances to the Treasury and record a deferred asset.

208 109th Annual Report | 2022

Table G.9. Income and expenses of the Federal Reserve Banks, by Bank, 2022—continued
Thousands of dollars

Item

Atlanta

Chicago

St. Louis

Minneapolis

Kansas City

Dallas

San Francisco

Current income
Interest income
Primary, secondary, and seasonal
loans
Other loans, net
Interest income on securities
purchased under agreements
to resell

5,045

7,309

235

695

3,998

3,514

46,034

419

24,754

667

200

17,000

Treasury securities, net

7,374,727

7,504,607

1,739,248

841,127

1,738,388

5,727,895

12,611,618

Federal agency and governmentsponsored enterprise
mortgage-backed securities, net

3,433,859

3,493,951

809,779

391,730

809,397

2,666,955

5,872,430

Government-sponsored enterprise
debt securities, net

8,424

8,548

1,983

966

1,983

6,536

14,414

Foreign currency denominated
investments, net

−222

−113

−41

−50

−32

−417

Central bank liquidity swaps1

586

678

359

185

427

2,562

10,822,455

11,015,046

2,551,982

1,259,313

2,554,586

8,405,530

18,563,643

235,961

96,994

4,991

5,112

1,182

561

1,180

3,885

8,524

Total interest income
Income from priced services
Securities lending fees
Other income

307

314

256

518

241,259

102,420

1,256

614

1,257

4,141

9,042

11,063,714

11,117,466

2,553,238

1,259,927

2,555,843

8,409,671

18,572,685

295,386

337,286

250,420

180,699

317,975

217,948

399,228

Building

19,755

30,535

17,095

14,153

22,299

21,401

28,372

Equipment

15,056

13,373

5,960

5,321

13,236

12,399

17,908

Software costs

16,173

7,710

6,626

3,367

32,790

7,140

25,458

Recoveries

−7,899

−19,509

−8,516

−14,001

−42,182

−29,918

−58,118

Total other income
Total current income
Net expenses
Salaries and other benefits

Expenses capitalized 2

−1,539

−4,676

−2,705

−9,797

−24,974

−3,689

−19,005

Other expenses

185,707

122,337

207,793

25,932

45,883

60,709

105,653

Total operating expenses before
pension expense and
reimbursements

522,639

487,056

476,673

205,674

365,027

285,990

499,496

System pension service costs3
Reimbursable services to
government agencies

−22,477

−4,157

−280,481

−47,289

−143,837

−19,668

−2,513

Operating expenses

500,162

482,900

196,192

158,385

221,189

266,322

496,984

Interest expense on securities sold
under agreements to repurchase

2,741,266

2,859,796

657,353

297,993

653,577

2,147,004

4,661,732

Interest to depository institutions
and others

1,247,330

4,617,626

385,016

251,123

485,366

1,906,061

4,960,516

287

298

224

487

Net expenses

4,489,045

7,960,620

1,238,630

707,532

1,360,200

4,319,611

10,119,719

Current net income

6,574,669

3,156,846

1,314,608

552,395

1,195,643

4,090,060

8,452,966

Other expenses

Additions to (+) and deductions from (−) current net income
Profit on sales of Treasury securities
Profit losses on sales of federal
agency and governmentsponsored enterprise
mortgage-backed securities

−332

−347

−80

−36

−79

−260

−565

−14,572

−14,494

−3,385

−1,732

−3,400

−11,233

−25,044

(continued)

Statistical Tables 209

Table G.9—continued
Item
Foreign currency translation (losses)

Atlanta

Chicago

St. Louis

Minneapolis

Kansas City

Dallas

San Francisco

−66,615

−67,723

−34,653

−11,405

−18,548

−37,930

−255,455

Other components of net benefit
cost

886

21,416

14,184

11,479

13,271

10,906

20,450

Net additions or deductions

124

−79

−388

−9

−36

−101

−80,509

−61,227

−24,322

−1,703

−8,792

−38,553

−260,715

Net additions or deductions to
current net income
Assessments by Board
Board expenditures4

