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REPORT TO CONGRESS

110th

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

2023

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 2024 Summary ...................................................................................................... 3
June 2023 Summary ........................................................................................................ 9

3 Financial Stability ..................................................................................................... 15
Monitoring Financial Vulnerabilities .................................................................................. 16
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 .......................................................... 63
Evolutions and Improvements to the System ..................................................................... 66
Oversight of Federal Reserve Banks ................................................................................. 69
Pro Forma Financial Statements for Federal Reserve Priced Services ................................. 76

6 Consumer and Community Affairs ......................................................................... 83
Consumer Compliance Supervision .................................................................................. 83
Consumer Laws and Regulations ..................................................................................... 95
Consumer Research and Analysis of Emerging Issues and Policy ........................................ 96
Community Development ................................................................................................. 99

Appendixes
A Federal Reserve System Organization ................................................................ 103
Board of Governors ....................................................................................................... 103
Federal Open Market Committee .................................................................................... 111
Board of Governors Advisory Councils ............................................................................ 113
Federal Reserve Banks and Branches ............................................................................ 117

B Minutes of Federal Open Market Committee Meetings .................................. 141
Meeting Minutes .......................................................................................................... 141

C Federal Reserve System Audits ........................................................................... 143
Office of Inspector General Activities .............................................................................. 143
Government Accountability Office Reviews ...................................................................... 145

D Federal Reserve System Budgets ....................................................................... 147
System Budgets Overview ............................................................................................. 147

110th Annual Report | 2023

Board of Governors Budgets .......................................................................................... 151
Federal Reserve Banks Budgets .................................................................................... 157
Currency Budget ........................................................................................................... 163

E Record of Policy Actions of the Board of Governors ........................................ 169
Rules and Regulations .................................................................................................. 169
Policy Statements and Other Actions .............................................................................. 171
Discount Rates for Depository Institutions in 2023 ......................................................... 175
The Board of Governors and the Government Performance and Results Act ....................... 178

F Litigation .................................................................................................................. 179
Pending ....................................................................................................................... 179
Resolved ...................................................................................................................... 180

G Statistical Tables .................................................................................................... 181

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 2023 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

110th Annual Report | 2023

sumers, protect consumer rights, and ensure that Board policies and research take consumer
and community perspectives into account.
Additional information for calendar-year 2023 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 2023 by providing excerpts and select figures from the Monetary
Policy Report published in March 2024 and June 2023.1 The report, submitted semiannually to the
Congress, is delivered concurrently with testimony from the Federal Reserve Board Chair.2

March 2024 Summary
While inflation remains above the Federal Open Market Committee’s (FOMC) objective of 2 percent, it
has eased substantially over the past year, and the slowing in inflation has occurred without a significant increase in unemployment. The labor market remains relatively tight, with the unemployment rate
near historically low levels and job vacancies still elevated. Real gross domestic product (GDP) growth
has also been strong, supported by solid increases in consumer spending.
The FOMC has maintained the target range for the federal funds rate at 5¼ to 5½ percent since
its July 2023 meeting. The Committee views the policy rate as likely at its peak for this tightening
cycle, which began in early 2022. The Federal Reserve has also continued to reduce its holdings
of Treasury and agency mortgage-backed securities.
As labor market tightness has eased and progress on inflation has continued, the risks to achieving the
Committee’s employment and inflation goals have been moving into better balance. Even so, the Committee remains highly attentive to inflation risks and is acutely aware that high inflation imposes significant hardship, especially on those least able to meet the higher costs of essentials.
The FOMC is strongly committed to returning inflation to its 2 percent objective. In considering any
adjustments to the target range for the federal funds rate, the Committee will carefully assess
incoming data, the evolving outlook, and the balance of risks. The Committee does not expect it
will be appropriate to reduce the target range until it has gained greater confidence that inflation is
moving sustainably toward 2 percent.

Those complete reports are available on the Board’s website at https://www.federalreserve.gov/publications/files/
20240301_mprfullreport.pdf (March 2024) and https://www.federalreserve.gov/monetarypolicy/files/
20230616_mprfullreport.pdf (June 2023).
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.”

110th Annual Report | 2023

Recent Economic and Financial Developments
Inflation. Consumer price inflation has slowed notably but remains above 2 percent. The price
index for personal consumption expenditures (PCE) rose 2.4 percent over the 12 months ending in
January, down from a peak of 7.1 percent in 2022. The core PCE price index—which excludes
volatile food and energy prices and is generFigure 2.1. Personal consumption expenditures
price indexes

ally considered a better guide to the direction
of future inflation—rose 2.8 percent in the
12 months ending in January, and the slowing

Monthly

Percent change from year earlier
Trimmed mean
Excluding food and energy
Total

in inflation was widespread across both goods

and services prices (figure 2.1). More recently,

core PCE prices increased at an annual rate of

2.5 percent over the six months ending in

4
3

January, though measuring inflation over rela-

tively short periods risks exaggerating the

influence of idiosyncratic or temporary factors.

Measures of longer-term inflation expectations
are within the range of values seen in the

2017 2018 2019 2020 2021 2022 2023 2024

decade before the pandemic and continue to

Note: Trimmed mean data extend through
December 2023. All other data extend through
January 2024.

be broadly consistent with the FOMC’s

Source: For trimmed mean, Federal Reserve Bank of
Dallas; for all else, Bureau of Economic Analysis; all
via Haver Analytics.

longer-run objective of 2 percent.
The labor market. The labor market has
remained relatively tight, with job gains averaging 239,000 per month since June and the

Figure 2.2. Nonfarm payroll employment

unemployment rate near historical lows
(figure 2.2). Labor demand has eased—as job

Monthly

Thousands of jobs

openings have declined in many sectors of the

800

economy—but continues to exceed the supply

700

of available workers (figure 2.3). Labor supply

600
500

has trended higher over the past year,

400

reflecting a continued strong pace of immigra-

300

tion and increases in the labor force participa-

200

tion rate, particularly among prime-age

100
2021

2022

2023

2024

Note: The data shown are a 3-month moving average
of the change in nonfarm payroll employment and
extend through January 2024.
Source: Bureau of Labor Statistics via Haver Analytics.

workers. Reflecting the improved balance
between labor demand and supply, nominal
wage gains slowed in 2023, but they remain
above a pace consistent with 2 percent inflation over the 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
2006

2008

2010

2012

2014

2016

2018

2020

2022

2024

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 2024.
Source: Bureau of Labor Statistics via Haver Analytics.

Economic activity. Real GDP increased 3.1 percent last year, notably faster than in 2022 despite
tighter financial conditions, including elevated longer-term interest rates. Consumer spending grew
at a solid pace, and housing market activity started to turn back up in the second half of last year
after having declined since early 2021. However, real business fixed investment growth slowed,
likely reflecting tighter financial conditions and downbeat business sentiment. In contrast to GDP,
manufacturing output was little changed, on net, last year, a downshift following two years of
robust post-pandemic gains.
Financial conditions. Conditions in financial markets tightened considerably further over the
summer and early fall before reversing course toward the end of the year. The FOMC raised the
target range for the federal funds rate a further 25 basis points at its meeting last July, bringing
the overall increase in the target range for this tightening cycle to 525 basis points. The marketimplied expected path of the federal funds rate has moved up, on net, since the middle of 2023,
and yields on longer-term nominal Treasury securities are notably higher on balance. Credit
remains generally available to most households and businesses but at elevated interest rates,
which have weighed on financing activity. Lending by banks to households and businesses slowed
notably since June as banks continued to tighten standards and demand for loans softened.

110th Annual Report | 2023

Financial stability. Overall, the banking system remains sound and resilient; although acute stress
in the banking system has receded since last March, a few areas of risk warrant continued monitoring. Upward pressure on asset valuations continued, with real estate prices elevated relative to
rents and high price-to-earnings ratios in equity markets. Borrowing from nonfinancial businesses
and households continued to increase at a pace slower than that of nominal GDP, and the combined debt-to-GDP ratio now sits close to its 20-year low. Vulnerabilities from financial-sector
leverage remain notable. While risk-based bank capital ratios stayed solid and increased broadly,
declines in the fair values of fixed-rate assets have been sizable relative to the regulatory capital
at some banks. Meanwhile, leverage at hedge funds has stabilized at high levels, and leverage at
life insurers increased to values close to the historical averages but with a liability composition
that has become more reliant on nontraditional sources of funding. Most banks maintained high
liquidity and stable funding, while bank funding costs continue to increase. (See the box “Developments Related to Financial Stability” on pages 27–28 of the March 2024 Monetary Policy Report.)
International developments. Following a rebound in early 2023, growth in foreign economic
activity was subdued in the second half of last year. Economic growth was particularly weak in
advanced foreign economies (AFEs) as monetary policy tightening weighed on activity and high
inflation eroded real household incomes. Structural adjustment to higher energy prices in Europe
continued to hinder economic performance, while property-sector weakness and sluggish domestic
demand restrained Chinese economic activity. Foreign headline inflation has fallen further,
reflecting declines in core and food inflation. However, the pace of disinflation has varied across
countries and sectors, with the moderation in goods inflation generally outpacing that in services
inflation.
Most foreign central banks paused policy interest rate hikes in the second half of last year and
have since held rates steady. Policy rate paths implied by financial market pricing suggest that
central banks in many AFEs are expected to begin lowering their policy rates in 2024. Several central banks in emerging market economies have already begun easing monetary policy. The tradeweighted exchange value of the U.S. dollar has increased slightly, on net, since the middle of
last year.

Monetary Policy
Interest rate policy. After significantly tightening the stance of monetary policy since early 2022,
the FOMC has maintained the target range for the policy rate at 5¼ to 5½ percent since its
meeting last July (figure 2.4). Although the FOMC judges that the risks to achieving its employment
and inflation goals are moving into better balance, the Committee remains highly attentive to inflation risks. The Committee has indicated that it does not expect it will be appropriate to reduce the
target range until it has gained greater confidence that inflation is moving sustainably toward

Monetary Policy and Economic Developments

Figure 2.4. Selected interest rates

Daily

Percent
6
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 2024
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 27, 2024.
Source: Department of the Treasury; Federal Reserve Board.

2 percent. In considering any adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks.
Balance sheet policy. The Federal Reserve has continued the process of significantly reducing its
holdings of Treasury and agency securities in a predictable manner, contributing to the tightening
of financial conditions.3 Beginning in June 2022, principal payments from securities held in the
System Open Market Account have been reinvested only to the extent that they exceeded monthly
caps. Under this policy, the Federal Reserve has reduced its securities holdings about $640 billion
since mid-June 2023, bringing the total reduction in securities holdings since the start of balance
sheet runoff to about $1.4 trillion. The FOMC has stated that it intends to maintain securities
holdings at amounts consistent with implementing monetary policy efficiently and effectively in its
ample-reserves regime. To ensure a smooth transition, the FOMC intends to slow and then stop
reductions in its securities holdings when reserve balances are somewhat above the level that the
FOMC judges to be consistent with ample reserves.

Special Topics
Employment and earnings across groups. An exceptionally tight labor market over the past two
years has been especially beneficial for historically disadvantaged groups of workers. As a result,
many of the long-standing disparities in employment and wages by sex, race, ethnicity, and education have narrowed, and some gaps reached historical lows in 2023. However, despite this nar3

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.

110th Annual Report | 2023

rowing, significant disparities in absolute levels across groups remain. (See the box “Employment
and Earnings across Demographic Groups” on pages 10–12 of the March 2024 Monetary Policy
Report.)
Housing sector. The rise in mortgage rates over the past two years has reduced housing demand,
resulting in a steep drop in housing activity in 2022 and a marked slowing in house price growth
from its historically high pace. Offsetting factors boosting housing demand, such as the robust job
market and the increased prevalence of remote work, have prevented significant price declines.
High mortgage rates have also discouraged some potential sellers with low rates on their current
mortgages from moving, which has kept the existing home market unusually thin. The shortage of
available existing homes has pushed some remaining homebuyers toward new homes and supported a modest rebound in construction of single-family homes later in 2023. In contrast, multifamily starts rose to historically high levels in 2022 but have more recently fallen back because of
builders’ concerns about the effect of the significant amount of new multifamily supply on rents
and property prices. (See the box “Recent Housing Market Developments” on pages 19–21 of the
March 2024 Monetary Policy Report.)
Federal Reserve’s balance sheet and money markets. The size of the Federal Reserve’s balance
sheet has decreased since June as the FOMC continued to reduce its securities holdings. Despite
ongoing balance sheet runoff, reserve balances—the largest liability on the Federal Reserve’s balance sheet—edged up as declines in the usage of the overnight reverse repurchase agreement
facility—another Federal Reserve liability—more than matched the decline in assets. (See the box
“Developments in the Federal Reserve’s Balance Sheet and Money Markets” on pages 38–40 of
the March 2024 Monetary Policy Report.)
Monetary policy rules. Simple monetary policy rules, which prescribe a setting for the policy
interest rate in response to the behavior of a small number of economic variables, can provide
useful guidance to policymakers. With inflation easing and supply and demand conditions in labor
markets coming into better balance, the policy rate prescriptions of most simple monetary policy
rules have decreased recently and now call for levels of the federal funds rate that are close to
the current target range for the federal funds rate. (See the box “Monetary Policy Rules in the Current Environment” on pages 41–43 of the March 2024 Monetary Policy Report.)

Monetary Policy and Economic Developments

June 2023 Summary
Although inflation has moderated somewhat since the middle of last year, it remains well above
the Federal Open Market Committee’s (FOMC) objective of 2 percent. The labor market continues
to be very tight, with robust job gains and the unemployment rate near historically low levels,
though nominal wage growth has shown some signs of easing and job vacancies have declined.
Real gross domestic product (GDP) growth was modest in the first quarter, despite a pickup in consumer spending. 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 increase interest rates and reduce its securities holdings. The FOMC has raised the target range for the federal funds rate a further 75 basis
points since the start of the year, bringing the range to 5 to 5¼ percent. In determining the extent
of additional policy firming that may be appropriate to return inflation to 2 percent over time, the
FOMC indicated that it will take into account the cumulative tightening of monetary policy, the lags
with which monetary policy affects economic activity and inflation, and economic and financial
developments. The Federal Reserve also continued to reduce its holdings of Treasury and agency
mortgage-backed securities; these holdings have declined by about $420 billion since January, 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 FOMC is strongly committed to
returning inflation to its 2 percent objective.

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 4.4 percent in April, down from its peak of
7.0 percent last June but still well above the FOMC’s 2 percent objective. Core PCE price
inflation—which excludes volatile food and energy prices and is generally considered a better
guide to the direction of future inflation—is also off its peak but was still 4.7 percent over the
12 months ending in April. As supply chain bottlenecks have eased and demand has stabilized,
increases in core goods prices slowed considerably over the past year. Within core services prices,
housing services inflation has been high, but the monthly changes have started to ease in recent
months, consistent with the slower increases in rents for new tenants that have been observed
since the second half of last year. For other core services, price inflation remains elevated and has
not shown signs of easing, and prospects for slowing inflation may depend in part on a further
easing of tight labor market conditions. Measures of longer-term inflation expectations are within
the range of values seen in the decade before the pandemic and continue to be broadly consis-

110th Annual Report | 2023

tent with the FOMC’s longer-run objective of 2 percent, suggesting that high inflation is not
becoming entrenched.
The labor market. The labor market has remained very tight, with job gains averaging 314,000 per
month during the first five months of the year and the unemployment rate remaining near historical lows. Labor demand has eased in many sectors of the economy but continues to exceed
the supply of available workers, with job vacancies still elevated. Labor supply has improved, with
a pickup in immigration and an improvement in the labor force participation rate, particularly
among prime-age workers. Nominal wage gains continued to slow in the first half of 2023, but they
remain above the pace consistent with 2 percent inflation over the longer term, given prevailing
trends in productivity growth.
Economic activity. After the strong rebound in 2021 from the pandemic-induced recession, economic activity lost momentum last year, and growth in the first quarter of this year was modest as
financial conditions continued to tighten. Real consumer spending grew at a solid pace in the first
quarter but appears to be moderating as consumer financing conditions have tightened and consumer confidence has remained low. Real business fixed investment growth continued to slow in
the first quarter, likely reflecting tighter financial conditions and weaker output growth, while manufacturing output has been roughly unchanged so far this year after having declined in the fourth
quarter. Activity in the housing sector continued to contract in response to elevated mortgage
rates, but several indicators appear to have bottomed out.
Financial conditions. Financial conditions have tightened further since January. The FOMC has
raised the target range for the federal funds rate a further 75 basis points since January, and the
market-implied expected path of the federal funds rate over the next year shifted up. Though yields
on longer-term nominal Treasury securities were little changed, on net, over this period, the relatively high level of interest rates has weighed on financing activity. Business loans at banks grew
since the start of 2023, but the pace of growth continued to slow as banks tightened standards
and average borrowing costs rose. Investment-grade corporate bond issuance rebounded to a
brisk pace in May, following a slowdown in March and April. Speculative-grade issuance rebounded
as well but was still subdued by historical standards. While business credit quality remains strong,
some indicators of future business defaults are somewhat elevated. For households, mortgage
originations remained weak, although consumer loans (such as auto loans and credit cards) grew
further. After having risen last year, delinquency rates leveled off in the first quarter for auto loans
and continued to increase for credit card loans.
Financial stability. Despite concerns about profitability at some banks, the banking system
remains sound and resilient. Most measures of valuation pressures in corporate securities markets remained near the middle of their historical distributions. By contrast, valuation pressures in

Monetary Policy and Economic Developments

commercial and residential real estate markets continued to be elevated. Borrowing by households and businesses grew a bit more slowly than GDP, leaving vulnerabilities arising from household and business debt largely unchanged at moderate levels. In the banking sector, heavy reliance on uninsured deposits, declining fair values of long-duration fixed-rate assets associated with
higher interest rates, and poor risk management led to the failure of three domestic banks. Broad
bank equity prices fell sharply as market participants reassessed the strength of some banks with
similar risk profiles to those that failed. However, the broader banking sector maintained substantial loss-absorbing capacity and ample liquidity. In the nonbank financial sector, leverage at hedge
funds remained elevated, and structural vulnerabilities associated with funding risk persisted at
some money market funds and certain mutual funds. (See the box “Developments Related to
Financial Stability” on pages 31–32 of the June 2023 Monetary Policy Report.)
International developments. Following a slowdown at the end of 2022, foreign activity rebounded
early this year. This rebound was driven in part by strong growth in China, as the lifting of
COVID-19 restrictions unleashed pent-up demand, though recent indicators suggest that
momentum is slowing. Europe showed resilience to the energy price shock stemming from Russia’s war against Ukraine. Foreign headline inflation continued to fall, driven by declines in retail
energy prices. However, while energy inflation has moderated in many foreign economies, both
food and core inflation remain elevated.
Since January, several major foreign central banks continued tightening their monetary policies,
communicating concerns about elevated inflation and tight labor markets. That said, some central
banks also emphasized the need to be cautious in their approach, given the lags of monetary
policy and the uncertainty about the outlook for growth and inflation. The trade-weighted exchange
value of the U.S. dollar is a touch lower.

Monetary Policy
In response to high inflation, the FOMC continued to increase the target range for the federal
funds rate and reduce its securities holdings this year. Adjustments to both interest rates and the
balance sheet are playing a role in firming the stance of monetary policy in support of the Federal
Reserve’s maximum-employment and price-stability goals.
Interest rate policy. The FOMC continued to increase the target range for the federal funds rate,
bringing it to the current range of 5 to 5¼ percent. In light of the cumulative tightening of monetary policy and the lags with which monetary policy affects economic activity and inflation, the
FOMC slowed the pace of policy tightening relative to last year. The FOMC will determine meeting
by meeting the extent of additional policy firming that may be appropriate to return inflation to
2 percent over time, based on the totality of incoming data and their implications for the outlook
for economic activity and inflation.

110th Annual Report | 2023

Balance sheet policy. The Federal Reserve has continued the process of significantly reducing its
holdings of Treasury and agency securities in a predictable manner.4 Beginning in June of last year,
principal payments from securities held in the System Open Market Account (SOMA) have been
reinvested only to the extent that they exceeded monthly caps. The Federal Reserve has reduced
its securities holdings by about $420 billion since January. This decrease in assets was partially
offset by liquidity provisions to the banking system following the banking-sector stresses in March.

Special Topics
Employment and earnings across groups. Strong labor demand over the past two years has particularly benefited historically more disadvantaged workers. As a result, many of the disparities in
employment and wages across racial, ethnic, sex, and education groups, which had been exacerbated by the pandemic, have narrowed—in some cases to historically narrow ranges. Despite this
narrowing, there remain significant disparities in absolute levels of employment and wages across
groups. (See the box “Developments in Employment and Earnings across Demographic Groups”
on pages 11–13 of the June 2023 Monetary Policy Report.)
Bank stress and lending. Bank lending conditions have tightened notably over the past year, and
bank loan growth has slowed, following the tightening of monetary policy that started in early
2022. Banking-sector strains in March 2023 reportedly led to further tightening in lending conditions at some banks. Results from the April 2023 Senior Loan Officer Opinion Survey on Bank
Lending Practices show that banks expect to further tighten their lending standards over the
remainder of 2023, with some banks reporting concerns about their liquidity positions, deposit
outflows, and funding costs. Economic research suggests that tighter credit conditions at banks
can have adverse effects on economic activity, but different studies find effects that vary in scope,
magnitude, and timing. In terms of scope, the effects are also likely to differ across borrowers,
economic sectors, and geographic areas, and they may be larger for sectors that depend more
heavily on bank credit, such as the commercial real estate and the small business sectors. (See
the box “Recent Developments in Bank Lending Conditions” on pages 21–23 of the June 2023
Monetary Policy Report.)
Federal Reserve’s balance sheet and money markets. The Federal Reserve continued to reduce
the size of its SOMA portfolio. However, in March, amid banking-sector developments, borrowing
from the discount window increased, and the Federal Reserve implemented a new facility, the
Bank Term Funding Program (BTFP), to make additional funding available to eligible depository
institutions. As a result of Federal Reserve lending through the BTFP, the discount window, and
other credit extensions, the Federal Reserve’s total assets have increased since March. Take-up

Monetary Policy and Economic Developments

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. (See the box
“Developments in the Federal Reserve’s Balance Sheet and Money Markets” on pages 42–43 of
the June 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 FOMC’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 called for elevated levels of the federal funds rate. (See the box “Monetary Policy
Rules in the Current Environment” on pages 44–46 of the June 2023 Monetary Policy Report.)