32,777

37,656

21,204

5,800

10,515

25,273

145,323

164,215

81,404

34,352

19,764

32,285

92,723

168,888

Consumer Financial Protection
Bureau5

26,478

26,848

14,845

4,312

7,648

17,573

104,323

Assessments by the Board of
Governors

223,470

145,909

70,401

29,876

50,448

135,569

418,534

Net income from consolidated
variable interest entities

Non-controlling interest in
consolidated variable interest
entities (income), net

Reserve Bank and consolidated
variable interest entities net
income before providing for
remittances to the Treasury

6,270,691

2,949,711

1,219,885

520,816

1,136,403

3,915,937

7,773,716

Earnings remittances to the Treasury

6,306,503

2,973,115

1,208,093

539,113

1,143,026

3,945,870

7,663,601

Net (loss) income after providing for
remittances to the Treasury

110,115

Cost of currency

Consolidated variable interest entities

−35,812

−23,404

11,792

−18,297

−6,623

−29,933

Other comprehensive income

60,071

51,657

33,859

37,450

25,733

44,761

61,514

Comprehensive income

24,259

28,253

45,651

19,153

19,110

14,828

171,629

41,606

49,215

29,511

10,407

17,099

34,747

173,336

−17,347

−20,962

16,140

8,746

2,011

−19,919

−1,707

6,306,503

4,394,803

1,208,093

539,113

1,143,026

4,029,267

8,424,603

−1,421,688

−83,397

−761,002

Earnings remittances to the Treasury,
net

6,306,503

2,973,115

1,208,093

539,113

1,143,026

3,945,870

7,663,601

Total distribution of
comprehensive income

6,330,762

3,001,368

1,253,744

558,266

1,162,136

3,960,698

7,835,230

Distribution of comprehensive income
Dividends on capital stock
Transferred to/from surplus and
change in accumulated other
comprehensive income
Remittances transferred to the
Treasury6
Deferred asset increase

210 109th Annual Report | 2022

Table G.10. Income and expenses of the Federal Reserve Banks, 1914–2022
Thousands of dollars

Transferred
to/from
surplus
Consumer Other
and
compreTransferred
Financial
Dividends
change in
Protection hensive
Interest on to/from
paid
accumu4
income
Costs of Bureau
Statutory Federal surplus
lated
3
currency and Office (loss)
transfers Reserve
other
of
notes
compreFinancial
hensive
2
Research
income5