Financial Stability

The Federal Reserve monitors financial system risks and engages at home and abroad to help
ensure that the system supports a healthy economy for U.S. households, communities, and
businesses.
In order to maintain a resilient financial system, 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 efforts 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
2023, 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; and
3. engaging in domestic and international cooperation and coordination.
Periodically, Federal Reserve Board staff assess potential vulnerabilities relevant for financial
system stability. These monitoring efforts promote financial stability by informing broader policy
discussions and stimulating additional research.
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 and designated financial market utilities is discussed in section 4, “Supervision and Regulation.”

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.

110th Annual Report | 2023

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.

Monitoring Financial Vulnerabilities
This section describes the Federal Reserve’s monitoring of vulnerabilities in the financial system
during 2023.
Financial institutions are linked together through a complex set of relationships, and their resilience depends on the economic condition of households and businesses. In turn, the condition of
households and businesses hinges on the strength of financial institutions’ balance sheets, as
the nonfinancial sector obtains funding through the financial sector. The Federal Reserve’s measures to monitor risks to financial stability are designed to better understand these complex linkages and have been an important part of the Federal Reserve’s efforts to achieve 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.

Financial Stability

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.
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 households and businesses, 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).
Since 2018, the Federal Reserve Board has also published its Financial Stability Report, which
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.2 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 may be an indicator of a
broader buildup in risk-taking. Because it is very difficult to judge whether an asset price is overvalued relative to fundamentals, the Federal Reserve’s analysis of asset valuation pressures typically tracks a broad range of measures, including price volatility, underwriting standards, and
investor flows.
The economy remained strong over the year, and the economic outlook centered on continued
growth. Against this backdrop, valuation pressures across different sectors remained notable.

See Board of Governors of the Federal Reserve System, Financial Stability Report (Washington: Board of Governors,
April 2024), https://www.federalreserve.gov/publications/files/financial-stability-report-20240419.pdf; and Board of
Governors of the Federal Reserve System, Financial Stability Report (Washington: Board of Governors, October 2023),
https://www.federalreserve.gov/publications/files/financial-stability-report-20231020.pdf.

110th Annual Report | 2023

Figure 3.2. Aggregate forward price-to-earnings
ratio of S&P 500 firms, 1989–2023

Equity prices were still high relative to earnings (figure 3.2). In addition, real estate prices
continued to be high relative to fundamentals.

Ratio
Monthly

Dec.

Median

Spreads on corporate bonds and loans ended

2023 at levels below those seen over most of

2022 and 2023 and similar to the levels seen

in the late 2010s (figure 3.3).

18
15
12
9
6

1993 1998 2003 2008 2013 2018 2023
Note: Based on expected earnings for 12 months
ahead. The median value is 15.6.
Source: Federal Reserve Board staff calculations using
Refinitiv, Institutional Brokers’ Estimate System estimates.

Valuation pressures in the residential real
estate sector remained elevated by historical
standards. Despite high borrowing costs and
tightening of lending standards, various house
price indexes showed increases over the year.
The price-to-rent ratio remained at the upper
end of its historical distribution, supported by
a tight inventory of homes for sale.

Figure 3.3. Corporate bond spreads to
similar-maturity Treasury securities,
1997–2023

Commercial real estate (CRE) prices remained
high relative to fundamentals despite the continued decline in prices in most segments.

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

Percentage points

Monthly

1998

2003

2008

24
22
20
Triple-B
18
(left scale)
16
High-yield
14
(right scale)
12
10
8
Dec.
6
4
2
0
2013 2018 2023

Note: The triple-B series reflects the option-adjusted
spread of the ICE Bank of America Merrill Lynch
(BofAML) triple-B U.S. Corporate Index (C0A4), and the
high-yield series reflects the option-adjusted spread of
the ICE BofAML U.S. High Yield Index (H0A0).

Amid low transaction volumes, transactionbased prices may not fully reflect the deterioration in CRE markets, because rather than
realizing losses, owners could decide not to
put their properties on the market and instead
choose to wait for more favorable conditions.
Finally, farmland prices continued to increase,
supported by high commodity prices and limited farmland inventories.

Borrowing by Households and
Businesses

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

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.

Financial Stability

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.
A commonly used measure of the financial
position of households and businesses is the

Figure 3.4. Private nonfinancial-sector
credit-to-GDP ratio, 1985–2023

ratio of the combined total debt of nonfinancial businesses and households relative to

Ratio
Quarterly

gross domestic product (GDP). Total debt
declined over the year, even as nominal GDP

2.0
1.7

continued to grow in 2023, leaving the credit-

1.4

to-GDP ratio close to its lowest level in
20 years (figure 3.4). This development sug-

1.1

gests that, in the aggregate, households and
businesses do not appear to have borrowed

0.8
1988

1995

2002

2009

2016

2023

excessively.
Separate examination of business and household borrowing yields some additional
insights. The gross leverage of large
businesses—the ratio of debt to assets for all
publicly traded nonfinancial firms—declined
slightly but remained elevated by historical

Note: The shaded bars with top caps 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.”

standards. Net leverage—the ratio of debt
less cash to assets—showed a similar trend.
The ability of public firms to service their debt, as measured by the interest coverage ratio,
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 continued to be 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.
Business credit quality declined slightly in 2023. The volume of downgrades exceeded the volume
of upgrades, and default rates slightly increased. Nevertheless, both remained low by historical
standards. Direct lending to nonfinancial businesses by private credit funds and other private

110th Annual Report | 2023

investors grew rapidly. While risks associated with private credit from investor redemption and
leverage appeared limited, the sector remains opaque, making it difficult to assess vulnerabilities.
In the household sector, household debt relative to GDP declined in 2023. 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 2023, credit card and auto
delinquency rates increased slightly. This increase was likely due to the unwinding of pandemic
support programs rather than a significant deterioration in lending standards, which remain conservative. Student loan delinquencies were held down by pandemic-related debt relief. Although
the extended pandemic forbearance has ended, the new forgiveness plan of a 12-month “on
ramp” to repayment and the new Saving on a Valuable Education plan could temper rising future
delinquencies.

Leverage in the Financial System

Figure 3.5. Common equity tier 1 ratio of
banks, 2001–23

The banking sector remained sound and resilient overall in 2023. Bank runs at Silicon

Percent of risk-weighted assets

Q4 14

Quarterly

G-SIBs
Large non–G-SIBs
Other BHCs

Valley Bank (SVB) and other banks in

March 2023 showed that the interaction of

fair value losses on bank balance sheets and

fragile funding structures could amplify a

shock. The use of a systemic risk exception

4
2
0

2002 2005 2008 2011 2014 2017 2020 2023
Note: The data 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 advanced-approaches 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. The denominator is risk-weighted
assets. G-SIBs are global systemically important U.S.
banks. Large non–G-SIBs are BHCs and IHCs with
greater than $100 billion in total assets that are not
G-SIBs. The shaded bars with top caps 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.
Source: Federal Reserve Board, Form FR Y-9C, Consolidated Financial Statements for Holding Companies.

and the Bank Term Funding Program (BTFP)
helped mitigate these vulnerabilities and
stopped the contagion from bank runs at SVB
in March 2023. Common equity tier 1 ratios—
regulatory risk-based measures of bank
capital adequacy—at the largest banks were
near or above the top quartile of their range
throughout the past decade (figure 3.5). Nonetheless, fair value losses on fixed-income
assets remain sizable at some banks, and
there is the potential for weakening loan performance associated with CRE lending to
emerge at some lenders. The largest banks
appear most resilient to these potential risks.
Some smaller banks with less diversified portfolios may face greater challenges.

Financial Stability

Outside the banking sector, leverage at large life insurance companies in 2023 remained near the
middle of its historical range and well below its pandemic peak. 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 2023 stabilized at an elevated level as the Treasury cashfutures basis trade continued to grow, suggesting a risk of sudden deleveraging if volatility in
Treasury markets increases unexpectedly.

Funding Risk
Overall, banks’ liquidity positions remained
ample based on the risk of their funding structures. High-quality liquid assets held by banks

Figure 3.6. Liquid assets held by banks,
2001–23

declined mildly in 2023, driven by reductions
Percent of assets

in holdings of central bank reserves and by
decreases in the market values of securities
as interest rates increased. Still, the levels of
high-quality liquid assets remained high by his-

Quarterly

32
28

G-SIBs
Large non–G-SIBs
Other BHCs

24
20
16

torical standards (figure 3.6). The BTFP was

created to mitigate funding vulnerabilities of

8
4

banks amid the stresses of mid-March 2023
and ended on March 11, 2024. A measure of
the exposure of banks to interest rate risk—
calculated as the difference between the
timing of cash flows arising from bank assets
and liabilities—declined over the year but
remained well above historical levels.
Outside the banking sector, assets under management (AUM) of money market funds

0
2002 2005 2008 2011 2014 2017 2020 2023
Note: 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 that are
not G-SIBs.
Source: Federal Reserve Board, Form FR Y-9C, Consolidated Financial Statements for Holding Companies.

(MMFs) continued to increase in 2023.
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 at a historically high level. Rule changes for MMFs by the
Securities and Exchange Commission that went into effect in July 2023 represent reforms to
address the structural weaknesses in this sector.

110th Annual Report | 2023

After modest outflows in 2023, 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.
Finally, stablecoin assets remained sizable at around $125 billion. Given their footprint in money
market instruments, runs on stablecoins could amplify strains in short-term funding markets.
Stablecoins are also used as cash substitutes in crypto trading, which can amplify the risk of disruptive spillovers from the crypto ecosystem to the traditional financial system. The lack of regulatory oversight for stablecoins adds to their vulnerabilities.

Domestic and International Cooperation and Coordination
The Federal Reserve cooperated and coordinated with both domestic and international institutions
in 2023 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 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 the FSOC designates an
institution 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 2023, the council had four areas of priority: (1) nonbank financial intermediation, (2) Treasury market resilience, (3) climate-related financial risk, and
(4) digital assets.3
The council continued to assess vulnerabilities associated with nonbank financial institutions. The
Hedge Fund Working Group (HFWG) has developed an interagency risk-monitoring system to
assess the financial stability risks associated with hedge funds. The Nonbank Mortgage Servicing
Task Force continued monitoring the financial stability risks posed by nonbank mortgage servicers.

See Financial Stability Oversight Council, “Minutes of the Financial Stability Oversight Council” (Washington: FSOC, February 10, 2023), https://home.treasury.gov/system/files/261/FSOC_20230210_Minutes.pdf.

Financial Stability

The council supported 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 has informed the IAWG’s
assessment of how funds’ leverage and liquidity risk-management practices affect the U.S.
Treasury market.
The council’s staff-level Climate-related Financial Risk Committee (CFRC) provided a forum for
FSOC members to coordinate and build capacity to identify, measure, and assess climate-related
financial stability risks. In July 2023, the CFRC issued a staff progress report providing an update
on efforts to advance the recommendations included in the 2021 Report on Climate-Related Financial Risk.4
Following the publication of its Report on Digital Asset Financial Stability Risks and Regulation in
2022, the council’s Digital Assets Working Group continued to discuss and analyze developments
and risks in the crypto-asset ecosystem.5
In 2023, the council issued a new proposed analytical framework for financial stability risks and
proposed updated interpretative guidance for designating nonbank financial companies for Federal
Reserve supervision and enhanced prudential standards. After releasing the two documents for
public comment on April 23, 2023, the council finalized the two documents on November 3, 2023,
with approval from the Federal Reserve as a member.6 The new framework and guidance aim to
improve the council’s ability to address risks to financial stability and to provide greater public
transparency.
The council’s 2023 annual report reviewed significant financial market developments, described
potential emerging threats to U.S. financial stability, identified vulnerabilities in the financial
system, and made recommendations to mitigate them.7 The report included boxes on the following topics: global economic conditions, household finance, the spring 2023 turmoil and policy
responses, Treasury market resilience during March 2023, successful implementation of alterna-

See Financial Stability Oversight Council, Climate-related Financial Risk: 2023 Staff Progress Report (Washington: FSOC,
July 28, 2023), https://home.treasury.gov/system/files/261/FSOC-2023-Staff-Report-on-Climate.pdf; and 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, “Analytic Framework for Financial Stability Risk Identification, Assessment, and
Response,” 88 Fed. Reg. 218 (November 14, 2023): 78,026–37, https://home.treasury.gov/system/files/261/AnalyticFramework-for-Financial%20Stability-Risk-Identification-Assessment-and-Response.pdf; and Financial Stability Oversight
Council, “Guidance on Nonbank Financial Company Determinations,” 88 Fed. Reg. 221 (November 17, 2023):
80,110–31, https://home.treasury.gov/system/files/261/Interpretive-Guidance-Regarding-Authority-to-RequireSupervision-and-Regulation-of-Certain-Nonbank-Financial-Companies.pdf.
See Financial Stability Oversight Council, Annual Report (Washington: FSOC, 2023), https://home.treasury.gov/system/
files/261/FSOC2023AnnualReport.pdf.

110th Annual Report | 2023

tive reference rates, speed of financial transactions and information transmission, and quantum
computing.

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 2023, the FSB engaged in many issues related to global financial stability. Specific work
included addressing structural vulnerabilities from liquidity mismatch in open-end funds, assessing
the financial stability implications of multifunction crypto-asset intermediaries, and enhancing the
resilience of nonbank financial intermediation.

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.

State
member
banks
(706)
Bank holding
companies
(3,794)

Savings and loan
holding companies (287)
Foreign banking organizations
operating in the U.S. (131)
State member banks’
foreign branches (42)
Edge Act and agreement
corporations¹ (33)
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.

110th Annual Report | 2023

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 2023, a total of 1,411 banks (excluding non-depository trust companies and private
banks) were members of the Federal Reserve System, of which 706 were state chartered. Federal
Reserve System member banks operated 47,166 branches and accounted for 34 percent of all
commercial banks in the United States and 67 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 17 percent of all insured U.S. commercial banks
and held approximately 17 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)
14.9

1.2

170

10.5

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

2.9

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)

1.3

103

1.1

FBO U.S. representative offices

0.0

SMBs within LFBO organizations

1.1

105*

2.8

1.0

3,452**

3.0

654

0.7

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 104 holding companies and 1 state member bank that does not have a holding company.
** Includes 3,401 holding companies and 51 state member banks that do not have holding companies.

5 insurance
4 commercial

0.5

Supervision and Regulation

Bank Holding Companies
At year-end 2023, a total of 3,794 U.S. bank holding companies (BHCs) were in operation, of
which 3,407 were top-tier BHCs. These organizations controlled 3,486 insured commercial banks
and held approximately 95 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 2023, a total of 502 domestic BHCs and 45 foreign banking organizations had FHC status. Of the domestic FHCs, 23 had consolidated assets of $100 billion or
more; 62 between $10 billion and $100 billion; 191 between $1 billion and $10 billion; and
226 less than $1 billion.

Savings and Loan Holding Companies
At year-end 2023, a total of 287 savings and loan holding companies (SLHCs) were in operation,
of which 148 were top-tier SLHCs. These SLHCs controlled 160 depository institutions. Approximately 94 percent of SLHCs engage primarily in depository or broker-dealer activities. These firms
hold approximately 62 percent ($852.6 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 (5 SLHCs) and commercial activities (4 SLHCs). The 25 largest SLHCs accounted for almost $1.3 trillion of total combined assets.
At year-end 2023, the Federal Reserve supervised five companies that own depository institutions
and are significantly engaged in insurance activities. All five of these institutions were SLHCs. As
of December 31, 2023, they had approximately $425 billion in total assets. Two of these firms
have total assets greater than $100 billion, and insured depository assets represent less than
half of total assets for four of the five SLHCs.
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. In 2023, the Federal Reserve made progress in implementing this
framework, including by issuing ratings under the new system for four supervised insurance
organizations.

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

110th Annual Report | 2023

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 (FSOC) 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.1 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.

International Activities
Foreign operations of U.S. banking organizations. At the end of 2023, a total of 21 member
banks were operating 251 branches in foreign countries and overseas areas of the United States.
Ten national banks were operating 197 of these branches, 11 state member banks were operating
42 of these branches, and 5 nonmember banks were operating the remaining 12.
Edge Act and agreement corporations. At year-end 2023, out of 33 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 2023, a total of 131 foreign banks from 47 countries operated 139 state-licensed branches and agencies, of which 6 were insured by the FDIC,
and 48 OCC-licensed branches and agencies, of which 4 were insured by the FDIC. These foreign
banks also owned six Edge Act and agreement corporations. In addition, they held a controlling
interest in 33 U.S. commercial banks. Altogether, the U.S. offices of these foreign banks controlled approximately 17.8 percent of U.S. commercial banking assets. These 131 foreign banks
1

The Federal Reserve Banks maintain accounts for and provide services to several designated FMUs.

Supervision and Regulation

also operated 88 representative offices; an
additional 32 foreign banks operated in the
United States through a representative office.
The Federal Reserve conducted or participated with state and federal regulatory
authorities in 684 examinations of foreign
banks in 2023.

Supervisory Developments
Supervisory and Regulatory Initiatives
The Federal Reserve’s supervision activities
include examinations and inspections to help
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 risk-management 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 super-

Box 4.2. Failure of Silicon
Valley Bank and the Federal
Reserve’s Response
Following the failures of Silicon Valley Bank
(SVB) and Signature Bank in March 2023,
the Federal Reserve took action to respond
to the current banking conditions and contagion risk across the financial system,
including enhancing monitoring of firms with
similar risk profiles.
Immediately after SVB’s failure, Chair Jerome
Powell and Vice Chair for Supervision Michael
Barr agreed that Vice Chair for Supervision
Barr should lead a review of the failure, and
on April 28, 2023, the results of that review
were published. The report provided a review
of the factors that contributed to the failure
of SVB. The report showed that SVB was a
highly vulnerable firm in ways that were not
fully appreciated by the firm’s board of directors, senior management, and Federal
Reserve supervisors. These vulnerabilities—
foundational and widespread managerial
weaknesses, a highly concentrated business
model, and a reliance on uninsured
deposits—left SVB exposed to the specific
combination of rising interest rates and
slowing activity in the technology sector that
materialized in 2022 and early 2023.
The failure of SVB and the ensuing stress in
the banking system highlighted the need to
improve the speed, force, and agility of supervision to align better with the risks, size, and
complexity of supervised banks, as appropriate. The Federal Reserve has been
working to ensure supervision intensifies at
the right pace as a bank grows in size and
complexity, to modify supervisory processes
so that issues, once identified, are
addressed more quickly by both banks and
supervisors, and to find better ways to
incorporate forward-looking analysis into
supervision.

vised institution’s remediation of supervisory findings in areas, such as independent risk
management and controls, compliance, operational and cyber resilience, and information technology.
In 2023, the Federal Reserve conducted 316 examinations of state member banks, 2,894 inspections of bank holding companies, and 120 inspections of savings and loan holding companies.

110th Annual Report | 2023

Tables 4.2 and 4.3 provide information on examinations and inspections conducted by the Federal
Reserve during the past five years. Additionally, the Federal Reserve took a number of actions,
including enhanced monitoring to stabilize the banking environment after two bank failures (box 4.2).

Table 4.2. Savings and loan holding companies, 2019–23
Entity/item

2023

2022

2021

2020

2019

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

1,334

1,741

1,856

2,026

1,822

Number of inspections

By Federal Reserve System

100

102

107

119

134

Total assets (billions of dollars)

Number of inspections

102

By Federal Reserve System

102

Total assets (billions of dollars)

Assets of $1 billion or less
Total number

Table 4.3. State member banks and bank holding companies, 2019–23
Entity/item
State member banks
Total number
Total assets (billions of dollars)
Number of examinations
By Federal Reserve System
By state banking agency
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
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

2023

2022

2021

2020

2019

706
3,894
559
316
243

701
3,997
524
289
235

705
4,016
471
288
183

734
3,568
502
263
239

754
2,642
554
327
227

824
25,979
1,051
989
62

809
25,275
966
891
75

795
25,185
996
919
77

746
23,811
875
814
61

631
20,037
805
761
44

2,613
886
1,694
1,589
106

2,672
883
1,768
1,699
69

2,762
900
1,801
1,727
74

2,887
883
1,967
1,890
77

3,094
870
2,122
2,033
89

502
45

505
46

504
45

502
44

493
44

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

Supervision and Regulation

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 2023, 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 July 2023, the Federal Reserve
announced the individual capital requirements
for large banks, which include the stress
capital buffer requirement based on the
results of the 2023 stress test. These requirements became effective as of

Box 4.3. Stress Testing
Publications Released
in 2023
More details on the 2023 stress test scenarios are available at https://
www.federalreserve.gov/newsevents/
pressreleases/files/bcreg20230209a1.pdf.
More details on the 2023 stress test model
methodologies are available at https://
www.federalreserve.gov/publications/files/
2023-june-supervisory-stress-testmethodology.pdf.

October 1, 2023.
For the first time, the Federal Reserve also
published an exploratory market shock that
applied only to U.S. global systemically important banks and posed a different set of risks
than the global market shock component.2
Consistent with the nature of an exploratory

More details on the 2023 stress test results
are available at https://
www.federalreserve.gov/publications/files/
2023-dfast-results-20230628.pdf.
More details on the stress capital buffer
requirements published in 2023 are available
at https://www.federalreserve.gov/
publications/files/large-bank-capitalrequirements-20230727.pdf

exercise, the exploratory market shock did not
contribute to the capital requirements set by
the 2023 stress test. For stress testing publications released in 2023, see box 4.3.