Assessments by the
Board of Governors
Federal
Reserve
Bank
and
period

Current
income

Net
additions
Net
or
expenses
Board
deductions
expendi1
(−)
tures

Distributions to the
U.S. Treasury

All banks
1914–15

2,173

2,018

302

n/a

217

n/a

1916

5,218

2,082

−193

192

n/a

1,743

n/a

1917

16,128

4,922

−1,387

238

n/a

6,804

1,134

n/a

1,134

1918

67,584

10,577

−3,909

383

n/a

5,541

n/a

48,334

1919

102,381

18,745

−4,673

595

n/a

5,012

2,704

n/a

70,652

1920

181,297

27,549

−3,744

710

n/a

5,654

60,725

n/a

82,916

1921

122,866

33,722

−6,315

741

n/a

6,120

59,974

n/a

15,993

1922

50,499

28,837

−4,442

723

n/a

6,307

10,851

n/a

−660

1923

50,709

29,062

−8,233

703

n/a

6,553

3,613

n/a

2,546

1924

38,340

27,768

−6,191

663

n/a

6,682

114

n/a

−3,078

1925

41,801

26,819

−4,823

709

n/a

6,916

n/a

2,474

1926

47,600

24,914

−3,638

722

1,714

n/a

7,329

818

n/a

8,464

1927

43,024

24,894

−2,457

779

1,845

n/a

7,755

250

n/a

5,044

1928

64,053

25,401

−5,026

698

806

n/a

8,458

2,585

n/a

21,079

1929

70,955

25,810

−4,862

782

3,099

n/a

9,584

4,283

n/a

22,536

1930

36,424

25,358

−93

810

2,176

n/a

10,269

n/a

−2,298

1931

29,701

24,843

311

719

1,479

n/a

10,030

n/a

−7,058

1932

50,019

24,457

−1,413

729

1,106

n/a

9,282

2,011

n/a

11,021

1933

49,487

25,918

−12,307

800

2,505

n/a

8,874

n/a

−917

1934

48,903

26,844

−4,430

1,372

1,026

n/a

8,782

n/a

−60

6,510

1935

42,752

28,695

−1,737

1,406

1,477

n/a

8,505

298

n/a

607

1936

37,901

26,016

486

1,680

2,178

n/a

7,830

227

n/a

103

353

1937

41,233

25,295

−1,631

1,748

1,757

n/a

7,941

177

n/a

2,616

1938

36,261

25,557

2,232

1,725

1,630

n/a

8,019

120

n/a

−419

1,862

1939

38,501

25,669

2,390

1,621

1,356

n/a

8,110

n/a

−426

4,534

1940

43,538

25,951

11,488

1,704

1,511

n/a

8,215

n/a

−54

17,617

1941

41,380

28,536

721

1,840

2,588

n/a

8,430

141

n/a

−4

571

1942

52,663

32,051

−1,568

1,746

4,826

n/a

8,669

198

n/a

3,554

1943

69,306

35,794

23,768

2,416

5,336

n/a

8,911

245

n/a

135

40,327

1944

104,392

39,659

3,222

2,296

7,220

n/a

9,500

327

n/a

201

48,410

1945

142,210

41,666

−830

2,341

4,710

n/a

10,183

248

n/a

262

81,970

1946

150,385

50,493

−626

2,260

4,482

n/a

10,962

n/a

81,467

1947

158,656

58,191

1,973

2,640

4,562

n/a

11,523

75,284

8,366

1948

304,161

64,280

−34,318

3,244

5,186

n/a

11,920

n/a

166,690

n/a

18,523

n/a

(continued)

Statistical Tables 211

Table G.10—continued
Transferred
to/from
surplus
Consumer Other
and
compreTransferred
Financial
Dividends
change in
Protection hensive
Interest on to/from
paid
accumu4
income
Costs of Bureau
Statutory Federal surplus
lated
3
currency and Office (loss)
transfers Reserve
other
of
notes
compreFinancial
hensive
2
Research
income5

Assessments by the
Board of Governors
Federal
Reserve
Bank
and
period

Current
income

Net
additions
Net
or
expenses
Board
deductions
expendi1
(−)
tures

Distributions to the
U.S. Treasury

1949

316,537

67,931

−12,122

3,243

6,304

n/a

12,329

n/a

193,146

n/a

21,462

1950

275,839

69,822

36,294

3,434

7,316

n/a

13,083

n/a

196,629

n/a

21,849

1951

394,656

83,793

−2,128

4,095

7,581

n/a

13,865

n/a

254,874

n/a

28,321

1952

456,060

92,051

1,584

4,122

8,521

n/a

14,682

n/a

291,935

n/a

46,334

1953

513,037

98,493

−1,059

4,100

10,922

n/a

15,558

n/a

342,568

n/a

40,337

1954

438,486

99,068

−134

4,175

6,490

n/a

16,442

n/a

276,289

n/a

35,888

1955

412,488

101,159

−265

4,194

4,707

n/a

17,712

n/a

251,741

n/a

32,710

1956

595,649

110,240

−23

5,340

5,603

n/a

18,905

n/a

401,556

n/a

53,983

1957

763,348

117,932

−7,141

7,508

6,374

n/a

20,081

n/a

542,708

n/a

61,604

1958

742,068

125,831

124

5,917

5,973

n/a

21,197

n/a

524,059

n/a

59,215

1959

886,226

131,848

98,247

6,471

6,384

n/a

22,722

n/a

910,650

n/a

−93,601

1960

1,103,385

139,894

13,875

6,534

7,455

n/a

23,948

n/a

896,816

n/a

42,613

1961

941,648

148,254

3,482

6,265

6,756

n/a

25,570

n/a

687,393

n/a

70,892

1962

1,048,508

161,451

−56

6,655

8,030

n/a

27,412

n/a

799,366

n/a

45,538

1963

1,151,120

169,638

615

7,573

10,063

n/a

28,912

n/a

879,685

n/a

55,864

1964

1,343,747

171,511

726

8,655

17,230

n/a

30,782

n/a

1,582,119

n/a

−465,823

1965

1,559,484

172,111

1,022

8,576

23,603

n/a

32,352

n/a

1,296,810

n/a

27,054

1966

1,908,500

178,212

996

9,022

20,167

n/a

33,696

n/a

1,649,455

n/a

18,944

1967

2,190,404

190,561

2,094

10,770

18,790

n/a

35,027

n/a

1,907,498

n/a

29,851

1968

2,764,446

207,678

8,520

14,198

20,474

n/a

36,959

n/a

2,463,629

n/a

30,027

1969

3,373,361

237,828

−558

15,020

22,126

n/a

39,237

n/a

3,019,161

n/a

39,432

1970

3,877,218

276,572

11,442

21,228

23,574

n/a

41,137

n/a

3,493,571

n/a

32,580

1971

3,723,370

319,608

94,266

32,634

24,943

n/a

43,488

n/a

3,356,560

n/a

40,403

1972

3,792,335

347,917

−49,616

35,234

31,455

n/a

46,184

n/a

3,231,268

n/a

50,661

1973

5,016,769

416,879

−80,653

44,412

33,826

n/a

49,140

n/a

4,340,680

n/a

51,178

1974

6,280,091

476,235

−78,487

41,117

30,190

n/a

52,580

n/a

5,549,999

n/a

51,483

1975

6,257,937

514,359

−202,370

33,577

37,130

n/a

54,610

n/a

5,382,064

n/a

33,828

1976

6,623,220

558,129

7,311

41,828

48,819

n/a

57,351

n/a

5,870,463

n/a

53,940

1977

6,891,317

568,851

−177,033

47,366

55,008

n/a

60,182

n/a

5,937,148

n/a

45,728

1978

8,455,309

592,558

−633,123

53,322

60,059

n/a

63,280

n/a

7,005,779

n/a

47,268

1979

10,310,148

625,168

−151,148

50,530

68,391

n/a

67,194

n/a

9,278,576

n/a

69,141

1980

12,802,319

718,033

−115,386

62,231

73,124

n/a

70,355

n/a

11,706,370

n/a

56,821

1981

15,508,350

814,190

−372,879

63,163

82,924

n/a

74,574

n/a

14,023,723

n/a

76,897

1982

16,517,385

926,034

−68,833

61,813

98,441

n/a

79,352

n/a

15,204,591

n/a

78,320

1983

16,068,362

1,023,678

−400,366

71,551

152,135

n/a

85,152

n/a

14,228,816

n/a

106,663

1984

18,068,821

1,102,444

−412,943

82,116

162,606

n/a

92,620

n/a

16,054,095

n/a

161,996

(continued)