The global market shock applies to banks with large trading operations and stresses their trading, private equity, and
certain other fair-valued positions. It consists of a set of hypothetical shocks to a large set of risk factors reflecting general market distress and heightened uncertainty. Banks with substantial trading or custodial operations are also tested
against the default of their largest counterparty.

110th Annual Report | 2023

Fiduciary Activities
In 2023, Federal Reserve examiners conducted 73 fiduciary examinations of state member banks
and non-depository trust companies.
Transfer Agents
During 2023, the Federal Reserve conducted transfer agent examinations at three state member
banks and two 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 governing dealing and brokering in government securities. During 2023, the Federal Reserve conducted eight 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 every two calendar years. During 2023, the Federal Reserve examined
six 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.

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.3 The Federal Reserve provides
guidance, tools, and educational resources to assist supervised institutions in managing
such risks.

Operational risk management includes risk management of information technology, cyber, and third-party risks.

Supervision and Regulation

In June 2023, the Board, the FDIC, and the OCC issued the Interagency Guidance on Third-Party
Relationships: Risk Management that describes principles and considerations for banking organizations’ risk management of third-party relationships, including key considerations for cybersecurity and operational risks associated with such relationships.
In July 2023, staff from the Board and other federal banking agencies conducted an “Ask the
Regulator” session to highlight key aspects of the third-party risk-management guidance and its
application to banks. In November 2023, Board staff conducted an “Ask the Fed” session to
address questions about the guidance from banks, including smaller banks.
The Federal Reserve examined and monitored supervised institutions for operational risks as part
of its safety and soundness supervision:
• In 2023, 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 collaborated with other financial regulators, U.S Treasury, and private industry
to promote effective safeguards against operational and cyber risks to the financial services
sector and its critical infrastructure. This included contributions to the Federal Financial Institutions Examination Council’s (FFIEC’s) IT Subcommittee and Cybersecurity and Critical Infrastructure
Subcommittee, the Financial and Banking Information Infrastructure Committee, the Cybersecurity
Forum for Independent and Executive Branch Regulator, the Department of Homeland Security’s
Cybersecurity and Infrastructure Security Agency Cyber Incident Reporting Council, and Cyber Incident Reporting for Critical Infrastructure Act-related deliberations. The Federal Reserve, together
with the other members of the Financial Banking Information Infrastructure Committee (FBIIC) and
the Financial Services Sector Coordinating Council, collaborated on financial sector resilience initiatives, including participation in the Cloud Executive Steering Group.4
The Board led or contributed to cybersecurity activities undertaken by various international groups.
Board staff continued to participate in the work of the Financial Stability Board (FSB) to address
4

See U.S. Department of the Treasury, “U.S. Department of the Treasury Kicks Off Public–Private Executive Steering
Group to Address Cloud Report Recommendations,” news release, May 25, 2023, https://home.treasury.gov/news/
press-releases/jy1503. The Federal Reserve and other members of the FBIIC contributed to a Treasury report that
assesses the opportunities and challenges the financial sector faces by adopting cloud-based technologies, in which
this working group was first announced.

110th Annual Report | 2023

current and emerging operational risks. This resulted in the publication of the policy documents,
“Enhancing Third-Party Risk Management and Oversight: A toolkit for financial institutions and
financial authorities” and “Recommendations to Achieve Greater Convergence in Cyber Incident
Reporting: Final Report.5

Crypto-Asset Supervision
Novel Activities Supervision Program
In 2023, the Federal Reserve System launched the Novel Activities Supervision Program to
enhance the supervision of novel activities conducted by banking organizations supervised by the
Federal Reserve.6 The goal of the program is to foster innovation at banking organizations while
recognizing and appropriately addressing risks to help ensure the safety and soundness of the
banking system. The program focuses on novel activities related to crypto-assets; distributed
ledger technology; and complex, technology-driven partnerships with nonbanks to deliver financial
services to customers.
The Federal Reserve established this program with dedicated staff to maintain strong and consistent oversight of novel activities at supervised institutions, and to help ensure that the novel risks
associated with innovation are appropriately addressed. By bringing together staff focused on
novel activities, the Federal Reserve’s knowledge of these activities can grow more rapidly and
continue to build upon and enhance technical expertise related to novel activities. The program
will also inform the development of supervisory approaches and guidance for banking organizations engaging in novel activities, as warranted.
Crypto-Related Activities
In 2023, the Federal Reserve issued a number of statements with respect to banking organizations’ engagement in crypto-asset related activities and with the crypto-sector. On
January 3, 2023, the Federal Reserve, the OCC, and the FDIC issued a joint statement of key risks
associated with crypto-assets and crypto-asset sector participants that banking organizations
should be aware of. The highlighted risks included fraud and scams; legal uncertainties; inaccurate or misleading representations and disclosures; volatility; runs on stablecoins; interconnectedness among crypto-asset participants; immature governance and risk management practices; and
heightened risks associated with open, public, and/or decentralized networks, among others.

See Financial Stability Board, Final Report on Enhancing Third-Party Risk Management and Oversight – A Toolkit for Financial Institutions and Financial Authorities (Basel: FSB, December 2023), https://www.fsb.org/2023/12/final-report-onenhancing-third-party-risk-management-and-oversight-a-toolkit-for-financial-institutions-and-financial-authorities/ and Recommendations to Achieve Greater Convergence in Cyber Incident Reporting: Final Report (Basel: FSB, April 2023),
https://www.fsb.org/2023/04/recommendations-to-achieve-greater-convergence-in-cyber-incident-reporting-final-report/.
See https://www.federalreserve.gov/publications/files/202311-supervision-and-regulation-report.pdf.

Supervision and Regulation

On February 23, the agencies issued a second statement focused on liquidity risk and the potential volatility of funding inflows and outflows associated with crypto-asset activity. On
August 8, 2023, the Federal Reserve published SR letter 23-08/CA letter 23-08, “Supervisory
Nonobjection Process for State Member Banks Seeking to Engage in Certain Activities Involving
Dollar Tokens,” describing the process through which state member banks may seek a supervisory
nonobjection before conducting certain activities involving “dollar tokens.”7 The supervisory nonobjection expectation was first articulated in the Board’s January 27, 2023, Policy Statement on section 9(13) of the Federal Reserve Act (Policy Statement).8 The SR letter does not create any new
substantive expectations but lays out the process state member banks should follow to obtain
such supervisory nonobjection. The letter notes that Federal Reserve staff will focus on operational, cyber security, liquidity, illicit finance, and consumer compliance risks.

Climate-Related Financial Risks
In 2023, the Board launched a pilot Climate Scenario Analysis exercise to learn about large
banking organizations’ climate risk-management practices and challenges and to enhance the
ability of both large banking organizations and supervisors to identify, measure, monitor, and
manage climate-related financial risks. As described in the Participant Instructions released on
January 17, 2023, the exercise considered the impact of physical and transition risk scenarios of
varying levels of severity on participating banks’ balance sheets. The exercise was exploratory in
nature and does not have consequences for bank capital or supervisory implications.9
On October 24, 2023, the Board, along with other federal banking regulatory agencies, finalized
principles that provide a high-level framework for the safe and sound management of exposures to
climate-related financial risks for large financial institutions.10 The principles are intended for institutions with $100 billion or more in total assets and address physical and transition risks associated with climate change. General climate-related financial risk management principles are provided with respect to a financial institution’s governance; policies, procedures, and limits; strategic
planning; risk management; data, risk measurement, and reporting; and scenario analysis. Additionally, the principles describe how climate-related financial risks can be addressed in the management of traditional risk areas, including credit, market, liquidity, operational, and legal risks.

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,

7
8
9
10

See https://www.federalreserve.gov/supervisionreg/srletters/SR2308.htm.
See https://www.federalreserve.gov/newsevents/pressreleases/bcreg20230127a.htm.
See https://www.federalreserve.gov/publications/climate-scenario-analysis-exercise-instructions.htm.
See https://www.federalreserve.gov/newsevents/pressreleases/bcreg20231024b.htm.

110th Annual Report | 2023

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.
In 2023, the Federal Reserve completed 63 formal enforcement actions. Civil money penalties
totaling $542,329,952.20 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 99 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).
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 2023, one state member bank was required to submit data to the Federal Reserve. These data
are made available upon request and are 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 of 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

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.

Supervision and Regulation

appealing institution is not satisfied 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
information is available regarding the Federal Reserve Board’s appeals process and Ombuds
policy.13
In 2023, the Board received one MSD appeal from a state member community banking organization. The Board also granted one request for an extension to file an appeal from another state
member community banking organization.

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 FSOC 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 to the U.S. Treasury $771,050,870 from 53 institutions for the 2022 S&R
Regulation TT assessment in 2023.

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.
International Training and Technical Assistance
In 2023, 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. The Federal
Reserve organized 20 training seminars, held both onshore and overseas, for the benefit of foreign supervisory authorities. Approximately 900 financial institution supervisors from foreign central banks and supervisory agencies attended these training events during 2023.
Federal Reserve staff also collaborated with the International Monetary Fund and the World Bank
to organize two training events for senior supervisory officials. Other training partners that collaborated with the Federal Reserve during 2023 to organize training events included the Association of

See https://www.federalreserve.gov/supervisionreg/srletters/SR2028.htm and https://www.federalreserve.gov/
aboutthefed/ombpolicy.htm.

110th Annual Report | 2023

Bank Supervisors of the Americas, the National Banking and Securities Commission of Mexico,
and the European Central Bank.
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.14 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 program supports an inclusive
financial system and helps facilitate access to credit and other financial services in traditionally
underserved areas.
The Federal Reserve maintains the PFP website, which supports MDIs by providing them with technical information and links to useful resources.15 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 community organizations. As of year-end
2023, the Federal Reserve’s MDI portfolio consisted of 16 state member banks.
Throughout 2023, the System supported MDIs and conducted a number of outreach initiatives,
webinars, and conferences specific to MDIs, including the following:
• 2023 Interagency Minority Depository Institution and CDFI Bank Conference: The Federal Reserve
along with the FDIC and OCC, hosted the biennial interagency conference for MDI and Community Development Financial Institution (CDFI) banks on November 15–16, 2023, at the Federal
Reserve Bank of Dallas. The conference theme was “MDI and CDFI Bank Partnership Exchange”
and focused on collaboration, partnership, and promoting the mission of MDIs and CDFIs
among leaders at these institutions.
• September 2023 Minorities in Banking Forum: The Federal Reserve Bank of Dallas hosted the
System’s annual Minorities in Banking Forum on September 27–28, 2023. This forum was for
mid-level and senior banking leaders in the financial services industry and focused on leadership, diversity, and career enhancement.

Section 367 of the Dodd-Frank Act requires the Board to submit an annual report to 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. 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. See also “Annual Report on Promoting Minority Depository Institutions,” Board of Governors of the
Federal Reserve System, last modified December 21, 2023, https://www.federalreserve.gov/publications/preservingminority-depository-institutions.htm.
See https://www.fedpartnership.gov.

Supervision and Regulation

• National Bankers Association: Board staff represented PFP at the National Bankers Association
conference in Washington, D.C. The conference focused on building partnerships, technology,
capital, and deposits.
• Bank Term Funding Program: The PFP team hosted a special “Ask the Fed” webinar on the Bank
Term Funding Program for MDIs and CDFIs.
• Emergency Capital Investment Program (ECIP):16 The PFP, along with the FDIC and OCC, hosted
an ECIP Interagency Webinar to provide MDIs with technical assistance on supervisory expectations for ECIP recipients.

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.
Financial Stability Board
In 2023, 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
enhancing cross-border payments, finalizing recommendations for regulating and supervising
crypto-assets and stablecoins, revising recommendations to address vulnerabilities of open-ended
funds, and developing a toolkit for enhancing third-party risk management and oversight. 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
2023 include
• The Financial Stability Risks of Decentralised Finance (issued in February and available at
https://www.fsb.org/2023/02/the-financial-stability-risks-of-decentralised-finance/)
• The Financial Stability Aspects of Commodities Markets (issued in February and available at
https://www.fsb.org/2023/02/the-financial-stability-aspects-of-commodities-markets/)
• High-level Recommendations for the Regulation, Supervision and Oversight of Crypto-Asset Activities and Markets: Final Report (issued in July and available at https://www.fsb.org/2023/07/
high-level-recommendations-for-the-regulation-supervision-and-oversight-of-crypto-asset-activitiesand-markets-final-report/)
16

Established by the Consolidated Appropriations Act, 2021, the Emergency Capital Investment Program (ECIP) was created to encourage low- and moderate-income community financial institutions to augment their efforts to support small
businesses and consumers in their communities. Under the program, the U.S. Treasury Department provided nearly
$9 billion in capital directly to depository institutions that are certified CDFIs or MDIs.

110th Annual Report | 2023

• The Financial Stability Implications of Leverage in Non-Bank Financial Intermediation (issued in
September and available at https://www.fsb.org/2023/09/the-financial-stability-implications-ofleverage-in-non-bank-financial-intermediation/)
• Annual Progress Report on Meeting the Targets for Cross-Border Payments: 2023 Report on Key
Performance Indicators (issued in October and available at https://www.fsb.org/2023/10/
annual-progress-report-on-meeting-the-targets-for-cross-border-payments-2023-report-on-keyperformance-indicators/)
• Final Report on Enhancing Third-Party Risk Management and Oversight – A Toolkit for Financial
Institutions and Financial Authorities (issued in December and available at https://www.fsb.org/
2023/12/final-report-on-enhancing-third-party-risk-management-and-oversight-a-toolkit-forfinancial-institutions-and-financial-authorities/)
• Revised Policy Recommendations to Address Structural Vulnerabilities from Liquidity Mismatch in
Open-Ended Funds (issued in December and available at https://www.fsb.org/2023/12/
revised-policy-recommendations-to-address-structural-vulnerabilities-from-liquidity-mismatch-inopen-ended-funds/)
A comprehensive list of FSB publications is available at https://www.fsb.org/publications.
Basel Committee on Banking Supervision
During 2023, 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.17 In 2023, the BCBS was particularly focused on
supporting the implementation of Basel III reforms, reviewing the 2023 banking turmoil, analyzing
the digitalization of finance, and tracking emerging risks to the banking system.
Examples of final BCBS documents issued in 2023 include
• Progress in Adopting the Principles for Effective Risk Data Aggregation and Risk Reporting (issued
in November and available at https://www.bis.org/bcbs/publ/d559.htm)
• Newsletter on the Implementation of the Principles for the Effective Management and Supervision
of Climate-Related Financial Risks (issued in November and available at https://www.bis.org/
publ/bcbs_nl33.htm)
• Finalisation of Various Technical Amendments (issued in November and available at https://
www.bis.org/bcbs/publ/d557.htm)
• Report on the 2023 Banking Turmoil (issued in October and available at https://www.bis.org/
bcbs/publ/d555.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

• Basel III Monitoring Report (issued in September and available at https://www.bis.org/bcbs/
publ/d554.htm)
• Newsletter on Credit Risk Issues (issued in July and available at https://www.bis.org/publ/
bcbs_nl32.htm)
Examples of consultative BCBS documents issued in 2023 include
• Recalibration of Shocks for Interest Rate Risk in the Banking Book (issued in December and
available at https://www.bis.org/bcbs/publ/d561.htm)
• Disclosure of Climate-Related Financial Risks (issued in November and available at https://
www.bis.org/bcbs/publ/d560.htm)
• Disclosure of Cryptoasset Exposures (issued in October and available at https://www.bis.org/
bcbs/publ/d556.htm)
• Core Principles for Effective Banking Supervision (final consultation issued in July and available
at https://www.bis.org/bcbs/publ/d551.htm)
A comprehensive list of BCBS publications is available at https://www.bis.org/bcbs/publications.htm.
Committee on Payments and Market Infrastructures
In 2023, the Federal Reserve continued its active participation in the activities of the Committee
on Payments 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 2023, the program moved into a phase focused on practical improvements. In this phase, the CPMI’s focus was to encourage and facilitate action by both the public
and private sectors as well as facilitate collaboration and engagement with a broad group of
stakeholders.
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 2023, CPMI-IOSCO advanced work on practices for addressing nondefault losses at CCPs and margining practices. In addition, CPMI-IOSCO continued to monitor
implementation of the Principles for Financial Market Infrastructures.
Some examples of 2023 CPMI publications include
• Exploring Multilateral Platforms for Cross-Border Payments (published by CPMI, the BIS Innovation Hub, the International Monetary Fund, and the World Bank in January and available at
https://www.bis.org/cpmi/publ/d213.pdf)

110th Annual Report | 2023

• Operational and Technical Considerations for Extending and Aligning Payment System Operating
Hours for Cross-Border Payments: An Analytical Framework (published by CPMI in February and
available at https://www.bis.org/cpmi/publ/d214.pdf)
• Facilitating Increased Adoption of Payment Versus Payment (PvP) (published by CPMI in March
and available at https://www.bis.org/cpmi/publ/d216.pdf)
• Margin Dynamics in Centrally Cleared Commodities Markets in 2022 (published by CPMI, IOSCO,
and BCBS in May and available at https://www.bis.org/bcbs/publ/d550.pdf)
• Report on Current Central Counterparty Practices to Address Non-Default Losses (published by
CPMI and IOSCO in August and available at https://www.bis.org/cpmi/publ/d217.pdf)
• Harmonised ISO 20022 Data Requirements for Enhancing Cross-Border Payments (published by
CPMI in October and available at https://www.bis.org/cpmi/publ/d218.pdf)
• Considerations for the Use of Stablecoin Arrangements in Cross-Border Payments (published by
CPMI in October and available at https://www.bis.org/cpmi/publ/d220.pdf)
Example of a consultative CPMI document issued in 2023 include
• Linking Fast Payment Systems Across Borders: Considerations for Governance and Oversight (published by CPMI in October and available at https://www.bis.org/cpmi/publ/d219.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 2023 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 standards that have the potential to significantly impact the U.S.
insurance market.
In 2023, the IAIS made progress on several initiatives. The IAIS finalized the criteria for assessing
whether the Aggregation Method provides comparable outcomes to the Insurance Capital Standard
(ICS), consulted on several associated ICPs, and progressed work on incorporating climate risk
guidance into certain ICPs.
Examples of IAIS documents issued in 2023 include
• Issues Paper on Roles and Functioning of Policyholder Protection Schemes (PPSs) (issued in
December and available at https://www.iaisweb.org/2023/12/iais-publishes-issues-paper-onroles-and-functioning-of-policyholder-protection-schemes-ppss/)

Supervision and Regulation

• Public Consultation on Insurance Capital Standard as a Prescribed Capital Requirement (issued in
June and available at https://www.iaisweb.org/uploads/2023/06/ICS-as-a-PCR-Publicconsultation-document.pdf)
• Explanatory Note on the Final Criteria for the Aggregation Method Comparability Assessment
(issued in March and available at https://www.iaisweb.org/uploads/2023/03/explanatory-noteon-the-final-criteria-for-the-aggregation-method-comparability-assessment.pdf)
• Public Consultation on ICP 14 (Valuation) and ICP 17 (Capital Adequacy) (issued in June and
available at https://www.iaisweb.org/uploads/2023/06/Draft-Revised-ICP-14.pdf and https://
www.iaisweb.org/uploads/2023/06/Draft-Revised-ICP-17.pdf)
• Public Consultation on Climate Risk Supervisory Guidance – Part One (issued in March and available at https://www.iaisweb.org/uploads/2023/03/climate-risk-supervisory-guidance-partone.pdf)
A comprehensive list of IAIS publications is available at https://www.iaisweb.org/publications.
The Federal Reserve’s Insurance Policy Advisory Committee (IPAC) continued to provide advice to
the Board in 2023 on various matters under consideration at the IAIS among other insurance
issues. The IPAC was established by the Economic Growth, Regulatory Relief, and Consumer Protection Act to provide information, advice, and recommendations on international insurance capital
standards and other insurance issues.18 In 2023, the IPAC commented on the IAIS’s consultation
on the ICS from a U.S. life insurance industry perspective. The IPAC also explored potential
liquidity concerns for life insurers due to rising rates. The Working Group concluded that life
insurers have strong liquidity positions and that the rising rates were unlikely to cause issues
within the industry. Additionally, the IPAC established a Climate Working Group to advise the Board
on the climate insurance issues in the United States.

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 2023 Shared National Credit review is available at https://
www.federalreserve.gov/newsevents/pressreleases/bcreg20230224a.htm.

More information on the IPAC can be found at https://www.federalreserve.gov/aboutthefed/ipac.htm.

110th Annual Report | 2023

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.
During 2023, the Federal Reserve continued to participate in an ongoing interagency effort to
update this manual. Many of the revisions are designed to emphasize and enhance the riskfocused approach to BSA/AML supervision and to continue to provide transparency into the
BSA/AML and Office of Foreign Assets Control examination process.
The Anti-Money-Laundering Act of 2020 (AML 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 the AML Act.
The Federal Reserve continued to participate 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 October 2023 publication of
the G–20 Roadmap for Enhancing Cross-border Payments Consolidated progress report
for 2023.19
19

See https://www.fsb.org/2023/10/g20-roadmap-for-enhancing-cross-border-payments-consolidated-progressreport-for-2023/.

Supervision and Regulation

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. The Federal Reserve
participated in meetings and roundtables during the year to discuss AML/CFT issues with delegations from countries and regions, such as the European Union, Japan, Singapore, the United
Kingdom, and Uzbekistan. Additionally, the Federal Reserve provided technical training regarding
AML/CFT risks and examinations via seminars hosted by banking supervisors in the Caribbean
and West African regions. These dialogues are designed to promote information sharing and
understanding of AML/CFT 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.20 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 2023, the following regulatory reporting forms had substantive revisions:
• Capital and Asset Report for Foreign Banking Organizations (FR Y-7Q)—The Board revised the
FR Y-7Q report to (1) collect the total combined U.S. assets net of intercompany balances and
transactions, based on a quarterly average, (2) require the three items that capture U.S. assets
to be filed by all respondents on a calendar quarter-end or year-end basis, (3) as of
December 31, 2023, change the due date for all FR Y-7Q filers that also file the Systemic Risk
Report (FR Y-15; Office of Management and Budgets (OMB) No. 71000352) from 90 days to
70 days after the report date and as of December 31, 2024, change the due date for the
remaining FR Y-7Q filers who are not eligible to file the FR Y-15, from 90 days to 70 days after
the report date, and (4) make other minor clarifications and conforming edits to the form and
instructions. The revisions were effective as of the December 31, 2023, report date for FR Y-7Q

Holding companies are defined as BHCs, intermediate holding companies (IHCs), SLHCs, and securities holding
companies.

110th Annual Report | 2023

respondents that are also required to file the FR Y-15 report. For all other FR Y-7Q respondents,
the revisions will be effective as of the December 31, 2024, report date.21
• Consolidated Financial Statements for Holding Companies (FR Y-9C)—Section 604 of the
Financial Services Regulatory Relief Act of 2006 requires the Board, OCC, and FDIC (the
banking agencies) to perform every five years, a review of information collected in the FFIEC
Consolidated Reports of Condition and Income (Call Reports) (FFIEC 031, FFIEC 041, and
FFIEC 051) (statutorily mandated review) to reduce or eliminate information or schedules that
the banking agencies determine are no longer necessary. The banking agencies completed the
statutorily mandated review in 2023 and eliminated or consolidated certain line items from the
Call Reports.22 To reduce burden, the Board made conforming revisions to the FR Y-9C.23 The
revisions were effective as of the September 30, 2023, report date.
• Capital Assessments and Stress Testing (FR Y-14)—The Board revised the FR Y-14Q in connection with a proposal finalized in 2022.24 These revisions serve to better identify risks not
currently captured in the supervisory stress test, facilitate data reconciliation, and mitigate
ambiguity within the instructions. The revisions were effective as of the June 30, 2023,
report date.
• Consolidated Holding Company Report of Equity Investments in Nonfinancial Companies and
Annual Report of Merchant Banking Investments Held for an Extended Period (FR Y-12 and
FR Y-12A)—The Board revised the FR Y-12 and FR Y-12A to (1) specify when respondents
should submit their reports if the submission deadline falls on a weekend or holiday, (2) add a
recordkeeping requirement that respondents must maintain a record of the data submitted for
three years and maintain either a physical or an electronic scanned copy of the manually signed
and attested submission, (3) clarify what is included in the amount of the aggregate nonfinancial equity investment, and (4) align the submission deadline of the FR Y-12A with that of the
FR Y-12. The revisions were effective as of the December 31, 2023, report date.25
• Single-Counterparty Credit Limits (FR 2590)—The Board revised the FR 2590 to (1) add a
table for calculating derivative transaction exposures using the standardized approach for counterparty credit risk (SA-CCR) that captures collateral received, (2) clarify a respondent that is an
FBO subject to a large exposure standard on a consolidated basis established by its homecountry supervisor is not required to provide additional documentation as part of its submission, (3) clarify that respondents should use the tier 1 capital and total consolidated assets

22
23
24
25

88 Fed. Reg. 85,886 (December 11, 2023), https://www.govinfo.gov/content/pkg/FR-2023-12-11/pdf/202327055.pdf.
88 Fed. Reg. 38,592 (June 13, 2023), https://www.govinfo.gov/content/pkg/FR-2023-06-13/pdf/2023-12553.pdf.
88 Fed. Reg. 56,624 (August 18, 2023), https://www.govinfo.gov/content/pkg/FR-2023-08-18/pdf/2023-17827.pdf.
87 Fed. Reg. 52,560 (August 26, 2022), https://www.govinfo.gov/content/pkg/FR-2022-08-26/pdf/2022-18396.pdf.
88 Fed. Reg. 84,327 (December 5, 2023), https://www.govinfo.gov/content/pkg/FR-2023-12-05/pdf/2023-26583.pdf.

Supervision and Regulation

data that is concurrent with its FR 2590 submission, and (4) make other minor clarifications
and conforming edits.26 The revisions were finalized December 28, 2023, and will be effective
as of the June 30, 2024, report date.

FFIEC Regulatory Reports
The Federal Reserve, along with the other FFIEC member agencies, requires financial institutions
to submit various uniform regulatory reports.27 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 2023, the FFIEC member agencies completed a statutorily mandated review of the FFIEC
Call Reports and revised other reports to improve the monitoring of certain hedging activity and
country exposures.
• Consolidated Reports of Condition and Income (FFIEC 031, 041, 051)—As noted above, 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 on the Call Reports. Under the auspices of the FFIEC,
the banking agencies completed the statutorily mandated review in 2022 and, following a
request for public comment and approval by the OMB, the FFIEC member agencies eliminated or
consolidated certain data items on the Call Reports effective as of the September 30, 2023,
report date.28
• 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 resulting from the 2022 statutorily mandated review.29 These
changes were effective as of the September 30, 2023, report date.

Staff Development Programs
The Federal Reserve’s staff development program supports the ongoing development of nearly
4,200 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 2023 are summarized in table 4.4.

28
29

88 Fed. Reg. 89,691 (December 28, 2023), https://www.govinfo.gov/content/pkg/FR-2023-12-28/pdf/202328683.pdf.
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.
88 Fed. Reg. 38,592 (June 13, 2023), https://www.govinfo.gov/content/pkg/FR-2023-06-13/pdf/2023-12553.pdf.
88 Fed. Reg. 38,592 (June 13, 2023), https://www.govinfo.gov/content/pkg/FR-2023-06-13/pdf/2023-12553.pdf.

110th Annual Report | 2023

Table 4.4. Training for supervision and regulation, 2023
Number of enrollments
Course sponsor or type

Federal Reserve personnel

Instructional time
State and federal banking (approximate training days)2 Number of course offerings
agency personnel1

Federal Reserve System

732

FFIEC (virtual)3

560

15543

492

128

FFIEC (in-person)

229

144

420

Rapid Response4

23,635

1,068

1
2

State personnel reflects total state attendees, sponsored by each federal agency.
Training days are approximate. System courses were calculated using five days as an average, with FFIEC courses calculated using four days
as an average.
Virtual training is offered through three alternative delivery methods: (1) virtual, instructor-led classes; (2) the FFIEC Examiner Exchange
Program; and (3) self-study programs.
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.

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.” 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 2023, 74 examiners passed the proficiency examination (35 in CBO, 6 in consumer compliance,
and 33 in LFI).

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.

Supervision and Regulation

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 2023,
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 2023 (see table 4.5).
Table 4.5. Federal Reserve or interagency rulemakings/statements/guidance
(proposed and final), 2023
Date issued

Rulemaking/statement/guidance

1/3/2023

Agencies issue joint statement on crypto-asset risks to banking organizations.
Joint press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20230103a.htm

1/27/2023

Federal Reserve Board issues policy statement to promote a level playing field for all banks with a federal supervisor,
regardless of deposit insurance status.
Press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20230127a.htm

2/9/2023

Federal Reserve Board releases hypothetical scenarios for its 2023 bank stress tests.
Press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20230209a.htm

2/23/2023

Agencies issue joint statement on liquidity risks resulting from crypto-asset market vulnerabilities.
Joint press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20230223a.htm

3/13/2023

Federal Reserve Board announces that Vice Chair for Supervision Michael S. Barr is leading a review of the supervision
and regulation of Silicon Valley Bank, in light of its failure.
Press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20230313a.htm

4/25/2023

Federal Reserve Board announces that the review of the supervision and regulation of Silicon Valley Bank, led by Vice
Chair for Supervision Barr, will be released on Friday, April 28, at 11:00 a.m. EDT.
Press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20230425a.htm

4/26/2023

SR-23-2/CA-23-3, “Joint statement on completing the LIBOR transition.”
Release: https://www.federalreserve.gov/supervisionreg/srletters/SR2302.htm

4/28/2023

Federal Reserve Board announces the results from the review of the supervision and regulation of Silicon Valley Bank,
led by Vice Chair for Supervision Barr.
Press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20230428a.htm

5/8/2023

SR-23-3/CA-23-4, “One Agile Supervision Solution external portal to be utilized for information exchange during
supervisory events.”
Release: https://www.federalreserve.gov/supervisionreg/srletters/SR2303.htm

5/19/2023

Agencies issue host state loan-to-deposit ratios.
Joint press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20230519a.htm

6/1/2023

Agencies request comment on quality control standards for automated valuation models proposed rule.
Joint press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20230601a.htm

6/6/2023

Agencies issue final guidance on third-party risk management.
Joint press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20230606a.htm

6/7/2023

SR-23-4, “Interagency Guidance on Third-Party Relationships: Risk Management.”
Release: https://www.federalreserve.gov/supervisionreg/srletters/SR2304.htm

6/8/2023

Agencies propose interagency guidance on reconsiderations of value for residential real estate valuations.
Joint press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20230608a.htm
(continued)

110th Annual Report | 2023

Table 4.5—continued
Date issued

Rulemaking/statement/guidance

6/14/2023

Federal Reserve Board announces that results from its annual bank stress tests will be released on Wednesday, June 28,
at 4:30 p.m. EDT.
Press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20230614a.htm

6/23/2023

Agencies release list of distressed or underserved nonmetropolitan middle-income geographies.
Joint press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20230623a.htm

6/28/2023

Federal Reserve Board releases results of annual bank stress test, which demonstrates that large banks are well
positioned to weather a severe recession and continue to lend to households and businesses even during a severe
recession.
Press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20230628a.htm

6/29/2023

Agencies finalize policy statement on commercial real estate loan accommodations and workouts.
Joint press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20230629a.htm

6/30/2023

SR-23-5, “Prudent Commercial Real Estate Loan Accommodations and Workouts.”
Release: https://www.federalreserve.gov/supervisionreg/srletters/SR2305.htm

7/27/2023

Agencies request comment on proposed rules to strengthen capital requirements for large banks.
Joint press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20230727a.htm

7/27/2023

Federal Reserve Board announces the individual capital requirements for all large banks, effective on October 1.
Press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20230727b.htm

7/28/2023

Agencies update guidance on liquidity risks and contingency planning.
Joint press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20230728a.htm

8/2/2023

SR-23-6, “Release of Six Sections of the Federal Financial Institutions Examination Council’s Bank Secrecy Act/AntiMoney Laundering Examination Manual.”
Release: https://www.federalreserve.gov/supervisionreg/srletters/SR2306.htm

8/8/2023

Federal Reserve Board provides additional information on its program to supervise novel activities in the banks it
oversees.
Press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20230808a.htm

8/8/2023

SR-23-7, “Creation of Novel Activities Supervision Program.”
Release: https://www.federalreserve.gov/supervisionreg/srletters/SR2307.htm

8/8/2023

SR-23-8/CA-23-5, “Supervisory Nonobjection Process for State Member Banks Seeking to Engage in Certain Activities
Involving Dollar Tokens.”
Release: https://www.federalreserve.gov/supervisionreg/srletters/SR2308.htm

8/29/2023

Agencies request comment on proposed rule to require large banks to maintain long-term debt to improve financial
stability and resolution.
Joint press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20230829a.htm

8/29/2023

Agencies propose guidance to enhance resolution planning at large banks.
Joint press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20230829b.htm

9/20/2023

Agencies extend favorable Community Reinvestment Act consideration of revitalization activities in certain disaster areas
affected by Hurricane Maria.
Joint press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20230920a.htm

10/6/2023

Federal Reserve Board finalizes a rule establishing capital requirements for insurers supervised by the Board.
Press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20231006a.htm

10/20/2023

Agencies extend comment period on proposed rules to strengthen large bank capital requirements.
Joint press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20231020a.htm

10/20/2023

Federal Reserve Board launches data collection to gather more information from the banks affected by the large bank
capital proposal it announced earlier this year.
Press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20231020b.htm

10/24/2023

Agencies issue final rule to strengthen and modernize Community Reinvestment Act regulations.
Joint press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20231024a.htm

10/24/2023

Agencies issue principles for climate-related financial risk management for large financial institutions.
Joint press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20231024b.htm

10/24/2023

SR-23-9, “Principles for Climate-Related Financial Risk Management for Large Financial Institutions.”
Release: https://www.federalreserve.gov/supervisionreg/srletters/SR2309.htm

10/25/2023

Federal Reserve Board requests comment on a proposal to lower the maximum interchange fee that a large debit card
issuer can receive for a debit card transaction.
Press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20231025a.htm
(continued)

Supervision and Regulation

Table 4.5—continued
Date issued

Rulemaking/statement/guidance

11/13/2023

Agencies announce dollar thresholds for smaller loan exemption from appraisal requirements for higher-priced
mortgage loans.
Joint press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20231113a.htm

11/13/2023

Agencies announce dollar thresholds for applicability of truth in lending and consumer leasing rules for consumer credit
and lease transactions.
Joint press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20231113b.htm

11/17/2023

Federal Reserve Board announces pricing, effective January 2, 2024, for payment services the Federal Reserve Banks
provide to banks and credit unions, such as the clearing of checks, ACH transactions, and wholesale payment settlement
services.
Press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20231117a.htm

11/22/2023

Agencies extend comment period on proposed rule to require large banks to maintain long-term debt.
Joint press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20231122a.htm

11/27/2023

Federal Reserve Board announces annual indexing of reserve requirement exemption amount and low reserve tranche
for 2024.
Press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20231127a.htm

12/15/2023

SR-23-10, “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/SR2310.htm

12/20/2023

Agencies release annual asset-size thresholds under Community Reinvestment Act regulations.
Joint press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20231220a.htm

12/21/2023

SR-23-11, “Interagency Statement for Banks on the Issuance of the Beneficial Ownership Information Access Rule.”
Release: https://federalreserve.gov/supervisionreg/srletters/SR2311.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 2023, the Federal Reserve acted on 752 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 Federal 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 2023:
• providing payment services to depository and certain other institutions, including the new
FedNow® Service to support instant payments (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).

4,348.8

33.8
Commercial checks
collected by the
Reserve Banks

Advancing
Fedwire research
Funds
andtransfers
engagement

106.1
National Settlement
Service settlements

157.9

1,737.9

Commercial
ACH transfers

Fedwire Securities
transfers

110th Annual Report | 2023

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, providing a multilateral settlement service,
and operating a round-the-clock payment and settlement service to support instant payments in
the United States (see box 5.1).1
In response to the changing financial services landscape and the 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 2023, the Reserve Banks recovered 102.9 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 $107.6 million. Revenue from operations
totaled $111.5 million, resulting in a net income of $4.4 million. Reserve Banks handled 3.1 billion checks in 2023, a decrease of 6.7 percent from 2022 (see table 5.1). The average daily value
of checks collected by the Reserve Banks in 2023 was approximately $33.8 billion, a decrease of
5.6 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.

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.
1

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

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 services. 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 2014 through 2023, the Reserve Banks recovered 102.6 percent of the total priced services
costs, including the PSAF (see table A). In 2023, Reserve Banks recovered 106.7 percent of the total
priced services costs, including the PSAF (see table A). The Reserve Banks’ operating expenses and
imputed costs totaled $467.1 million. Revenue from operations totaled $507.3 million, resulting in a
net income from priced services of $40.1 million. In 2023, all services achieved full cost recovery. The
FedNow® Service revenue and expenses were excluded from the overall performance projections, as
new services may not initially have stable volumes, costs, and revenues.2
Table A. Priced services cost recovery, 2014–23
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

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

466.8r

462.8

7.2

470.0

99.3

2023
2014–23

507.3

467.1

8.4

475.5

106.7

4,501.7

4,332.4

56.3

4,388.7

102.6

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 $4,498.2 million and other income and expense (net) of $3.5 million.
2
For the 10-year period, includes operating expenses of $4,254.1 million, imputed costs of $27.6 million, and imputed income taxes
of $50.8 million.
3
Revenue from services divided by total costs. For the 10-year period, cost recovery is 100.7 percent, including the effect of accumulated other comprehensive income (AOCI) reported by the priced services under ASC 715, Compensation—Retirement Benefits.
r Revised.

According to the Accounting Standards Codification (ASC) Topic 715 (ASC 715), Compensation—Retirement Benefits, the Reserve
Banks recognized a $548.6 million reduction in equity related to the priced services’ benefit plans through 2023. 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.
The Board communicated in its 2019 Notice Federal Reserve Actions to Support Interbank Settlement of Instant Payments that it
expects the FedNow Service to achieve its first instance of long-run cost recovery outside the 10-year time frame typically applied to
mature services. See Federal Reserve Actions to Support Interbank Settlement of Instant Payments, 84 Fed. Reg. 39,297 (August 9,
2019), available at https://www.govinfo.gov/content/pkg/FR-2019-08-09/pdf/2019-17027.pdf.

110th Annual Report | 2023

Table 5.1. Activity in Federal Reserve priced services, 2021–23
Thousands of items, except as noted

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

2023

2022

2021

3,146,474

3,373,580

3,657,312

18,858,315

18,517,858

17,895,155

193,317

196,052

204,491

Percent change
2022–23

2021–22

−6.7

−8

1.8
−1

3
−4

582

586

−1

25,373

3,410

4,200

644

−19

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. Before 2023, the priced component of the Fedwire
Securities Service consisted of revenues, expenses, and volumes associated with the transfer of all non-Treasury securities. Starting in 2023,
the revenues, expenses, and volumes associated with the transfer of Treasury securities are also included in the priced component of
this service.

In 2023, the Reserve Banks recovered 108.8 percent of the total costs of their commercial ACH
services, including the related PSAF. The Reserve Banks’ operating expenses and imputed costs
totaled $167.3 million. Revenue from operations totaled $183.3 million, resulting in a net income
of $17.1 million. The Reserve Banks processed 18.9 billion commercial ACH transactions in
2023, an increase of nearly 1.8 percent from 2022 (see table 5.1). The average daily value of
FedACH transfers in 2023 was approximately $157.9 billion, an increase of 2.0 percent from the
previous year.

FedNow Service
The FedNow® Service, which launched in July 2023, is a new interbank service for instant payments, or payments that can be made at any hour of the day, every day of the year, with immediate
funds availability for receivers. Depository institutions that elect to join the service can offer new
payment capabilities to their consumer and business customers, for a wide variety of needs.
Instant payments provide tangible benefits for consumers and businesses, such as in cases
where rapid access to funds is critical or where just-in-time payments help manage cash flows in
bank accounts.
Within the first six months of its operation, by the end of 2023, over 300 diverse depository institutions across the country—including large banks, community banks, and credit unions—joined
the service. As expected, volume on the service in 2023 was modest as the first participants
adjusted to the new service. The number of participants and volume of transactions is expected to
grow steadily, and it will likely take several years before most consumers and businesses across
America have access to instant payment services. In the long run, instant payments will be a routine part of everyday commerce.

Payment System and Reserve Bank Oversight

The Federal Reserve invested $545 million to implement the FedNow Service. The number reflects
all costs of implementation, including a new cloud-based design to support secure and resilient
24x7x365 processing, integration with existing Federal Reserve account management systems to
enable ease of use for participants, and industry education and outreach to prepare stakeholders
who decide to adopt instant payments. In time, the Federal Reserve will regularly publish transaction volume information.

Fedwire Funds and National Settlement Services
In 2023, the Reserve Banks recovered 103.1 percent of their costs of the Fedwire Funds and
National Settlement Services, including the related PSAF. The Reserve Banks’ operating expenses
and imputed costs totaled $154.5 million. Revenue from operations totaled $161.5 million,
resulting in a net income of $9.1 million.

Fedwire Funds Service
The Fedwire Funds Service allows depository institutions and their customers to send or receive
domestic time-critical, and often high-value, payments using their balances at Reserve Banks to
transfer funds interbank in real time.
From 2022 to 2023, the number of Fedwire funds transfers originated by depository institutions
decreased 1.4 percent, to approximately 193 million (see table 5.1). The average daily value of
Fedwire funds transfers in 2023 was $4.3 trillion, an increase of 2.5 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 2023, the service processed settlement files for 13 local and national private-sector arrangements. The Reserve Banks processed 8,569 files that contained about 582,000 settlement
entries (see table 5.1). Settlement file activity in 2023 decreased 2.2 percent from 2022, while
settlement entry activity decreased 0.8 percent from 2022. The total value of settlement processed by NSS increased 0.4 percent, to $26.5 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. It also provides for the

110th Annual Report | 2023

issuance, safekeeping, and maintenance of those securities. The Reserve Banks provide transfer
services for securities issued by the U.S. Treasury, federal government agencies, governmentsponsored enterprises, and certain international institutions. Before 2023, the priced component
of this service consisted of revenues, expenses, and volumes associated with the transfer of all
non-Treasury securities. Starting in 2023, the revenues, expenses, and volumes associated with
the transfer of Treasury securities are also included in the priced component of this service.
In 2023, the Reserve Banks recovered 122.3 percent of the costs of their Fedwire Securities Service, including the related PSAF. The Reserve Banks’ operating expenses and imputed costs
totaled $39.8 million. Revenue from operations totaled $49.0 million, resulting in a net income of
$9.4 million. In 2023, the number of securities transfers processed via the service increased
approximately 644.2 percent from 2022, to approximately 25.4 million (see table 5.1).2 The
average daily value of all Fedwire Securities transfers in 2023 was more than $1.73 trillion, an
increase of approximately 27.1 percent from the previous year.
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 2023, the
total cash value of principal and interest payments was $30.2 trillion (an increase of 18.6 percent
from 2022).
The Fedwire Securities Service is the central securities depository for securities issued over the
Fedwire Securities Service. At the end of 2023, there was approximately $110 trillion (par value)
of Fedwire securities held in securities accounts maintained by the Reserve Banks as part of the
service, a 3.5 percent increase from 2022. At the end of 2023, there were 1.51 million unique
securities outstanding on the service, an increase of 3.8 percent from 2022.

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. These FedLine Solutions are
designed to meet the individual connectivity, security, and contingency requirements of depository
institution customers. In 2023, the Reserve Banks migrated customers toward more-contemporary

The large percentage increase as compared to 2022 is primarily due to the transfer of Treasury securities being
included in the priced component of this service for 2023 as described above. The inclusion creates some distortion
when comparing Fedwire Securities Service priced services activity before and after January 1, 2023, the date when
Treasury securities started being included in the priced component of the Fedwire Securities Service.