212 109th Annual Report | 2022

Assessments by the
Board of Governors
Federal
Reserve
Bank
and
period

Current
income

Net
additions
Net
or
expenses
Board
deductions
expendi1
(−)
tures

Distributions to the
U.S. Treasury

1985

18,131,983

1,127,744

1,301,624

77,378

173,739

n/a

103,029

n/a

17,796,464

n/a

1986

17,464,528

1,156,868

1,975,893

97,338

180,780

n/a

109,588

n/a

17,803,895

n/a

91,954

1987

17,633,012

1,146,911

1,796,594

81,870

170,675

n/a

117,499

n/a

17,738,880

n/a

173,771

1988

19,526,431

1,205,960

−516,910

84,411

164,245

n/a

125,616

n/a

17,364,319

n/a

64,971

1989

22,249,276

1,332,161

1,254,613

89,580

175,044

n/a

129,885

n/a

21,646,417

n/a

130,802

1990

23,476,604

1,349,726

2,099,328

103,752

193,007

n/a

140,758

n/a

23,608,398

n/a

180,292

1991

22,553,002

1,429,322

405,729

109,631

261,316

n/a

152,553

n/a

20,777,552

n/a

228,356

1992

20,235,028

1,474,531

−987,788

128,955

295,401

n/a

171,763

n/a

16,774,477

n/a

402,114

1993

18,914,251

1,657,800

−230,268

140,466

355,947

n/a

195,422

n/a

15,986,765

n/a

347,583

1994

20,910,742

1,795,328

2,363,862

146,866

368,187

n/a

212,090

n/a

20,470,011

n/a

282,122

1995

25,395,148

1,818,416

857,788

161,348

370,203

n/a

230,527

n/a

23,389,367

n/a

283,075

1996

25,164,303

1,947,861

−1,676,716

162,642

402,517

n/a

255,884

5,517,716

14,565,624

n/a

635,343

1997

26,917,213

1,976,453

−2,611,570

174,407

364,454

n/a

299,652

20,658,972

n/a

831,705

1998

28,149,477

1,833,436

1,906,037

178,009

408,544

n/a

343,014

17,785,942

8,774,994

n/a

731,575

1999

29,346,836

1,852,162

−533,557

213,790

484,959

n/a

373,579

n/a

25,409,736

n/a

479,053

2000

33,963,992

1,971,688

−1,500,027

188,067

435,838

n/a

409,614

n/a

25,343,892

n/a

4,114,865

2001

31,870,721

2,084,708

−1,117,435

295,056

338,537

n/a

428,183

n/a

27,089,222

n/a

517,580

2002

26,760,113

2,227,078

2,149,328

205,111

429,568

n/a

483,596

n/a

24,495,490

n/a

1,068,598

2003

23,792,725

2,462,658

2,481,127

297,020

508,144

n/a

517,705

n/a

22,021,528

n/a

466,796

2004

23,539,942

2,238,705

917,870

272,331

503,784

n/a

582,402

n/a

18,078,003

n/a

2,782,587

2005

30,729,357

2,889,544

−3,576,903

265,742

477,087

n/a

780,863

n/a

21,467,545

n/a

1,271,672

2006

38,410,427

3,263,844

−158,846

301,014

491,962

n/a

871,255

n/a

29,051,678

n/a

4,271,828

2007

42,576,025

3,510,206

198,417

296,125

576,306

n/a

324,481

992,353

n/a

34,598,401

n/a

3,125,533

2008

41,045,582

4,870,374

3,340,628

352,291

500,372

n/a

−3,158,808

1,189,626

n/a

31,688,688

n/a

2,626,053

2009

54,463,121

5,978,795

4,820,204

386,400

502,044

n/a

1,006,813

1,428,202

n/a

47,430,237

n/a

4,564,460

2010

79,300,937

6,270,420

9,745,562

422,200

622,846

42,286

45,881

1,582,785

n/a

79,268,124

n/a

883,724

2011

85,241,366

7,316,643

2,015,991

472,300

648,798

281,712

−1,161,848

1,577,284

n/a

75,423,597

n/a

375,175

2012

81,586,102

7,798,353

18,380,835

490,001

722,301

387,279

−52,611

1,637,934

n/a

88,417,936

n/a

460,528

2013

91,149,953

9,134,656

−1,029,750

580,000

701,522

563,200

2,288,811

1,649,277

n/a

79,633,271

n/a

147,088

2014

116,561,512 10,714,872

−2,718,283

590,000

710,807

563,000

−1,611,569

1,685,826

n/a

96,901,695

n/a

1,064,952

2015

114,233,676 11,139,956

−1,305,513

705,000

689,288

489,700

366,145

1,742,745

25,955,921

91,143,493

n/a

−18,571,798

2016

111,743,998 17,262,620

−114,255

709,000

700,728

596,200

−183,232

711,423

91,466,545

n/a

2017

114,193,573 33,397,138

1,932,579

740,000

723,534

573,000

650,808

783,599

80,559,689

n/a

2018

112,861,657 47,353,636

−382,959

838,000

848,807

337,100

41,831

998,703

65,319,280

n/a

−3,175,000

2019

103,220,435 45,423,825

−169,458

814,000

836,975

518,600

148,923

713,931

54,892,569

n/a

2020

102,036,168 13,454,957

2,266,152

947,000

831,133

517,300

−1,275,509

386,312

86,890,110

n/a

155,253

(continued)