Payment System and Reserve Bank Oversight

solutions through legacy product price increases and discontinuation of certain legacy products
such as FedMail Fax.

Federal Reserve Intraday Credit
The Federal Reserve Board governs the use of Federal Reserve Bank intraday credit, also known
as daylight overdrafts.3 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 5.2.4

Figure 5.2. Aggregate daylight overdrafts 2007–23

200

Billions of dollars

150

100
Peak daylight overdrafts
Average daylight overdrafts

2007

2009

2011

2013

2015

2017

2019

2021

2023

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.

110th Annual Report | 2023

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 and the needs of commerce. Together, the
Board and Reserve Banks work to maintain the integrity of and confidence in Federal
Reserve notes.
In 2023, Board staff continued to work with the Reserve Banks and Bureau of Engraving and
Printing on several strategic initiatives to modernize the U.S. Currency Program over the next
decade. These updates are crucial to ensuring the ongoing security and availability of U.S. currency to meet public demand (see box 5.2).
The Reserve Banks distributed 30.9 billion Federal Reserve notes into circulation in 2023, a
1.0 percent decrease from 2022, and received 30.3 billion Federal Reserve notes from circulation, a 0.1 percent decrease from 2022. The decrease in payments and receipts resulted in a
decrease in net payments of 0.3 billion notes, or a 35.0 percent decrease from 2022. This
decrease was primarily attributable to lower net payments of $100 notes, resulting in the lowest
level of net payments since 2009. However, net payments were still positive, contributing to the
continued growth of currency in circulation. The value of Federal Reserve notes issued and outstanding at year-end 2023 totaled $2.3 trillion, a 1.7 percent increase from 2022. The year-overyear 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.5 In
2023, Reserve Banks distributed 44.4 billion coins into circulation, a 3.1 percent increase from
2022, and received 37.0 billion coins from circulation, a 16.0 percent increase from 2022.

Banknote Development
During 2023, 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

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.

Payment System and Reserve Bank Oversight

Box 5.2. U.S. Currency Program Initiatives
As the issuing authority for Federal Reserve notes, Board staff 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
The Federal Reserve and BEP have several strategic initiatives in process that, over the next 5 to 10
years, will modernize the U.S. Currency Program through new machinery and software, large facilities
construction and upgrades, and a new family of banknotes with improved security features. These
improvements will ensure the public continues to have confidence in the security and availability of U.S.
currency and that the Federal Reserve can respond to a range of demand scenarios.
The NextGen Program is a multiphase, multiyear program to replace the current fleet of Reserve Bank
banknote-processing equipment that is over 30 years old, with next-generation processing machines
and improved sensors for authenticating currency deposited at Reserve Banks. This equipment plays a
critical role in the Federal Reserve’s ability to maintain currency quality and integrity. As part of implementing the new machines, the Federal Reserve is assessing the potential strategic benefits of regionalizing some cash processing activities, which could offer increased resiliency, sustainability, and efficiency in operations.
Long-term planning for vault and processing capacities with a regional and national perspective is also
driving updates to individual facilities. The Federal Reserve Bank of New York’s East Rutherford Operations Center is being replaced because the facility is undersized for the scope of necessary operations.
The facility serves the New York metro area market, processes the highest volume of currency in the
Federal Reserve System, and is one of two key offices that services international distribution and circulation of U.S. currency and coin.
Further, the Miami Branch of the Federal Reserve Bank of Atlanta is the third-largest cash operation in
the System and serves as a contingency partner for the Federal Reserve Bank of New York’s international cash function. Despite its prominent role, Miami's vault is original to the building, which opened
in 1980; it is undergoing expansion and modernization to better meet current and future volume.
The current BEP Washington, D.C., production facility was built in 1913 and will be replaced with a
modern facility where the BEP intends to streamline production, keep building support costs low, and
meet physical security standards. The BEP will 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. 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.
Finally, the U.S. Currency Program is developing the next family of U.S. banknotes. The goal of the
development process is to produce banknotes that are secure, manufacturable, and functional in commerce for each denomination. The notes must be secure against identified and anticipated counterfeiting threats with easily recognizable security features that are authenticatable by domestic and international users and must be manufacturable to meet anticipated demand. The first denomination
planned for production will be the $10 note, with targeted issuance in 2026.
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.

110th Annual Report | 2023

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.

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 2023, the CEP’s resources and outreach initiatives expanded engagement with stakeholders
through professional education and training. Coverage on both traditional and social media contributed to increased web traffic and mobile app downloads, marking it as a year of significant
growth and engagement. These key stakeholder groups play a critical role in blocking counterfeit
notes from entering circulation. Given the international prominence of U.S. currency abroad, the
CEP hosted over 10 virtual outreach programs and five in-person events, garnering over 2,000
attendees from four continents (North America, South America, Asia, and Africa).
Uscurrency.gov ended 2023 with over 2.5 million web visitors and over 7.8 million pages viewed
on the website. Over 280,000 resources were downloaded from the website. In addition to website resource downloads, 2.3 million print resources were shipped out to the global public. CEP’s
mobile application was downloaded 216,445 times, a 643 percent increase from 2022.

External Engagements
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 collaborate to develop and deploy measures to combat digital counterfeiting. The Five Nations is a group of central banks, including the
Board, that work on common projects and share lessons learned in banknote development, distribution, public education, and circulation. 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.

Payment System and Reserve Bank Oversight

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.6 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.
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 $770.4 million, a decrease of $50.5 million, or 6.2 percent (see table 5.2), which is primarily attributable to a
decrease in pension expenses. The Treasury and other entities reimburse the Reserve Banks for
the expense of providing fiscal agency and depository services. Costs for Treasury-related programs accounted for 98.1 percent of expenses, and costs for other entities accounted for the
remaining 1.9 percent.

Table 5.2. Expenses of the Federal Reserve Banks for fiscal agency and depository services, 2021–23
Thousands of dollars

Agency and service

2023

2022

2021

Payment services

336,377

375,606

353,030

Financing and Treasury securities services

194,413

207,805

184,535

81,136

73,481

76,970

Technology infrastructure services

143,598

147,856

129,339

Total, Treasury

755,524

804,748

743,874

Department of the Treasury

Financial accounting and reporting services

Other entities
Total reimbursable expenses

14,849

16,130

24,595

770,374

820,878

768,469

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

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

110th Annual Report | 2023

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 $336.4 million in 2023, a
decrease of $39.2 million, or 10.4 percent. This is primarily attributable to Fiscal Service’s decision to discontinue the electronic tax collection program in September 2022. The programs that
contributed most to Reserve Bank expenses in 2023 were the Stored Value Card program and the
Pay.gov 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 2023,
Pay.gov processed 97.8 million online payments valued at $215.5 billion. In addition, the Reserve
Banks operated applications that facilitated the movement of $32.2 billion in commercial deposits
from financial institutions to the Treasury’s account at the Federal Reserve. The Reserve Banks
also processed and settled 186 million electronic payment transactions from private citizens and
businesses to pay U.S. government agencies, valued at $770.8 billion.

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 2023, the Treasury, supported by the Reserve Banks, conducted 428 auctions that resulted in
the Treasury awarding $22.0 trillion in wholesale Treasury marketable securities to investors. The

Payment System and Reserve Bank Oversight

Reserve Banks also supported the issuance and servicing of $427.5 billion in savings bonds and
marketable securities to investors.7
Reserve Bank expenses for financing and securities services were $194.4 million in 2023, a
decrease of $13.4 million, or 6.4 percent. This decrease is primarily attributable to a change in
approach, starting in 2023, whereby the revenues, expenses, and volumes associated with the
transfer of Treasury securities are now included in the priced component of the Fedwire Securities
Service.8

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.9
Reserve Bank expenses for financial accounting and reporting services were $81.1 million in
2023, an increase of $7.6 million, or 10.3 percent, primarily attributable to expanded efforts to
remediate technical debt, support cybersecurity measures, and migrate applications to a cloud
platform. The programs that contributed most to Reserve Bank expenses in 2023 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 allows federal agencies to manage intragovernmental financial transactions.

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.

8
9

Demand for Treasury products increased approximately 164.0 percent in 2023, primarily because of higher interest
rates for marketable securities.
This change is also noted in “Fedwire Securities Service” above.
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/.

110th Annual Report | 2023

In 2023, the Reserve Banks continued to build out and migrate applications to a cloud platform in
alignment with the Treasury’s cloud computing strategy.10 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 $143.6 million in 2023, a
decrease of $4.3 million, or 2.9 percent, primarily attributable to lower investment in on-premise
hosting environments as the Reserve Banks continue their 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 Government National Mortgage Association (Ginnie Mae).
Reserve Bank expenses for services provided to other entities were $14.9 million in 2023, a
decrease of $1.2 million, or 7.5 percent, primarily attributable to a change in a Federal Reserve
Financial Service fee.

Evolutions and Improvements to the System
In addition to its role as payment system operator, the Federal Reserve performs several other
functions in the payment system, including supervisor and regulator of financial institutions and
systemically important financial market utilities, researcher, and catalyst for payment system
improvements.

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.

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

In 2023, 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 methods11
• 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
For more information, see the Board’s Payments Research website at https://
www.federalreserve.gov/paymentsystems/payres_about.htm.

Digital Innovations Research
Federal Reserve staff conducts policy and technical research to provide perspectives on the future
of money and payments. Staff research covers digital assets, including stablecoins, crypto-assets,
and central bank digital currencies (CBDCs), as well as new technologies and business models to
improve cross-border payments or to facilitate the settlement of wholesale payment transactions.
Staff research and experimentation examines technological innovations and their associated
policy benefits, risks, and tradeoffs, as well as implications for Federal Reserve payment infrastructures.
The Federal Reserve collaborates closely with international counterparts on issues related to payments innovation. This collaboration 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 also engages with a wide variety of domestic
stakeholders, such as those from government, academia, and the private sector, to gather perspectives and expertise on innovations topics such as tokenization, distributed ledger technology,
application programming interfaces, and digital payments.

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

110th Annual Report | 2023

In October 2023, the Board requested comment on proposed revisions to Regulation II. Pursuant
to the Durbin Amendment to the Dodd-Frank Act, Regulation II is the Board’s rule concerning debit
card transactions. The proposal would lower the maximum interchange fee that a large debit card
issuer can receive for a debit card transaction. The proposal would also establish a regular process for updating the maximum amount every other year going forward.
In December 2022, Congress passed legislation requiring the Board to create and maintain a
public database of entities with access to Reserve Bank master accounts and services as well as
entities that submit requests for access moving forward. In June 2023, the Federal Reserve Board
introduced the Master Account and Services Database, a comprehensive and searchable resource
that discloses information on financial institutions’ access to master accounts and financial services provided by the Federal Reserve Banks. Detailed information on the guidelines used by
Reserve Banks in evaluating access requests can be found in the associated FAQ.

Other Improvements and Efforts
In addition to implementing the FedNow Service to support instant payments in 2023, 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 long-standing principles of fostering efficiency and safety, to depository institutions. The
Reserve Banks continued to enhance the resiliency and information security posture of wholesale
payment systems through Reserve Bank-led cyber initiatives to respond to environmental threats
and cyberthreats. In 2023, 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 System chief information officer, and in collaboration with leaders across
the System, the System IT Strategic Plan was refreshed in 2023 for 2024–26 to set priorities,
align IT direction and resources, and ensure that IT leaders and team members are working toward

Payment System and Reserve Bank Oversight

a common set of goals. The highest-level goals of the plan—security, agility, and value—guide a
set of priorities focused on operating secure and reliable systems, accelerating business outcomes, and enhancing the business-driven digital experience and collaboration. A key enabler in
achieving these goals is a multiyear datacenter modernization effort formalized and launched in
2023, which aims to modernize both infrastructure and application delivery.
The Reserve Banks remained vigilant with respect to cybersecurity posture, investing in riskmitigation 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 high-priority 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 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 2023 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 assessing options for replacing 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

See “Federal Reserve Banks Combined Financial Statements” at https://www.federalreserve.gov/aboutthefed/auditedannual-financial-statements.htm.

110th Annual Report | 2023

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 2023 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
In 2023, 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 $0.7 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 2023, 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, National Information Technology, and Federal Reserve Financial Services. 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.

In February 2024, all holdings within the two LLCs consolidated in the statements of the Federal Reserve Bank of New
York were liquidated, final obligations were satisfied, and final distributions of proceeds were made. The two entities
were subsequently terminated in March 2024.
In addition, KPMG audited 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, and the Consumer Financial Protection Bureau.
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.

Payment System and Reserve Bank Oversight

The Board also reviews the System Open Market Account (SOMA) and foreign currency holdings
annually to
• determine whether the Federal Reserve Bank of New York, 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.

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 2023, income was $175.1 billion, compared with $170.7 billion in 2022; expenses totaled
$289.5 billion, compared with $111.9 billion in 2022; and net loss before providing remittances
to the Treasury totaled $114.3 billion, compared with net income of $58.8 billion in 2022.
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 a period when earnings are not sufficient to provide for those costs, a deferred asset is recorded and represents the amount of net
excess earnings Reserve Banks will need to realize in the future before remittances to the
Treasury resume. In the fall of 2022, most Reserve Banks suspended weekly remittances to the
Treasury and began to accumulate a deferred asset during 2022 and continued through 2023. As
Reserve Banks determine weekly remittances on an individual basis, some continued to periodically remit excess earnings to the Treasury during 2022 and 2023.15 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 the Reserve Banks for 2023
and 2022. Appendix G of this report, “Statistical Tables,” provides more detailed information on

During 2023, the Reserve Banks transferred $670 million to the Treasury.

110th Annual Report | 2023

the Reserve Banks, including the consolidated LLCs.16 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 2023, table G.10 shows a condensed statement for each Reserve Bank for the years 1914 through
2023, 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,
2023 and 2022
Millions of dollars

Item
Current income

2023

2022

175,136

170,684

Loan interest income

10,438

154

SOMA interest income

164,087

169,979

Other current income1

611

551

Net expenses

286,480

107,850

Operating expenses

5,648

5,373

Reimbursements

−812

−846

548

946

Interest paid on depository institutions deposits and others

176,755

60,405

Interest expense on securities sold under agreements to repurchase

104,341

41,967

System pension service cost

Other expenses
Current net income
Net additions to (deductions from) current net income

−111,344

62,834

−130

−1,248

Treasury securities (losses), net

−32

−5

Federal agency and government-sponsored enterprise mortgage-backed securities (losses), net

−56

−234

Foreign currency translation (losses), net

−67

−1,762

Other additions or deductions

753

2,912

2,791

For Board expenditures

1,144

1,015

For currency costs

1,047

1,054

Assessments by the Board of Governors2

For Consumer Financial Protection Bureau costs

Reserve Bank net (loss) income from operations
Consolidated variable interest entities: Income, net

721

722

−114,386

58,795

1,124

1,742

−1,038

−1,701

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

−114,300

58,836

Earnings remittances to the Treasury

−116,063

59,446

1,763

−610

Other comprehensive (loss) gain

−276

1,819

Comprehensive income

1,487

1,209

−114,576

60,655

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

Net income (loss) after providing for remittances to the Treasury

Total distribution of net income (loss)
Dividends on capital stock

1,487

1,209

670

76,031

Deferred asset (increase) decrease

−116,733

−16,585

Earnings remittances to the Treasury, net

−116,063

59,446

Remittances transferred to the Treasury4

1
2

3
4

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 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 any amount necessary to maintain
surplus, the Reserve Banks suspend weekly remittances to the Treasury and record a deferred asset.

110th Annual Report | 2023

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.17
Table 5.4 summarizes the average daily assets (liabilities), current income (expenses), and
average interest rate of the SOMA holdings for 2023 and 2022.

Lending
In 2023, 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 $104,657 million and 6.00 percent.
• Bank Term Funding Program (BTFP) was $108,723 million and 4.71 percent.
• Paycheck Protection Program Liquidity Facility (PPPLF) was $7,329 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 of the Federal Reserve Banks, 2023 and 2022
Millions of dollars, except as noted

Item

Average daily assets (+)/liabilities (–)
2023

Year-overyear change

2022

Average interest rate
(percent)

Current income (+)/expense (–)
2023

Year-overyear change

2022

2023

2022

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

3,925

3,924

195

4.96

2.25

5,335,243

5,937,386

−602,143

106,479

115,872

−9,393

2.00

1.95

2,593,972

2,760,954

−166,982

57,017

53,959

3,058

2.20

1.95

2,570

2,597

−27

131

133

−2

5.11

18,399

18,504

−105

246

−3

249

1.34

−0.01

354

666

−312

5.32

2.68

−20

0.00

7,954,464

8,720,129

−765,665

164,087

169,979

−5,892

2.06

1.95

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

−1,747,804

−1,997,187

249,383

−87,341

−36,655

−36,318

5.00

1.84

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

−336,897

−290,553

−46,344

−17,000

−5,312

−5,235

5.05

1.83

−2,084,701

−2,287,740

203,039

−104,341

−41,967

−41,553

−2

−834

832

n/a

Total SOMA liabilities

−2,084,703

−2,288,574

203,871

−104,341

−41,967

−41,553

5.01

1.83

Net SOMA holdings

5,869,761

6,431,555

−561,794

59,746

128,011

−47,445

1.02

1.99

Total securities sold under
agreements to repurchase
Other SOMA liabilities6

5.01
n/a

1.83
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

110th Annual Report | 2023

Pro Forma Financial Statements for Federal Reserve
Priced Services
Table 5.5. Pro forma balance sheet for Federal Reserve priced services, December 31, 2023 and 2022
Millions of dollars

Item

20221

2023

Short-term assets (note 1)
Imputed investments

556.3

539.0

47.2

44.0

0.1

0.6

Prepaid expenses

37.8

44.8

Items in process of collection

67.6

72.3

Receivables
Inventory

Total short-term assets

709.0

700.8

Long-term assets (note 2)
Premises

94.7

103.2

Furniture and equipment

34.9

35.4

Leases, leasehold improvements, and long-term
prepayments

72.5

80.3

Prepaid pension costs

115.1

61.0r

Deferred tax asset

130.4

149.5

Total long-term assets
Total assets

447.6

429.5r

1,156.6

1,130.3r

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

623.8

611.3

Short-term debt

36.2

52.2

Short-term payables

48.9

37.3

Total short-term liabilities

709.0

700.8

Long-term liabilities (note 3)
Long-term debt

102.2

85.3r

Accrued benefit costs

274.7

283.6r

Total long-term liabilities
Total liabilities
Equity (including accumulated other comprehensive loss of
$548.6 million and $590.0 million at December 31,
2023 and 2022, respectively)
Total liabilities and equity (note 3)

376.9

368.9r

1,085.9

1,069.7r

70.7

60.6r

1,156.6

1,130.3r

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.
1
The pro forma balance sheet for 2022 has been revised to acknowledge the pension balance as an asset. This was incorrectly identified as
a liability in 2022.
r Revised.

Payment System and Reserve Bank Oversight

Table 5.6. Pro forma income statement for Federal Reserve priced services, 2023 and 2022
Millions of dollars

Item

2023

2022

Revenue from services provided to depository institutions
(note 4)

505.3

466.7

Operating expenses (note 5)

462.7

461.4

42.5

5.3

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

1.2

Interest on float

−11.6

Sales taxes

0.0
−3.5

5.3

−5.1

Income from operations after imputed costs

3.9

0.4

47.7

4.9

Other income and expenses (note 7)
Investment income

2.0

0.1

Income before income taxes
Imputed income taxes (note 6)
Net income
Memo: Targeted return on equity (note 6)

49.7

5.0

9.6

1.0

40.1

4.0

8.4

7.2

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, 2023
Millions of dollars

Total

Commercial
check collection

Commercial
ACH

Fedwire
funds

Fedwire
securities

Revenue from services (note 4)

505.3

111.5

183.3

161.5

49.0

Operating expenses (note 5)1

462.7

102.6

174.2

149.1

36.9

Income from operations

42.5

8.9

9.1

12.4

12.1

Imputed costs (note 6)

−5.1

3.7

−11.5

2.1

0.5

Income from operations after imputed costs

47.7

5.2

20.6

10.3

11.6

2.0

0.3

0.5

1.0

0.1

49.7

5.5

21.2

11.3

11.7

9.6

1.1

4.1

2.2

2.3

40.1

4.4

17.1

9.1

9.4

8.4

1.3

2.3

4.3

0.5

106.7

102.9

108.8

103.1

122.3

Item

Other income and expenses, net (note 7)
Income before income taxes
Imputed income taxes (note 6)
Net income
Memo: Targeted return on equity (note 6)
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.

110th Annual Report | 2023

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 19.3 percent for 2023 and 20.3 percent for 2022.
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 2023 equity
is imputed at 6.1 percent of total assets and 11.4 percent of risk-weighted assets, and 2022
equity is imputed at 5.4 percent of total assets and 10.0 percent of risk-weighted assets.18
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

The 2022 imputed equity has been revised from 5.1 to 5.4.

Payment System and Reserve Bank Oversight

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
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 2023 and 2022, there were sufficient assets and equity such that additional imputed balances were not required.
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
$115.1 million in 2023 and $61.0 million in 2022.19 The change in the funded status of the pension and other benefit plans resulted in a corresponding increase in accumulated other comprehensive loss of $41.5 million in 2023.

(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 $6.8 million in 2023 and $6.2 million in 2022. 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 $30.3 million in 2023 and $64.1 million in 2022. Operating expenses also
include the nonqualified service costs of $2.1 million in 2023 and $4.6 million in 2022. In 2019
Reserve Banks adopted an update to ASC 715 requiring disaggregation of other components of
19

The prior year pension asset has been restated from $68.2 million to $61.0 million to include Board pension asset
amounts, which were inadvertently omitted.

110th Annual Report | 2023

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
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
19.3 percent for 2023 and 20.3 percent for 2022.

(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 2023 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.20
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 Service 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
2023 and 2022, in millions of dollars:21
Daily average recovery of actual float
Total float
Float not related to priced services1
Float subject to recovery through per-item fees
1

2023

2022

−239.9

−219.4

−1.9

−15.4

−228.0

−204.0

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

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.
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

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.
Certain ACH funding requirements and check products generate credit float; this float has been
subtracted from the cost base subject to recovery in 2023 and 2022.