Statistical Tables 213

Assessments by the
Board of Governors
Federal
Reserve
Bank
and
period

Current
income

Net
additions
Net
or
expenses
Board
deductions
expendi1
(−)
tures

Distributions to the
U.S. Treasury

2021

123,058,495 11,007,927 −1,489,296

970,000

1,035,105

627,500

1,639,423

2022

170,683,732 107,849,830 −1,207,343

1,015,000

1,053,616

722,200

1,818,927

Total
1914–2022 2,254,845,973 395,831,462 38,325,309

15,032,118

20,536,193

6,219,077

888,467

295,253

653,479

1,052,292

276,392

41,149

1,210,606

44,842,511

135

500,293

1,067,369,651 198,568,747 27,119,791

4,458,819

5,172,239

2,028,121

86,164

7,897,847 326,527,894 545,077,826

−433

4,844,653
410,218

583,417 109,024,672

n/a

−40,000

n/a

27,611,295 617,668,313 1,198,433,402

−4

12,727,3896

1,209,101

59,445,569

Aggregate for each Bank, 1914–2022
Boston
New York

73,878,101 11,549,390

14,143,542

Philadelphia

66,814,100 11,405,414

730,993

842,836

920,212

350,793

58,338

1,835,953

15,530,033

36,308,189

291

Cleveland

89,682,974 12,449,161

519,960

1,177,183

1,197,252

507,582

73,759

2,091,809

22,292,764

49,612,575

−10

941,444

Richmond

160,227,714 29,019,362

1,921,039

2,934,041

1,769,040

1,315,121

184,509

5,548,570

37,997,029

81,295,580

−72

2,474,693

Atlanta

148,864,392 23,361,371

1,682,019

918,702

2,394,858

329,514

111,498

1,745,118

45,767,940

75,616,315

553,867

Chicago

172,110,146 28,057,214

1,835,672

894,241

2,039,111

215,339

75,894

1,599,100

30,754,944 109,806,844

652,529

St. Louis

49,519,469

6,935,086

389,153

249,470

702,317

81,051

60,877

449,342

10,126,010

31,149,772

−27

258,580

Minneapolis

27,453,718

6,102,614

418,286

230,166

400,467

36,837

61,786

483,249

5,043,377

15,436,029

196,397

Kansas City

54,532,388

9,406,057

566,686

251,428

709,968

63,603

18,177

479,056

9,536,022

34,476,668

−9

192,598

Dallas

94,535,816 14,876,219

1,082,174

380,947

1,365,982

99,663

75,388

697,179

28,072,498

49,889,286

269,109

249,857,494 44,100,829

1,764,284

2,040,809

2,812,453

915,068

40,929

71,876,263 124,921,807

−17

1,433,011

2,254,845,973 395,831,462 38,325,309

15,032,118

20,536,193

6,219,077

888,467

27,611,295 617,668,313 1,198,433,402

−4

12,727,389

San
Francisco
Total

3,573,465

Note: Components may not sum to totals because of rounding.
1
For 1987 and subsequent years, includes the cost of services provided to the Treasury by Federal Reserve Banks for which reimbursement was not
received.
2
Starting in 2010, as required under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, the Board of Governors began
assessing the Reserve Banks to fund the operations of the Consumer Financial Protection Bureau and, for a two-year period beginning July 21,
2010, the Office of Financial Research. These assessments are allocated to the Reserve Banks based on each Reserve Bank’s capital and surplus
balances as of the most recent quarter.
3
Represents transfers made as a franchise tax from 1917 through 1932; transfers made under section 13b of the Federal Reserve Act from 1935
through 1947; transfers made under section 7 of the Federal Reserve Act for 1996, 1997, and 2015 to present. Starting in 2022, represents earnings remittances to the Treasury, net of the deferred asset change.
4
Transfers made under section 13b of the Federal Reserve Act.
5
Transfers made under section 7 of the Federal Reserve Act. Beginning in 2006, accumulated other comprehensive income is reported as a component of surplus.
6
The $12,727,389 thousand transferred to surplus was reduced by direct charges of $500 thousand for charge-off on Bank premises (1927);
$139,300 thousand for contributions to capital of the Federal Deposit Insurance Corporation (1934); $4 thousand net upon elimination of section
13b surplus (1958); $106,000 thousand (1996), $107,000 thousand (1997), and $3,752,000 thousand (2000) transferred to the Treasury as
statutorily required; and $1,848,716 thousand related to the implementation of SFAS No. 158 (2006) and was increased by a transfer of $11,131
thousand from reserves for contingencies (1955), leaving a balance of $6,785,000 thousand on December 31, 2021.
n/a Not applicable.

214 109th Annual Report | 2022

Table G.11. Operations in principal departments of the Federal Reserve Banks, 2019–22
Operation

2022

2021

2020

2019

Millions of pieces
Currency processed

29,695

Currency destroyed
Coin received

28,172

26,596

33,042

3,884

1,351

2,044

5,141

31,932

30,370

33,994

56,101

131

Checks handled
U.S. government checks1
Postal money orders
Commercial
Securities transfers2

3,400

3,657

3,767

4,389

196

204

184

168

Commercial

18,645

17,895

16,549

15,584

Government

1,661

1,959

1,878

1,704

Currency processed

707,947

657,495

561,278

665,246

Currency destroyed

83,929

20,445

30,560

84,323

2,770

2,811

3,294

5,408

220,813

272,637

205,905

149,337

19,467

20,161

20,558

21,412

Funds transfers3
Automated clearinghouse transactions

Millions of dollars

Coin received
Checks handled
U.S. government checks1
Postal money orders
Commercial

8,947,734

8,757,539

7,874,721

8,317,894

341,806,733

310,827,220

361,728,932

345,813,248

1,060,257,294

991,810,545

840,483,038

695,835,129

Commercial

38,685,527

31,446,232

28,081,631

Government

7,890,609

8,118,875

6,852,715

5,787,018

Securities transfers2
Funds transfers3
Automated clearinghouse transactions

1
2
3

Includes government checks handled electronically (electronic checks).
Data on securities transfers do not include reversals.
Data on funds transfers do not include non-value transfers.

Statistical Tables 215

Table G.12. Number and annual salaries of officers and employees of the Federal Reserve Banks, December
31, 2022
Other officers1

President
Federal Reserve Bank
(including branches)

Number

Annual
salary
(dollars)

Number

Employees
Number

Annual
salaries
(dollars)2

Full
time

Part
time3

Temporary/
hourly4

Total
Annual
salaries
(dollars)2, 4

Number5

Annual
salaries
(dollars)