(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 benefit from consumer and
community perspectives. The Board promotes consumer protection, financial inclusion, and community development through targeted work in supervision, regulatory policy, research and analysis,
and public engagement (see figure 6.1). This section discusses the Federal Reserve’s key consumer and community affairs activities during 2023:
• 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
• 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 2023. 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 and CRA

110th Annual Report | 2023

Figure 6.1. The Federal Reserve advances consumer and community mandates through inclusive
rulemaking, research, and engagement
See box 6.1 for more information on how the Federal Reserve prioritized financial inclusion through responsive regulation and timely research, events, and outreach.

The Board, the Federal Deposit
Insurance Corporation, and the
Office of the Comptroller of the
Currency jointly issued a final rule
to strengthen and modernize CRA
regulations. The final rule reflects
feedback from stakeholders.

The Community Development
Research Seminars and ongoing
research helped inform policy
and practice around affordable
housing, student and small
business lending, and
expiration of pandemic
support programs.

The 10th annual SHED report
focused on topics including
emergency savings, inflation
experiences, and the labor market.
The Community Advisory Council
shared perspectives on how
economic conditions affected LMI
communities.

Publications and events
examined fair lending and
the provision and consumer
protection risks of
small-dollar lending and
the automobile finance
market.

Note: CRA refers to the Community Reinvestment Act. SHED refers to the Board’s annual Survey of Household Economics and Decisionmaking. LMI refers to low- and moderate-income levels.

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 works 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 risk-management
programs.

Consumer and Community Affairs

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
within regulated entities.1
In 2023, the Board’s regulatory efforts supported financial institutions by clarifying examination
guidelines and procedures.2 In April, the Federal Reserve and its Federal Financial Institutions
Examination Council (FFIEC) partners revised the guide to Home Mortgage Disclosure Act (HMDA)
reporting.3 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. The
Reserve Banks completed 365 examinations in 2023. The breakdown of consumer compliance
examinations completed by Reserve Banks in 2023 included 184 consumer compliance examinations of state member banks and seven examinations of foreign banking organizations. There were
no consumer compliance examinations of Edge Act corporations or agreement corporations
in 2023.4

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 https://www.federalreserve.gov/supervisionreg/caletters/caletters.htm for consumer compliance supervisory guidance issued in 2023.
See consumer affairs (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.

110th Annual Report | 2023

Community Reinvestment Act Performance Evaluation and Regulations
The CRA requires that the Federal Reserve Board and the other federal banking agencies assess a
bank’s record of meeting the credit needs of its entire community, including low- and moderateincome neighborhoods, consistent with safe and sound operations. To carry out this mandate and
to encourage banks to help meet the credit needs of the local communities in which they are chartered, the Federal Reserve
• examines state member banks and certain other financial institutions 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
• 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 and certain other institutions during performance evaluations conducted by staff at the 12 Reserve
Banks. During the 2023 reporting period, the Reserve Banks completed 174 CRA examinations of
state member banks. Of those banks examined, 23 were rated “Outstanding,” 151 were rated
“Satisfactory,” none were rated “Needs to Improve,” and none were rated “Substantial NonCompliance.”
In addition to CRA examinations, the Board and other federal banking agencies continued ongoing
efforts to modernize the CRA regulations. After analyzing public comments on the interagency
notice of proposed rulemaking issued in May 2022, the agencies issued a final rule in
October 2023.6 See box 6.1 for more information about the CRA final rule.

Consumer Compliance Enforcement Activities
Fair Lending and UDAP Enforcement
The Federal Reserve is committed to ensuring that the institutions it supervises comply fully with
the federal fair lending and consumer protection laws, including 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 exer5

For more information on various community development activities of the Federal Reserve System, see
https://www.fedcommunities.org/.
See https://www.federalreserve.gov/newsevents/pressreleases/bcreg20231024a.htm and Community Reinvestment
Act, 89 Fed. Reg. 6,574 (February 1, 2024), https://www.govinfo.gov/content/pkg/FR-2024-02-01/pdf/202325797.pdf. Additional information about the final rule is available on the Board’s website at https://
www.federalreserve.gov/consumerscommunities/community-reinvestment-act-final-rule.htm.

Consumer and Community Affairs

cised, 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 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
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, if the Board has reason to believe that a creditor has engaged in a
pattern or practice of discrimination in violation of 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 2023, the Board referred one fair lending matter to the DOJ. The matter involved a pattern or
practice of discrimination 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 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 Fed-

110th Annual Report | 2023

eral 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 area of supervision, 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.
The Federal Reserve’s outreach included the annual Board-sponsored Fair Lending Interagency
Webinar, which attracted more than 6,300 registrants in 2023. See box 6.1 for more information
about fair lending topics covered at the event.7 The Federal Reserve also published an article in
Consumer Compliance Outlook sharing information about the most frequent compliance violations
in 2022, as well as supervisory observations regarding the assessment of nonsufficient funds
fees on represented transactions.8

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 2023, the Federal Reserve issued one order, assessing approximately $2,945,500 in civil
money penalties against a state member bank to address flood insurance regulatory violations as
well as unsafe and unsound practices in its flood insurance compliance program.9 In accordance
with statutory requirements, the state member bank paid a $58,000 civil money penalty to the
Federal Emergency Management Agency for deposit into the National Flood Mitigation Fund and a
$2,887,500 civil money penalty to the U.S. Department of the Treasury.

7
8
9

To view the webinar, see https://consumercomplianceoutlook.org/outlook-live/archives/.
For more information and to access the publications, see https://consumercomplianceoutlook.org/.
To view press releases for enforcement actions, see https://www.federalreserve.gov/newsevents/pressreleases.htm.

Consumer and Community Affairs

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.10
The Board provides information on its actions associated with these merger and acquisition transactions, issuing press releases and Board Orders for each.11 The Federal Reserve also publishes
semiannual reports that provide pertinent information on applications and notices filed with the
Federal Reserve.12 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.

Coordination with Other Agencies
Coordination with the Consumer Financial Protection Bureau
During 2023, 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 Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (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 among the prudential regulators and the CFPB. The regulators work
cooperatively to share exam schedules for covered institutions and covered activities to plan
10

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.
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.

110th Annual Report | 2023

Box 6.1. Supporting Consumer Protection and Community
Development
During 2023, economic developments posed unique opportunities and challenges for communities and
financial institutions. The termination of the COVID-19 public health emergency in May concluded some
federal and state benefit programs, and consumers grappled with higher prices caused by recent inflation. Meanwhile, ongoing changes in the banking industry—investment in machine learning and thirdparty fintech partnerships—continued to shape how many financial institutions deliver products
and services.
The Board’s Division of Consumer and Community Affairs (DCCA) developed regulations and policy guidance to support consumer protection and financial inclusion. DCCA staff also engaged in research,
policy analysis, and outreach that provided insight into economic and financial developments and key
consumer topics, including housing, small-dollar loans, and auto lending.

Modernizing the Community Reinvestment Act Regulations
In October, the Board, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of
the Currency jointly issued a final rule to strengthen and modernize Community Reinvestment Act (CRA)
regulations to better achieve the purposes of the law.1 The CRA is a landmark law enacted in 1977 to
address systemic inequities in access to credit by encouraging banks to help meet the credit needs of
the communities in which they do business, with a focus on low- and moderate-income (LMI) communities, consistent with safe and sound operations. The CRA final rule accomplishes key objectives by
adapting regulations to changes in the banking industry, including the expanded role of mobile and
online banking; providing greater clarity and consistency in the application of the regulations; and tailoring performance standards to account for differences in bank size and business models.

Promoting Sound Consumer Risk-Management Practices among Banks
DCCA’s consumer protection activities emphasized fair lending as a key aspect of consumer compliance and provided practical tips to support sound risk-management practices. At the 2023 Fair Lending
Interagency Webinar, the Board discussed legal protections against disability discrimination and ways to
identify instances of disability discrimination.2 The event also included information about algorithmic
bias, redlining, appraisal discrimination, and other topics. To increase transparency and foster compliance, the Board launched an annual feature in Consumer Compliance Outlook to provide information
about the most frequent violations of consumer law cited by the Federal Reserve. DCCA also published
articles that discuss the root causes of those violations and provide examples of sound practices institutions can use to mitigate compliance risk.3

Conducting Research and Analysis of Emerging Consumer Issues
With household finances facing challenging headwinds from rising costs and other factors, the Board
offered insight into trends in consumer data and products. Released in May, the Economic Well-Being of
U.S. Households in 2022 report analyzed responses to the 10th annual Survey of Household Economics
and Decisionmaking (SHED).4 This year, SHED included questions about emergency expenses, the
labor market, inflation experiences, returns to education, housing situations, and retirement savings.
Board staff also participated in a Federal Reserve Connecting Communities webinar discussing SHED
findings.5
(continued)
1

2
3
4
5

See https://www.federalreserve.gov/consumerscommunities/community-reinvestment-act-final-rule.htm for materials related to the
CRA final rule, including a fact sheet, interagency summary of key objectives, Board member statements, and additional resources.
See https://www.consumercomplianceoutlook.org/Outlook-Live/2023/2023-Fair-Lending-Interagency-webinar/.
See https://www.consumercomplianceoutlook.org/.
See https://www.federalreserve.gov/consumerscommunities/shed.htm.
See https://fedcommunities.org/connecting-communities-economic-well-being-households-2022/.

Consumer and Community Affairs

Box 6.1—continued
Other publications focused on whether and how credit products serve consumers’ needs. A Consumer
& Community Context article released in July explored how new data sources and technologies have
enabled some banks and nonbanks to offer small-dollar loan products to consumers. A subsequent
issue in November delved into auto finance, considering the post-pandemic state of the market and
potential consumer risks.6 DCCA economists also published papers exploring current concerns such as
workers’ financial well-being, student debt, economic hardships related to the termination of emergency
food assistance, income trends through the pandemic, and women’s exits from the workforce during
COVID-19.7

Engaging with Consumer and Community Perspectives
The Board hosted outreach meetings and events to assess the post-pandemic economy and issues
affecting consumers, including credit access for small businesses and housing costs. The Board’s
Community Advisory Council provided insight into how LMI communities fared as COVID-19 benefits
wound down and lending conditions tightened.8 In October, the Board and the Federal Reserve Bank of
Richmond held a Fed Listens event in which business, civic, and nonprofit leaders shared perspectives
on how the local economy has fared since the pandemic.9 The Federal Reserve’s 2023 Community
Development Research Seminar Series, Keys to Opportunity in the Housing Market, explored evidencebased approaches to promoting an inclusive housing market, including a session that examined challenges and opportunities in the affordable housing rental market.10
6

See https://www.federalreserve.gov/publications/consumer-community-context.htm.
See Kabir Dasgupta and Zofsha Merchant, “Understanding Workers’ Financial Wellbeing in States with Right-to-Work Laws,” FEDS
Notes (Washington: Board of Governors of the Federal Reserve System, September 8, 2023),
https://doi.org/10.17016/2380-7172.3372; Jacob Lockwood and Douglas Webber, “Non-Completion, Student Debt, and Financial
Well-Being: Evidence from the Survey of Household Economics and Decisionmaking,” FEDS Notes (Washington: Board of Governors
of the Federal Reserve System, August 21, 2023), https://doi.org/10.17016/2380-7172.3371; Kabir Dasgupta and Alexander
Plum, “Termination of SNAP Emergency Allotments, Food Sufficiency, and Economic Hardships,” Finance and Economics Discussion
Series 2023-046 (Washington: Board of Governors of the Federal Reserve System, July 2023), https://doi.org/10.17016/
FEDS.2023.046; Katherine Lim and Mike Zabek, “Women’s Labor Force Exits during COVID-19: Differences by Motherhood, Race,
and Ethnicity,” Finance and Economics Discussion Series 2021-067r1 (Washington: Board of Governors of the Federal Reserve
System, July 2023), https://doi.org/10.17016/FEDS.2021.067r1; and Jeff Larrimore, Jacob Mortenson, and David Splinter,
“Earnings Business Cycles: The Covid Recession, Recovery, and Policy Response,” Finance and Economics Discussion Series
2023-004 (Washington: Board of Governors of the Federal Reserve System, January 2023), https://doi.org/10.17016/
FEDS.2023.004.
8
See https://www.federalreserve.gov/aboutthefed/cac.htm for more information about the Community Advisory Council.
9
See https://www.federalreserve.gov/fedlistens.htm.
10
See https://fedcommunities.org/community-development-research-seminar-series/2023-keys-opportunity-housing-market/.
7

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.13 In addition, the Federal Reserve participates in the Joint Task Force on Fair Lending, composed of all the prudential regulators, the

For more information, see https://www.ffiec.gov/.

110th Annual Report | 2023

CFPB, the DOJ, the Federal Housing Finance Agency, the Federal Trade Commission, and the
Department of Housing and Urban Development. Staff also participate in the Interagency Task
Force on Property Appraisal and Valuation Equity, an initiative to address bias in home appraisals.
In January 2023, the Board issued a statement in coordination with the FDIC, the OCC, the CFPB,
and the NCUA stating that, in response to a 2022 U.S. District Court for the District of Columbia
decision vacating a portion of a May 2020 Regulation C rulemaking, the Board did not intend to
cite HMDA violations or take enforcement action for not collecting or reporting closed-end mortgage loan data originated in 2022, 2021, or 2020 by Federal Reserve-supervised financial institutions that meet Regulation C’s other coverage requirements and originated at least 25 closed-end
mortgage loans in each of the two preceding calendar years but fewer than 100 closed-end mortgage loans in either or both of the two preceding calendar years.14 In April 2023, the Board joined
the FDIC, the OCC, the CFPB, and the NCUA in an interagency statement reminding supervised
institutions that U.S. dollar (USD) LIBOR panels would end on June 30, 2023, and reiterating
expectations that institutions with USD LIBOR exposure should complete their transition of
remaining LIBOR contracts away from LIBOR as soon as practicable.15 The Board, the OCC, and
the FDIC issued a final rule modernizing the CRA regulations in October 2023.

Outreach
The Federal Reserve maintains a comprehensive public outreach program to promote consumer
protection, financial inclusion, and community reinvestment. During 2023, the Board continued to
enhance its program, delivering timely, relevant compliance information to the banking industry,
experienced examiners, and other regulatory personnel.
In 2023, two issues of Consumer Compliance Outlook were released, discussing regulatory and
supervisory topics of interest to compliance professionals.16 This publication is distributed to
state member banks as well as to BHCs and savings and loan holding companies supervised by
the Federal Reserve, among other subscribers. In addition, the Federal Reserve offered one Outlook Live seminar, the 2023 Fair Lending Interagency Webinar, discussed in box 6.1.17

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

14
15
16
17

See https://www.federalreserve.gov/supervisionreg/caletters/caltr2301.htm.
See https://www.federalreserve.gov/supervisionreg/srletters/SR2302.htm.
See https://www.consumercomplianceoutlook.org/2023/second-third-issue/top-compliance-violations/.
For more information and to access the webinar, see https://consumercomplianceoutlook.org/outlook-live/archives/.

Consumer and Community Affairs

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 noncomplex community bank.18 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 2023, six 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 (CPD) 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 CPD 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 2023, the System continued to offer Rapid Response and similar 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 Response sessions with an exclusive consumer compliance focus were designed, developed, and presented to System staff during 2023. An additional 14 CPD offerings were delivered
that addressed a broader range of supervisory issues, including consumer compliance topics.

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
18

An overview of the Federal Reserve System’s Examiner Commissioning Program for assistant examiners is set forth in
supervision and regulation (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.

110th Annual Report | 2023

Table 6.1. Complaints against state member
banks and selected nonbank subsidiaries of
bank holding companies by product and
subject of complaint, 2023
Product/subject of complaint

Percent

Deposit/bank products

Funds availability not as expected

Deposit error resolution

Fraud/forgery

Restricted/blocked accounts

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 2023, FRCH processed 31,279

Other

cases. Of these cases, 18,804 were inquiries

Credit card accounts

and the remainder (12,475) were complaints,

Inaccurate credit reporting

with most cases received directly from con-

Fraud/forgery

sumers and involving financial institutions

Account closure

Request to validate the debt owed

other than state member banks supervised by
the Federal Reserve. Approximately 18 per-

Other

Prepaid accounts

cent of cases were referred to the Federal

Inability to withdraw funds on the card

Reserve from other federal and state

Restricted/blocked accounts

agencies.

Fraud/forgery

Error resolution

Consumers contacted FRCH by a variety of dif-

Other

ferent channels: 59 percent of the FRCH con-

Nondeposit & bank services

sumer contacts occurred by telephone, and

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.

39 percent of complaint and inquiry submissions were made electronically (via email,
online submissions, and fax). The online form
page received 49,172 visits during the year.

Consumer Complaints
Complaints against Federal Reserve-regulated
entities totaled 6,115 in 2023. Of the total,

95 percent (5,790) were closed, and 5 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 2023, 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. Twenty-seven complaints alleging credit
discrimination based on prohibited borrower traits or rights were received in 2023. Twenty-two dis-

Consumer and Community Affairs

crimination 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 borrower. The remainder were related to handicap and public assistance income. Of the closed
complaints alleging credit discrimination based on a prohibited basis in 2023, there was one with
a violation specific to the adverse action notice and one specific to credit reporting. However, they
were not related to illegal credit discrimination.
In 46 percent of investigated complaints against Federal Reserve-regulated entities, evidence
reviewed did not reveal an error or violation. Of the remaining 54 percent of investigated complaints, 13 percent were deemed regulatory concerns or violations of law; 12 percent were identified errors that were corrected by the bank; and the remainder included matters involving litigation, externally and internally referred complaints, 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 2023, the Board continued to administer its regulatory responsibilities with respect to
certain entities and specific statutory 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.

Updating Annual Indexes for Consumer Regulations
Annual Indexing of Exempt Consumer Credit and Lease Transactions
In November 2023, 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 2024 for determining
exempt consumer credit and lease transactions will increase from $66,400 in 2023 to $69,500
for 2024. 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.19

Annual Indexing of Threshold for Small Loan Exemption from Appraisal Requirements for
Higher-Priced Mortgage Loans
In November 2023, 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
$31,000 for 2023 to $32,400 for 2024.20 The Dodd-Frank Act amended TILA to add special
19
20

For more information, see https://www.federalreserve.gov/newsevents/pressreleases/bcreg20231113b.htm.
For more information, see https://www.federalreserve.gov/newsevents/pressreleases/bcreg20231113a.htm.

110th Annual Report | 2023

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 2023, 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.21
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 thresholds 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 4.06 percent increase in the CPI-W for the period ending in November 2023, 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 $1.564 billion.
• Intermediate small bank means a small bank with assets of at least $391 million as of
December 31 of both of the prior two calendar years and less than $1.564 billion as of
December 31 of either of the prior two calendar years.
These asset-size threshold adjustments took effect on January 1, 2024.

Consumer Research and Analysis of Emerging Issues
and Policy
Throughout 2023, the Board analyzed emerging issues in consumer financial services practices in
order to understand their implications for consumers and the Federal Reserve’s responsibilities.

For more information, see https://www.federalreserve.gov/newsevents/pressreleases/bcreg20231220a.htm.

Consumer and Community Affairs

Researching Issues Affecting Consumers and Communities
In 2023, 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 an annual survey of consumers to gather data on their experiences and perspectives through the Survey of Household Economics and Decisionmaking. The SHED collects
information to better understand household financial activity and perceptions.
Results of the Board’s 10th annual SHED were published in the Economic Well-Being of U.S. Households in 2022 report, released in May 2023.22 The survey results reflected the self-reported financial conditions of over 11,000 respondents at the end of 2022.
The survey asked respondents about specific aspects of their financial lives, including:
• employment
• expenses and experiences with inflation
• income and savings
• economic preparedness
• banking and credit
• housing and living arrangements
• higher education and student loans
• retirement
The 2022 survey results illustrated the challenges experienced by U.S. families from the elevated
rate of inflation at that time. It found that self-reported financial well-being had fallen sharply and
was among the lowest observed since 2016. Similarly, the share of adults who said that they
spent less than their income in the month before the survey fell in 2022 from the prior year, while
the share who said that their credit card debt increased rose. Among adults who were not retired,
the survey also showed a decline in the share who felt that their retirement savings plan was on
track, suggesting some concerns about people’s future financial security.

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

110th Annual Report | 2023

The report also highlights several new topics added to the survey in 2022, such as actions taken
in response to higher prices, financial buffers, and worker autonomy. These new questions provide
additional context on the experiences of U.S. adults in navigating higher prices in the marketplace.
Additionally, the report continued to include information on emerging financial products including
cryptocurrencies and “Buy Now, Pay Later” products.
The survey and report also 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 2022.
In addition to fielding and analyzing these surveys, researchers 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. In 2023,
research staff published seven working papers and notes in the Board’s Finance and Economics
Discussion Series, had 12 papers accepted for publication at economics journals, and released
several additional working papers in the International Finance Discussion Papers series.23 See
box 6.1 for more insight into Board research publications.

Community Development Research Seminar Series
In 2023, the Board and the Reserve Banks continued the Federal Reserve System Community
Development Research Seminar Series with the theme, “Keys to Opportunity in the Housing
Market.” 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.