Boston

462,365

116

33,476,988

1,138

156,243,265

1,273

190,182,618

New York

528,800

594

174,556,547

2,360

352,262,417

2,971

527,347,764

Philadelphia

461,600

18,850,500

783

90,500,343

878

109,812,443

Cleveland

454,600

23,611,700

994

108,991,556

1,148

133,057,856

Richmond

430,500

107

25,346,600

1,465

160,574,323

1,585

186,351,423

Atlanta

443,100

119

29,567,200

1,564

119

172,110,272

1,814

202,120,572

Chicago

477,900

163

43,303,305

1,496

188,207,286

1,679

231,988,491

St. Louis

428,800

113

29,083,200

1,321

144,301,389

1,459

173,813,389

Minneapolis

461,700

16,344,974

961

101,603,005

1,082

118,409,679

Kansas City

429,000

120

26,904,800

2,041

189,529,039

2,183

216,862,839

Dallas

440,600

19,478,060

1,200

126,300,123

1,303

146,218,783

San Francisco

512,300

135

37,782,260

1,743

223,471,931

1,913

261,766,491

Federal Reserve
Information Technology

n/a

22,813,400

1,615

219,790,937

1,712

242,604,337

Office of
Employee Benefits

n/a

4,773,600

6,600,120

11,373,720

5,531,265

1,884

505,893,134 18,724

177

263

2,240,486,006

21,060

2,751,910,404

Total

Note: Components may not sum to totals because of rounding.
1
Number and Annual Salaries columns include the first vice president but exclude the president.
2
Annual salaries include shift differentials and premium pay. Shift differentials and premium pay should be calculated as follows:
12/31/22 salary percent shift differential or percent premium pay. Neither the shift differential nor premium pay amount should be derived from
actual expenses.
3
Part-time employees are those who regularly work less than a full shift each day or regularly work less than a full week. The annual salary rate for
part-time employees can be estimated. (Example: $150 per 20-hour workweek times 52 weeks = $7,800 annual salary.)
4
Provide the cumulative salary earned for active temporary/hourly employees for the year ending 12/31/22.
5
Total Number column should include the president in the total count.
n/a Not applicable.

216 109th Annual Report | 2022

Table G.13. Acquisition costs and net book value of the premises of the Federal Reserve Banks and
Branches, December 31, 2022
Thousands of dollars

Federal Reserve
Bank or Branch

Acquisition costs
Land

Buildings
(including vaults)1

Total

Net book value

Other real estate

Boston

27,293

233,855

261,148

95,781

n/a

New York

68,694

658,467

727,161

376,609

n/a

Philadelphia

8,146

175,204

183,350

80,026

n/a

Cleveland

4,219

170,608

174,827

89,759

n/a

4,877

34,091

38,968

10,187

n/a

32,524

207,746

240,270

100,425

n/a

7,916

45,984

53,900

22,324

n/a

Cincinnati
Richmond
Baltimore
Charlotte

7,885

47,197

55,082

24,556

n/a

25,669

166,308

191,977

114,008

n/a

Birmingham

5,347

13,646

18,993

9,515

n/a

Jacksonville

2,185

28,452

30,637

12,316

n/a

New Orleans

3,785

17,512

21,297

8,534

n/a

Miami

4,884

45,621

50,505

23,235

n/a

Atlanta

Chicago

7,459

288,495

295,954

119,480

n/a

Detroit

13,812

76,379

90,191

60,262

n/a

St. Louis

9,467

156,055

165,522

75,577

n/a

Memphis

2,472

25,690

28,162

9,438

n/a

Minneapolis

28,199

123,878

152,077

86,155

n/a

Helena

3,316

10,431

13,747

6,030

n/a

Kansas City

38,986

222,037

261,023

188,539

n/a

Denver

4,966

19,624

24,590

13,322

n/a

Omaha

5,282

15,159

20,441

12,014

n/a

37,959

167,052

205,011

112,282

n/a

263

6,222

6,485

1,223

n/a

Dallas
El Paso
Houston

32,969

106,990

139,959

95,847

n/a

San Francisco

20,988

157,204

178,192

69,674

n/a

Los Angeles

5,217

81,124

86,341

35,657

n/a

Salt Lake City

1,294

6,936

8,230

2,196

n/a

Seattle

13,101

50,512

63,613

44,481

n/a

Phoenix

1,089

15,722

16,811

9,673

n/a

430,263

3,374,201

3,804,464

1,909,125

n/a

Total
1

Includes expenditures for construction at some offices, pending allocation to appropriate accounts.
n/a Not applicable.

Find other Federal Reserve Board publications (www.federalreserve.gov/publications.htm) or order
those offered in print (www.federalreserve.gov/files/orderform.pdf) on our website. Also visit the site for more
information about the Board and to learn how to stay connected with us on social media.

Full text of Annual Report of the Board of Governors of the Federal Reserve System : 2022

FRASER