For working papers by Division of Consumer and Community Affairs researchers in the Finance and Economics Discussion Series, see Alex Combs, John Foster, and Erin Troland, “The Role of Property Assessment Oversight in School
Finance Inequality,” Finance and Economics Discussion Series 2023-024 (Washington: Board of Governors of the Federal Reserve System, May 2023), https://doi.org/10.17016/FEDS.2023.024; Kabir Dasgupta and Zofsha Merchant,
“Understanding Workers’ Financial Wellbeing in States with Right-to-Work Laws,” FEDS Notes (Washington: Board of Governors of the Federal Reserve System, September 8, 2023), https://doi.org/10.17016/2380-7172.3372; Kabir
Dasgupta and Alexander Plum, “Termination of SNAP Emergency Allotments, Food Sufficiency, and Economic Hardships,”
Finance and Economics Discussion Series 2023-046 (Washington: Board of Governors of the Federal Reserve System,
July 2023), https://doi.org/10.17016/FEDS.2023.046; Jacob Lockwood and Douglas Webber, “Non-Completion, Student Debt, and Financial Well-Being: Evidence from the Survey of Household Economics and Decisionmaking,” FEDS
Notes (Washington: Board of Governors of the Federal Reserve System, August 21, 2023), https://doi.org/10.17016/
2380-7172.3371; Zofsha Merchant and Erin Troland, “Did the Pandemic Change Who Became Behind on Rent? Characteristics of Renters Behind on Rent Before and After the Pandemic Onset,” FEDS Notes (Washington: Board of Governors
of the Federal Reserve System, April 18, 2023), https://doi.org/10.17016/2380-7172.3292; Ben Ost, Weixiang Pan,
and Douglas Webber, “College Networks and Re-employment of Displaced Workers,” Finance and Economics Discussion
Series 2023-043 (Washington: Board of Governors of the Federal Reserve System, June 2023), https://doi.org/
10.17016/FEDS.2023.043; and Daniel Gorin, Sarah Gosky, and Michael Suher, “Empirical Assessment of SR/CA SmallDollar Lending Letter Impact,” FEDS Notes (Washington: Board of Governors of the Federal Reserve System, July 28,
2023), https://doi.org/10.17016/2380-7172.3329.

Consumer and Community Affairs

The seminars featured keynote remarks by Governor Michelle Bowman and Federal Reserve Bank
of Boston Assistant Vice President Beth Mattingly. See box 6.1 for more information about the
2023 Community Development Research Seminar Series.

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 2023, 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, subject matter experts published two new issues of the Board’s Consumer
and Community Context article series examining small-dollar consumer credit products and the
auto finance market.24 See box 6.1 for more information about Consumer & Community Context
and other Board publications.

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.

See “Meeting Small-Dollar Consumer Credit Needs: Old and New Choices,” https://www.federalreserve.gov/
publications/files/consumer-community-context-20230728.pdf and “Nuts and Bolts of Today’s Auto Finance Market,”
https://www.federalreserve.gov/publications/files/consumer-community-context-20231128.pdf. For more information
about Consumer & Community Context, see https://www.federalreserve.gov/publications/consumer-communitycontext.htm.

100 110th Annual Report | 2023

Understanding Outcomes in the Labor Market
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.
During 2023, the Board’s community development initiatives provided insight into post-pandemic
employment and workforce development across demographics. Board staff analyzed how childcare
and family obligations affected women’s participation in the labor force during and after the pandemic.25 The Board also collaborated with Federal Reserve System partners to promote Worker
Voices: Shifting Perspectives and Expectations on Employment, a report about job conditions and
hiring trends in the context of economic recovery.26
In addition to monitoring the impact of employment disparities, the Federal Reserve also assessed
the ways in which post-pandemic economic conditions affected the viability of minority depository
institutions (MDIs). In December 2023, the Board released Preserving and Promoting Minority
Depository Institutions, an annual report informing the public about Federal Reserve research,
events, and other initiatives to preserve and support MDIs.27 During the semiannual Community
Advisory Council (CAC) meetings, council members noted how the end of some types of pandemic
relief created a greater demand for small business loans from MDIs and community development
financial institutions. The Council also shared perspectives on local credit and economic conditions in housing, labor markets, and small businesses.28

25
26
27
28

See https://fedcommunities.org/what-driving-continued-womens-labor-force-shortage/.
See https://fedcommunities.org/research/worker-voices/2023-shifting-perspectives-expectations-employment/.
See https://www.federalreserve.gov/publications/files/promoting-minority-depository-institutions-2023.pdf.
Records of the meetings of the CAC are available at https://www.federalreserve.gov/aboutthefed/cac.htm.

Appendixes

103

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 2023.

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 named by the President from among the members and are confirmed by the Senate.
This section lists Board members who served in 2023. For a full list of Board members from 1914
through the present, see www.federalreserve.gov/aboutthefed/bios/board/boardmembership.htm.
Jerome H. Powell

Philip N. Jefferson

Michelle W. Bowman

Chair

Vice Chair (as of
September 13, 2023)

Lisa D. Cook

Michael S. Barr

Adriana D. Kugler (as of

Lael Brainard
Vice Chair (through
February 20, 2023)

Vice Chair for Supervision

September 13, 2023)

Christopher J. Waller

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

Division of Board Members
Michelle A. Smith

Linda L. Robertson

Jon Faust

Assistant to the Board
and Director

Assistant to the Board (through
May 1, 2023)

Senior Special Adviser
to the Chair

Jennifer C. Gallagher

Terrence E. Fischer

Assistant to the Board

Special Assistant to Board
for Public Information

104 110th Annual Report | 2023

Legal Division
Mark E. Van Der Weide

Alicia S. Foster

Alison M. Thro

General Counsel

Associate General Counsel

Jean C. Anderson

Jason A. Gonzalez

Deputy Associate
General Counsel (through
June 1, 2023)

Deputy General Counsel

Deputy Associate
General Counsel

Evan H. Winerman

Deputy General Counsel

Asad L. Kudiya

Deputy Associate
General Counsel

Charles C. Gray

Deputy Associate
General Counsel

Lucy O. Chang

Jay R. Schwartz

Assistant General Counsel (as of
August 27, 2023)

Richard M. Ashton

Deputy General Counsel

Reena Sahni
Senior Associate
General Counsel

Alvin D. Williams
Senior Associate
General Counsel

Deputy Associate
General Counsel

Dafina V. Stewart

Sean D. Croston
Assistant General Counsel

Deputy Associate
General Counsel

Office of the Secretary
Ann Misback

Yao-Chin Chao

Erin M. Cayce

Secretary of the Board

Deputy Associate Secretary

Margaret M. Shanks

Michele T. Fennell

Assistant Secretary (as of
April 23, 2023)

Deputy Secretary (through
August 31, 2023)

Deputy Associate Secretary

Division of International Finance
Beth Anne Wilson

Etienne Gagnon

Dario Caldara

Director

Associate Director

Assistant Director

Shaghil Ahmed

Luca Guerrieri

Deepa Datta

Deputy Director

Associate Director

Stephanie E. Curcuru

Jason J. Wu

Assistant Director (as of December 17, 2023)

Deputy Director

Associate Director (through January 21, 2023)

Andrea Pastore

Deputy Director (through
February 1, 2023)

Daniel Beltran

Brett D. Berger

Deputy Associate Director

Senior Adviser

Brian M. Doyle

Andrea De Michelis

Carol C. Bertaut

Deputy Director

Deputy Associate Director

Senior Adviser

James A. Dahl

Jasper J. Hoek

Ricardo Correa

Senior Associate Director

Deputy Associate Director

Senior Adviser

Matteo Iacoviello

Viktors Stebunovs

Martin R. Bodenstein

Senior Associate Director

Deputy Associate Director

Adviser

Paul R. Wood

Emre Yoldas

Senior Associate Director

Deputy Associate Director

Sally M. Davies

Assistant Director (as of May 7, 2023)

Federal Reserve System Organization 105

Division of Financial Stability
Andreas W. Lehnert

Skander J. Van den Heuvel

Ceyhun Durdu

Director

Associate Director

Assistant Director

Michael T. Kiley

Seung Jung Lee

Alfonso Ventoso

Deputy Director

Deputy Associate Director

William F. Bassett

Chiara Scotti

Assistant Director (as of
March 26, 2023)

Senior Associate Director

Deputy Associate Director (through
February 16, 2023)

Adele Cecile Morris

David Arseneau

Todd Vermilyea

Assistant Director

Senior Adviser

Jose Berrospide

Andrew M. Cohen

Assistant Director (as of
July 30, 2023)

Adviser

Elizabeth C. Klee
Senior Associate Director

John W. Schindler
Senior Associate Director (through
February 1, 2023)

Namirembe E. Mukasa
Associate Director and
Chief of Staff

Senior Adviser

Fang Cai
Assistant Director (as of
July 30, 2023)

Division of Monetary Affairs
Trevor A. Reeve

Christopher J. Gust

Dan Li

Director

Associate Director

Assistant Director

James A. Clouse

Katherine Sickbert

Elizabeth L. Marx

Deputy Director

Associate Director (as of
March 27, 2023)

Assistant Director

Karen L. Brooks

Assistant Director

Rochelle M. Edge
Deputy Director

Nellisha Ramdass
Deputy Director

Joshua Gallin
Secretary of the FOMC

David H. Bowman
Senior Associate Director

Margaret G. DeBoer
Senior Associate Director

J. David Lopez-Salido
Senior Associate Director

Matthew M. Luecke

Deputy Associate Director

Laura Lipscomb
Deputy Associate Director

Zeynep Senyuz
Deputy Associate Director

Rebecca E. Zarutskie
Deputy Associate Director

Brian Bonis
Assistant Director

Giovanni Favara
Assistant Director

Senior Associate Director

Benjamin Johannsen

Min Wei

Assistant Director (as of
March 12, 2023)

Senior Associate Director

Eric C. Engstrom
Associate Director

Keith Kudrycki
Assistant Director (as of
May 7, 2023)

Andrew C. Meldrum
Jane E. Ihrig
Senior Adviser

Don H. Kim
Senior Adviser

Edward M. Nelson
Senior Adviser

Robert J. Tetlow
Senior Adviser

Annette Vissing-Jorgensen
Senior Adviser

Mark A. Carlson
Adviser

106 110th Annual Report | 2023

Division of Research and Statistics
Stacey Tevlin

Timothy A. Mullen

Jacob Gramlich

Director

Associate Director

Jeffrey C. Campione

Shane M. Sherlund

Assistant Director (as of
April 23, 2023)

Deputy Director

Associate Director

Daniel M. Covitz

Shawn M. Buckner

Deputy Director

Deputy Associate Director

William L. Wascher III

Erik A. Heitfield

Deputy Director

Deputy Associate Director

Stephanie Aaronson

Byron F. Lutz

Senior Associate Director (as of
January 3, 2023)

Deputy Associate Director

Nicole E. Bennett

Deputy Associate Director

Senior Associate Director

Eric M. Engen
Senior Associate Director

Diana Hancock
Senior Associate Director

Elizabeth K. Kiser
Senior Associate Director

David E. Lebow
Senior Associate Director

Michael G. Palumbo
Senior Associate Director

John J. Stevens
Senior Associate Director

Burcu Duygan-Bump
Associate Director

J. Andrew Figura
Associate Director

Glenn R. Follette

Patrick E. McCabe
Raven S. Molloy
Deputy Associate Director

Norman J. Morin

Karen Krugman
Assistant Director

Christopher J. Kurz
Assistant Director and Chief

Paul A. Lengermann
Assistant Director

Geng Li
Assistant Director

Kevin B. Moore
Assistant Director

Matthias Paustian
Assistant Director

Deputy Associate Director

Ekaterina Peneva

Karen M. Pence

Assistant Director and Chief (as of
April 23, 2023)

Deputy Associate Director

Paul A. Smith
Deputy Associate Director

Binoy K. Agarwal

Gustavo Suarez
Assistant Director

Clara Vega
Assistant Director

Assistant Director and Chief

Giovanni G. Amisano

S. Wayne Passmore
Senior Adviser

Assistant Director

Celso Brunetti

Jeremy Rudd
Senior Adviser

Assistant Director

Marco Cagetti
Assistant Director

Deborah M. Flores
Assistant Director

Steven A. Sharpe
Senior Adviser

Wendy E. Dunn
Adviser

Charles Fleischman

Associate Director

Adviser

Division of Supervision and Regulation
Michael S. Gibson

Arthur W. Lindo

Molly E. Mahar

Director

Deputy Director

Senior Associate Director

Jennifer J. Burns

Mary L. Aiken

Richard N. Ragan

Deputy Director

Senior Associate Director

Kate M. Fulton

Marta Chaffee

Lisa H. Ryu

Deputy Director

Senior Associate Director

Federal Reserve System Organization 107

Thomas R. Sullivan

Eric L. Kennedy

Juan C. Climent

Senior Associate Director (through
February 1, 2023)

Deputy Associate Director

Assistant Director

Ryan P. Lordos

Keith J. Coughlin

Kevin M. Bertsch

Deputy Associate Director

Assistant Director (through
June 1, 2023)

Associate Director

Christopher Finger

Lara K. Lylozian

Joseph B. Cox

Associate Director

Deputy Associate Director/
Chief Accountant

Jeffery W. Gunther

David K. Lynch

Associate Director

Deputy Associate Director

Stephen Curren

Anna L. Hewko

T. Kirk Odegard

Associate Director

Deputy Associate Director

Assistant Director (as of
March 13, 2023)

Kavita Jain

Brent Richards

Associate Director

Deputy Associate Director

Assistant Director (as of
October 22, 2023)

Shannon M. Kelly

Vaishali D. Sack

Associate Director (through June 15,
2023)

Deputy Associate Director

Elizabeth K. MacDonald

Richard A. Naylor II

Deputy Associate Director

Associate Director

Uzma Wahhab
Associate Director

John Beebe
Deputy Associate Director

Karen A. Caplan
Deputy Associate Director

James Diggs
Deputy Associate Director

Christine E. Graham
Deputy Associate Director

Robert F. Sarama
Steven M. Spurry

Assistant Director (as of
August 27, 2023)

Kwayne Jennings

Assistant Director

Doriana Ruffino
Assistant Director (as of
August 27, 2023)

Deputy Associate Director

April C. Snyder

Catherine A. Tilford

Assistant Director

Deputy Associate Director

Emily P. Wells

Donna J. Webb

Assistant Director (through
March 1, 2023)

Deputy Associate Director

Suzanne L. Williams
Deputy Associate Director

Kathryn L. Ballintine
Assistant Director

Dana L. Burnett

Kathleen W. Johnson

Assistant Director

Deputy Associate Director (through
May 1, 2023)

Anthony B. Cain

Norah M. Barger
Senior Adviser

Fang Du
Adviser

William F. Treacy
Adviser

Assistant Director

Division of Consumer and Community Affairs
Eric S. Belsky

Benjamin K. Olson

Joseph A. Firschein

Director

Senior Associate Director

Associate Director

V. Nicole Bynum

David E. Buchholz

Phyllis L. Harwell

Deputy Director

Associate Director

David L. Newville

Angelyque Campbell

Drew D. Kohan

Senior Associate Director (as of
June 20, 2023)

Associate Director

108 110th Annual Report | 2023

Marisa A. Reid

Amy B. Henderson

Minh-Duc T. Le

Associate Director

Assistant Director

Assistant Director (through
September 22, 2023)

Caterina Petrucco-Littleton
Deputy Associate Director

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

Stuart E. Sperry

Edward L. Anderson

Director

Associate Director

Assistant Director

Susan V. Foley

Jeffrey D. Walker

Emily A. Caron

Deputy Director

Associate Director

Assistant Director

Gregory L. Evans

Casey H. Clark

Doreen S. Chappell

Senior Associate Director

Deputy Associate Director

Jennifer K. Liu

Sonja R. Danburg

Assistant Director (as of
January 29, 2023)

Senior Associate Director

Deputy Associate Director

Brian R. Gattoni

Jennifer A. Lucier

Jason A. Hinkle

Assistant Director (as of
January 30, 2023)

Senior Associate Director

Deputy Associate Director

David C. Mills

Laura Howard Mayer

Senior Associate Director

Deputy Associate Director (as of
August 14, 2023)

Brian A. Lawler
Associate Director

Mark D. Manuszak
Associate Director

Rebecca L. Royer
Associate Director

Caio P. Peixoto
Deputy Associate Director

Shannon Hulsandra
Assistant Director/Manager

James D. Noonan
Assistant Director (as of
August 27, 2023)

Ian C. Spear
Assistant Director

Timothy W. Maas
Senior Adviser (through
April 1, 2023)

Travis D. Nesmith
Assistant Director and Chief

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

Pamela C. Harris

Chief Data Officer

Associate Director

Deputy Associate Director (as of
October 23, 2023)

Division of Financial Management
Ricardo Aguilera

Monica Y. Manning

Jeffrey R. Peirce

Director and Chief
Financial Officer

Associate Director

Thomas Murphy

Karen L. Vassallo

Stephen J. Bernard

Associate Director

Deputy Director

Kimberly Briggs
Deputy Associate Director

Federal Reserve System Organization 109

Division of Management
Winona Varnon

Reginald V. Roach

Lewis Andrews

Director

Associate Director

Assistant Director

Kendra Gastright

Donna J. Butler

Stewart A. Carroll

Deputy Director

Deputy Associate Director and
Chief of Staff

Assistant Director

Deputy Director
and CHCO

Catherine Jack

Tara Tinsley-Pelitere

Tim Ly

Assistant Director and
Assistant Chief, LEU (as of
July 31, 2023)

Deputy Director and CTO

Deputy Associate Director

Curtis B. Eldridge

Timothy E. Markey

Senior Associate Director
and Chief, LEU (through July 31, 2023)

Deputy Associate Director

Ann Buckingham

Deputy Associate Director

Tameika L. Pope

Deputy Associate Director

Alfonso M. Dyson

Leah Middleton
Assistant Director

Stephen E. Pearson

Associate Director

Division of Information Technology
Sharon L. Mowry

Charles B. Young

Virginia M. Wall

Director (through March 1, 2023)

Senior Associate Director

Deputy Associate Director

Jeffrey M. Riedel

William K. Dennison

Edgar Wang

Director (as of November 20, 2023)

Deputy Associate Director

Andrew V. Krug

Amy Kelley

Ivan K. Wun

Deputy Director (through
November 2, 2023)

Deputy Associate Director

Deputy Associate Director (through
July 31, 2023)

Stephen Olden

Deputy Associate Director

Michelle L. Bagg

Scott Meyerle

Assistant Director (as of
April 9, 2023)

Deputy Director

Kofi A. Sapong
Deputy Director

Brian Lester

Deputy Associate Director

Can Xuan Nguyen

Tannaz Haddadi

Glenn S. Eskow

Deputy Associate Director

Senior Associate Director (through
May 1, 2023)

Assistant Director (as of
March 13, 2023)

Nischala N. Nimmakayala

Herman Ip

Deborah Prespare
Senior Associate Director

Sheryl Lynn Warren
Senior Associate Director

Rajasekhar R. Yelisetty
Senior Associate Director

Deputy Associate Director

Langston Shaw
Deputy Associate Director

Jonathan F. Shrier
Deputy Associate Director

Assistant Director

Fred Vu
Assistant Director

110 110th Annual Report | 2023

Office of Inspector General
Mark Bialek

Stephen Carroll

Khalid A. Hassan

Inspector General

Associate Inspector General

Fred Gibson

Michael VanHuysen

Assistant Inspector General (as of
February 26, 2023)

Deputy Inspector General

Associate Inspector General

Cynthia Gray

Jason A. Derr

Deputy Associate Inspector General

Assistant Inspector General

Jina Hwang
Assistant Inspector General

Jacqueline M. Becker
Senior Adviser

Federal Reserve System Organization 111

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 2023, the
Federal Open Market Committee held eight regularly scheduled meetings (see appendix B,
“Minutes of Federal Open Market Committee Meetings”).

Members
Jerome H. Powell

Susan M. Collins

Neel Kashkari

Chair, Board of Governors

President, Federal Reserve Bank
of Boston

President, Federal Reserve Bank of
Minneapolis

Vice Chair, President,
Federal Reserve Bank of New York

Lisa D. Cook

Adriana D. Kugler

Member, Board of Governors

Michael S. Barr

Austan D. Goolsbee

Member, Board of Governors (as of
September 13, 2023)

Member, Board of Governors

President, Federal Reserve Bank
of Chicago

John C. Williams

Michelle W. Bowman
Member, Board of Governors

Patrick Harker

Lael Brainard

President, Federal Reserve Bank of
Philadelphia

Member, Board of Governors (through
February 20, 2023)

Lorie K. Logan
President, Federal Reserve Bank
of Dallas

Christopher J. Waller
Member, Board of Governors

Philip N. Jefferson
Member, Board of Governors

Alternate Members
Thomas I. Barkin

Mary C. Daly

Helen E. Mucciolo

President, Federal Reserve Bank
of Richmond

President, Federal Reserve Bank
of San Francisco

Raphael W. Bostic

Loretta J. Mester

Interim First Vice President, Federal
Reserve Bank of New York (through
March 1, 2023)

President, Federal Reserve Bank
of Atlanta

President, Federal Reserve Bank
of Cleveland

Sushmita Shukla
First Vice President, Federal Reserve
Bank of New York (as of
March 2, 2023)

112 110th Annual Report | 2023

Officers
Joshua Gallin

Beth Anne Wilson

Andrea Raffo

Secretary

Economist

Associate Economist

Matthew M. Luecke

Shaghil Ahmed

Chiara Scotti

Deputy Secretary

Associate Economist

Brian J. Bonis

Roc Armenter

Associate Economist (as of
February 16, 2023)

Assistant Secretary

Associate Economist

Michelle A. Smith

James A. Clouse

Assistant Secretary

Associate Economist

Roberto Perli

Mark E. Van Der Weide

Brian M. Doyle

Manager, System Open Market
Account (as of February 21, 2023)

General Counsel

Associate Economist

Richard Ostrander

Eric M. Engen

Deputy General Counsel

Associate Economist

Deputy Manager, System Open Market
Account (as of February 21, 2023)

Charles C. Gray

Beverly Hirtle

Assistant General Counsel

Associate Economist

Patricia Zobel

Trevor A. Reeve

Anna Paulson

Economist

Associate Economist

Stacey Tevlin
Economist

William L. Wascher
Associate Economist

Julie Ann Remache

Deputy Manager, System Open Market
Account (through February 20, 2023)

Federal Reserve System Organization 113

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 2023, the council met on February 8–9, May 10–11, September 6–7,
and November 29–30. The council met with the Board on February 9, May 11, September 7, and
November 30, 2023.

Members
District 1

District 5

District 9

Robert F. Rivers

William H. Rogers Jr.

Andrew Cecere

Chairman and Chief Executive Officer,
Eastern Bank, Boston, MA

Chairman and Chief Executive Officer,
Truist Financial Corp., Charlotte, NC

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

District 2

District 6

Marianne Lakes

John M. Turner Jr.

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

President and Chief Executive Officer,
Regions Financial Corp., Birmingham,
AL

Jill Castilla

District 3

District 7

District 11

Jeffrey M. Schweitzer

David R. Casper

David Zalman

President and 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

George A. Makris Jr.
Executive Chairman, Simmons First
National Corp.: Simmons Bank,
Pine Bluff, AR

District 12
Nandita Bakhshi
Adviser, Bank of Montreal,
San Francisco, CA

114 110th Annual Report | 2023

Officers
Jeffrey M. Schweitzer

Herb Taylor

Luba Romanyuk

President

Secretary

Deputy Secretary

David R. Casper
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 2023, the council met on April 13 and
November 16.

Members
District 1

District 5

District 9

Kathryn G. Underwood

Daniel P. Berry

Dylan S. Clarkson

Adviser, Ledyard National Bank,
Hanover, NH

President and Chief Executive Officer,
Duke University Federal Credit Union,
Durham, NC

President and Chief Executive Officer,
Pioneer Bank & Trust, Spearfish, SD

District 2
James S. Vaccaro
Chair, President, and Chief Executive
Officer, Manasquan Bank, Wall
Township, NJ

District 10
District 6
Tyler K. Clinch
Chief Executive Officer and President,
First Community Bank of East
Tennessee, Kingsport, TN

District 3
Jeane M. Vidoni
President and Chief Executive Officer,
Penn Community Bank, Perkasie, PA

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

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

District 11

District 7

Tracy Harris

Kent A. Liechty

President and Chief Executive Officer,
National Bank & Trust, La Grange, TX

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

District 12

District 8

Janet Silveria

Luanne Cundiff

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

District 4
Chuck Sulerzyski

Kim DeVore

President and Chief Executive Officer,
First State Bank of St. Charles,
St. Charles, MO

Federal Reserve System Organization 115

Officers
Jeane M. Vidoni

Chuck Sulerzyski

President

Vice President

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 2023, the council met
with the Board on May 18 and October 19.

Members
Ivye Allen

Michelle Ka’uhane

Dr. Laura Murillo

President, Foundation for the
Mid South, Jackson, MS

Senior Vice President & Chief Impact
Officer, Hawaii Community Foundation,
Honolulu, HI

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

Megan Langley

President and CEO, Colorado
Enterprise Fund, Denver, CO

Daniel Betancourt
President and CEO, Community First
Fund, Lancaster, PA

Carlos J. Contreras III

Executive Director, Strengthen North
Dakota, Souris, ND

President and CEO, Goodwill
Industries of San Antonio,
San Antonio, TX

Chan U. Lee

Fearn Gupton

Darlene Lombos

Rural Development Manager, South
Carolina Department of Commerce,
Columbia, SC

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

Melanie Hogan

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

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

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

Christie McCravy

Officers
Daniel Betancourt

Christie McCravy

Chair

Vice Chair

Ceyl Prinster

Eric Robertson
Executive Director, The Formanek
Foundation, Memphis, TN

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

Kendra N. Smith
Vice President, Community Health,
Bon Secours Mercy Health, Toledo, OH

116 110th Annual Report | 2023

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
The council had no members or meetings during 2023.

Federal Reserve System Organization 117

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.

118 110th Annual Report | 2023

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 2023 at https://www.federalreserve.gov/aboutthefed/files/
bostonfinstmt2023.pdf.

Class A

Class B

Class C

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

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

Chairman, President, and Chief
Executive Officer, Massachusetts
Mutual Life Insurance Company,
Springfield, MA

Ronald P. O’Hanley, 2025

Vacancy, 2025

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

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

Lizanne Kindler, 2025
Executive Chair and Chief Executive
Officer, KnitWell Group, Hingham, MA

Federal Reserve System Organization 119

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 2023 at https://www.federalreserve.gov/aboutthefed/files/
newyorkfinstmt2023.pdf.
Class A

Class B

Class C

Vacancy, 2023

Arvind Krishna, 2023

Rosa Gil, 2023

René F. Jones, 2024

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

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

Chairman and Chief Executive Officer,
M&T Bank Corporation, Buffalo, NY

Douglas L. Kennedy, 2025
President and Chief Executive Officer,
Peapack-Gladstone Bank,
Bedminster, NJ

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

Adena T. Friedman, 2025
President and Chief Executive Officer,
Nasdaq, New York, NY

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

Pat Wang, 2025
President and Chief Executive Officer,
Healthfirst, New York, NY

120 110th Annual Report | 2023

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 2023 at https://www.federalreserve.gov/
aboutthefed/files/philadelphiafinstmt2023.pdf.

Class A

Class B

Class C

Randall E. Black, 2023

Bret S. Perkins, 2023

William Lo, 2023

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

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

President, Crystal Steel Fabricators,
Inc., Delmar, DE

Julia H. Klein, 2024

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

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

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

Christopher D. Maher, 2025

John Fry, 2025

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

President, Drexel University,
Philadelphia, PA

Sharmain Matlock-Turner,

Anthony Ibarguen, 2025
Chief Executive Officer, Quench USA,
Inc., King of Prussia, PA

Federal Reserve System Organization 121

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 2023 at https://www.federalreserve.gov/
aboutthefed/files/clevelandfinstmt2023.pdf.
Class A

Vacancy, 2024

Jill Meyer, 2025

Dean J. Miller, 2023

Heidi L. Gartland, 2025

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

Chief Government and Community
Relations Officer, University Hospitals,
Cleveland, OH

Chief Executive Officer, Cincinnati USA
Chamber of Commerce, Cincinnati, OH

Eddie L. Steiner, 2024

Cincinnati Branch

President and Chief Executive Officer,
CSB Bancorp, Inc., Millersburg, OH

Pittsburgh Branch
Appointed by the Federal Reserve Bank

Earl Buford, 2023

Appointed by the Federal Reserve Bank

President, CAEL, Indianapolis, IN

Helga Houston, 2025

Alfonso Cornejo, 2023

Christina A. Cassotis, 2023

Senior Executive Vice President and
Chief Risk Officer, Huntington
Bancshares Inc., Columbus, OH

President, Hispanic Chamber
Cincinnati USA, Cincinnati, OH

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

David C. Evans, 2023

Nishan J. Vartanian, 2024

Class B

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

Darrell McNair, 2023

Archie M. Brown, 2024

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

President, MVP Plastics, Inc.,
Middlefield, OH

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

President and Chief Executive Officer,
First Financial Bancorp, Cincinnati, OH

Gina McFarlane-El, 2025

Sanjay Chopra, 2025
Co-Founder and Chief Executive
Officer, Cognistx, Pittsburgh, PA

Chief Executive Officer, Five Rivers
Health Centers, Dayton, OH

Appointed by the Board of Governors

Holly B. Wiedemann, 2025

Appointed by the Board of Governors

Founder, AU Associates, Inc.,
Lexington, KY

Melvin Gravely, 2023

President, Carlow University,
Pittsburgh, PA

Class C

Chief Executive Officer, TriVersity
Construction, Cincinnati, OH

Doris Carson Williams, 2023
President and Chief Executive Officer,
African American Chamber of
Commerce of Western Pennsylvania,
Pittsburgh, PA

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

Kathy Wilson Humphrey, 2023

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

Eugene Boyer III, 2025
Brokerage Advisor, NAI Burns Scalo,
Pittsburgh, PA

122 110th Annual Report | 2023

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 2023 at https://www.federalreserve.gov/
aboutthefed/files/richmondfinstmt2023.pdf.
Class A

Jodie McLean, 2025

Charlotte Branch

Jennifer LaClair, 2023

Chief Executive Officer, EDENS,
Washington, DC

Appointed by the Federal Reserve Bank

Chief Revenue Officer, Fiserv,
Charlotte, NC

Baltimore Branch

James H. Sills III, 2024

Appointed by the Federal Reserve Bank

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

Brenda Galgano, 2023

Alice P. Frazier, 2025
President and Chief Executive Officer,
Bank of Charles Town,
Charles Town, WV

Class B
Robert M. Blue, 2023
President and Chief Executive Officer,
Dominion Energy, Richmond, VA

Vacancy, 2024
Wayne A. I. Frederick, MD,
2025
President, Howard University,
Washington, DC

Class C
Lisa M. Hamilton, 2023
President and Chief Executive Officer,
The Annie E. Casey Foundation,
Baltimore, MD

Halsey M. Cook, 2024
President and Chief Executive Officer,
Milliken, Spartanburg, SC

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

Tom Geddes, 2024
Partner and Portfolio Manager, Brown
Advisory, Baltimore, MD

Mary McDuffie, 2024
President and Chief Executive Officer,
Navy Federal Credit Union, Vienna, VA

Cecilia A. Hodges, 2025

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

George Dean Johnson III, 2024
Chief Executive Officer, Johnson
Development Associates, Inc.,
Spartanburg, SC

Dionne Nelson, 2025
President and Chief Executive Officer,
Laurel Street Residential,
Charlotte, NC
Appointed by the Board of Governors

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

R. Glenn Sherrill Jr., 2023

Appointed by the Board of Governors

Bernett William Mazyck, 2024

Leslie D. Hale, 2023

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

President and Chief Executive Officer,
RLJ Lodging Trust, Bethesda, MD

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

William J. McCarthy, 2025
Executive Director, Catholic Charities
of Baltimore, Baltimore, MD

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

James F. Goodmon Jr., 2025
President and Chief Operating Officer,
Capitol Broadcasting Company,
Raleigh, NC

Federal Reserve System Organization 123

District 6–Atlanta
Covers the states of Alabama, Florida, and Georgia; 74
counties in the eastern two-thirds of Tennessee; 38 parishes of southern Louisiana; and 43 counties of southern

6—F
Nashville

TN
AL

Birmingham
MS

Mississippi.
For more information on this District and to learn more

LA
New Orleans

Jacksonville
FL

about the Federal Reserve Bank of Atlanta’s operations,
visit https://www.frbatlanta.org/. Information on economic

Miami

Atlanta

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 2023 at https://www.federalreserve.gov/aboutthefed/files/atlantafinstmt2023.pdf.
Class A

Claire Lewis Arnold, 2024

Christy Thomas, 2024

Rajinder P. Singh, 2023

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

Chief Financial Officer, BLOX,
Bessemer, AL

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

James O. Etheredge, 2025

Randall P. Breaux, 2025

Special Advisor to the Chief Executive
Officer, Accenture North America,
Atlanta, GA

Group President, Genuine Parts
Company of North America,
Birmingham, AL

Birmingham Branch

Jacksonville Branch

Appointed by the Federal Reserve Bank

Samuel N. Addy, 2023

William O. West, 2023

Senior Research Economist, The
University of Alabama, Tuscaloosa, AL

Vice Chair, The Bank of Tampa,
Tampa, FL

Michelle Lewis, 2024

Monesia T. Brown, 2024

Chief Financial Officer, AAA Cooper
Transportation, Dothan, AL

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

Abel L. Iglesias, 2024
Executive Vice President and
Miami-Dade Regional President,
Seacoast Bank, Coral Gables, FL

Cynthia N. Day, 2025
President and Chief Executive Officer,
Citizens Trust Bank, Atlanta, GA

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

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

Nicole B. Thomas, 2025
Hospital President, Baptist Medical
Center Jacksonville, Jacksonville, FL

Class C
Gregory A. Haile, 2023
Former President, Broward College,
Fort Lauderdale, FL

David L. Nast, 2024
President, Alabama/Florida Panhandle, United Community Bank,
Huntsville, AL

Brian E. Wolfburg, 2024

Melanie Bridgeforth, 2025

R. Andrew Watts, 2025

President and Chief Executive Officer,
Women’s Foundation of Alabama,
Birmingham, AL

Executive Vice President, Chief
Financial Officer, and Treasurer, Brown
& Brown, Inc., Daytona Brach, FL

Appointed by the Board of Governors

Hafiz Chandiwala, 2023

Edward A. Moratin, 2023

Executive Vice President and Chief
Administrative Officer, Coca Cola
Bottling Company United, Inc.,
Birmingham, AL

President, LIFT Orlando, Orlando, FL

President and Chief Executive Officer,
VyStar Credit Union, Jacksonville, FL

124 110th Annual Report | 2023

Timothy P. Cost, 2024

Rita Case, 2025

New Orleans Branch

President, Jacksonville University,
Jacksonville, FL

President and Chief Executive Officer,
Rick Case Automotive Group,
Sunrise, FL

Appointed by the Federal Reserve Bank

Nashville Branch

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

Lisa Palmer, 2025
President and Chief Executive Officer,
Regency Centers Corporation,
Jacksonville, FL

Miami Branch

Appointed by the Federal Reserve Bank

Marshall E. Crawford Jr., 2023

William G. Yates III, 2023

Katherine A. Crosby, 2024

Appointed by the Federal Reserve Bank

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

Board Chair, Fidelity Bank,
New Orleans, LA

Daniel Lavender, 2023

Amanda Hite, 2024

David T. Darragh, 2024

Chief Executive Officer, Moorings Park
Institute, Inc., Naples, FL

President, STR, Hendersonville, TN

N. Maria Menendez, 2023

Chief Executive Officer, TeamHealth
Holdings, Inc., Knoxville, TN

Chief Financial Officer, GL Homes of
Florida Holding, Sunrise, FL

Ginger Martin, 2024
President and Chief Executive Officer,
American National Bank, Oakland
Park, FL

Jose Cueto, 2025
President and Chief Operating Officer,
Grove Bank and Trust, Miami, FL
Appointed by the Board of Governors

Leif M. Murphy, 2024

Steven Woodward, 2025
Former President and Chief Executive
Officer, Kirkland’s Inc., Brentwood, TN
Appointed by the Board of Governors

Amanda Mathis, 2023
Chief Financial Officer, Bridgestone
Americas, Inc., Nashville, TN

Thomas Zacharia, 2024

Chief Executive Officer, City Furniture,
Tamarac, FL

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

Kathleen Cannon, 2024

William E. Fuller, 2025

President and Chief Executive Officer,
United Way of Broward County,
Fort Lauderdale, FL

Former President and Chief Executive
Officer, U.S. Xpress, Inc.,
Chattanooga, TN

Keith T. Koenig, 2023

Operating Partner, LongueVue Capital,
Metairie, LA

William J. Bynum, 2025
Chief Executive Officer, Hope Credit
Union, Hope Enterprise Corp., and
Hope Policy Institute, Jackson, MS
Appointed by the Board of Governors

Michael E. Hicks Jr., 2023
President and Chief Executive Officer,
Hixardt Technologies, Inc.,
Pensacola, FL

John C. Driscoll, 2024
Director and Chief Executive Officer,
Alabama State Port Authority,
Mobile, AL

Melissa B. Rogers, 2025
President and Founder, Noble Plastics,
Grand Coteau, LA

Federal Reserve System Organization 125

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

7—G

counties of northern Illinois, 68 counties of southern Michigan,

and 46 counties of southern Wisconsin.
For more information on this District and to learn more about the

Detroit

IA
IL

Federal Reserve Bank of Chicago’s operations, visit https://

www.chicagofed.org/. Information on economic conditions for
this District can be found in the Federal Reserve System’s Beige

Chicago

Book at https://www.federalreserve.gov/monetarypolicy/beigebook-default.htm. Also find the Reserve Bank’s financial statements for 2023 at https://www.federalreserve.gov/aboutthefed/files/chicagofinstmt2023.pdf.
Class A

Class C

Anika Goss, 2024

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 Solutions, Northbrook, IL

Ronald E. Hall, 2025

Juan Salgado, 2024

Christopher J. Murphy III, 2024

President and Chief Executive Officer,
Bridgewater Interiors, LLC, Detroit, MI

Chancellor, City Colleges of Chicago,
Chicago, IL

Appointed by the Board of Governors

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

Susan Whitson, 2025
Chief Executive Officer, First Bank, and
President, First of Waverly Corporation,
Waverly, IA

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

Linda P. Hubbard, 2024
President and Chief Operating Officer,
Carhartt, Inc., Dearborn, MI

Linda Jojo, 2025
Executive Vice President, Chief
Customer Officer, United Airlines, Inc.,
Chicago, IL

Maurice Smith, 2025
President, Chief Executive Officer, and
Vice Chair, Health Care Service
Corporation, Chicago, IL

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

James M. Nicholson, 2024

Detroit Branch

Co-Chairman, PVS Chemicals, Inc.,
Detroit, MI

Appointed by the Federal Reserve Banks

Sandy K. Baruah, 2025

JoAnn Chavez, 2023

President and Chief Executive Officer,
Detroit Regional Chamber, Detroit, MI

Senior Vice President and Chief Legal
Officer, DTE Energy, Detroit, MI

Kevin Nowlan, 2023
Executive Vice President and Chief
Financial Officer, BorgWarner Inc.,
Auburn Hills, MI

126 110th Annual Report | 2023

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

8—H
IL
MO
AR
Little Rock

Louisville
TN
Memphis

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
Tennessee.

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 2023 at https://www.federalreserve.gov/aboutthefed/files/
stlouisfinstmt2023.pdf.
Class A

Class C

Christopher B. Hegi, 2025

Elizabeth G. McCoy, 2023

James M. McKelvey Jr., 2023

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

Chief Executive Officer, Planters Bank,
Inc., Hopkinsville, KY

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

Appointed by the Board of Governors

Misty Borrowman, 2024

Lal Karsanbhai, 2024

President and Chief Executive Officer,
Bank of Hillsboro, Hillsboro, IL

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

C. Mitchell Waycaster, 2025

Carolyn Chism Hardy, 2025

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

President and Chief Executive Officer,
Chism Hardy Investments, LLC,
Collierville, TN

Class B
R. Andrew Clyde, 2023

Little Rock Branch

President and Chief Executive Officer,
Murphy USA Inc., El Dorado, AR

Appointed by the Federal Reserve Bank

Michael Ugwueke, 2024

Chief Executive Officer, World Trade
Center Arkansas, Rogers, AR

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

Penelope Pennington, 2025
Managing Partner, Edward Jones,
St. Louis, MO

Denise Thomas, 2023

Darrin Williams, 2023

Vickie D. Judy, 2023
Chief Financial Officer and Vice
President, America’s Car-Mart, Inc.,
Bentonville, AR

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

Allison J. H. Thompson, 2025
President and Chief Executive Officer,
Economic Development Alliance for
Jefferson County, Arkansas,
Pine Bluff, AR

Louisville Branch

Chief Executive Officer, Southern
Bancorp, Inc., Little Rock, AR

Appointed by the Federal Reserve Bank

Jeff Lynch, 2024

President and Chief Executive Officer,
Southwest Indiana Chamber of
Commerce, Evansville, IN

President and Chief Executive Officer,
Eagle Bank & Trust Co., Little Rock, AR

Tara England Barney, 2023

Federal Reserve System Organization 127

Blake B. Willoughby, 2023

David Tatman, 2025

R. Davy Carter, 2025

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

Assistant Plant Manager and Director
of Engineering, Bendix Commercial
Vehicle Systems, Bowling Green, KY

Regional President, Home
BancShares, Inc., Jonesboro, AR

Memphis Branch

Beverly Crossen, 2023

Dave W. Christopher, 2024
Founder and Executive Director,
AMPED Louisville, Louisville, KY

Appointed by the Federal Reserve Bank

James A. Hillebrand, 2025

Jeff Agee, 2023

Chairman and Chief Executive Officer,
Stock Yards Bank & Trust,
Louisville, KY

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

Appointed by the Board of Governors

Henry N. Reichle Jr., 2023

Sadiqa N. Reynolds, 2023

President and Chief Executive Officer,
Staplcotn, Greenwood, MS

Chief Executive Officer, Perception
Institute, Brooklyn, NY

Emerson M. Goodwin, 2024
Senior Vice President of Business
Development, ARcare, Bentonville, AR

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

Appointed by the Board of Governors

Owner, Farmhouse Tupelo, Tupelo, MS

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

Vacancy, 2025

128 110th Annual Report | 2023

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

9—I

North Dakota, and South Dakota; the Upper
MT
Helena

Peninsula of Michigan; and 26 counties in
MN

northern Wisconsin.

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 2023 at https://www.federalreserve.gov/aboutthefed/files/
minneapolisfinstmt2023.pdf.
Class A

Lakota Vogel, 2025

Helena Branch

Gerald H. Jacobson, 2023

Executive Director, Four Bands
Community Fund, Eagle Butte, SD

Appointed by the Federal Reserve Bank

President, Northwestern Bank,
Chippewa Falls, WI

Class C

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

Brenda K. Foster, 2025
Chairman, President, and Chief
Executive Officer, First Western Bank
and Trust, Minot, ND

Class B
Chelsie Glaubitz Gabiou, 2023
President, Minneapolis Regional Labor
Federation, AFL-CIO, Minneapolis, MN

Sarah Walsh, 2024
Chief Executive Officer, MMA
Northwest, Marsh McLennan Agency,
Helena, MT

Srilata Zaheer, 2023
Professor and Dean Emerita,
Carlson School of Management,
University of Minnesota,
Minneapolis, MN

William E. Coffee, 2023
Chief Executive Officer and Chairman
of the Board, Stockman Financial
Corporation, Billings, MT

Jason Adams, 2024
Owner and Consultant, Ace Housing
and Development, LLC, Polson, MT

Paul D. Williams, 2024

Mary Rutherford, 2025

President and Chief Executive Officer,
Project for Pride in Living,
Minneapolis, MN

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

Chris Hilger, 2025

Appointed by the Board of Governors

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

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

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

Federal Reserve System Organization 129

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

10—J

Oklahoma, and Wyoming; 43 counties in western

Missouri; and 14 counties in northern New Mexico.

NE
MO

Omaha

For more information on this District and to learn

Denver

more about the Federal Reserve Bank of Kansas
City’s operations, visit https://www.kansas

Oklahoma City

cityfed.org/. Information on economic conditions for
this District can be found in the Federal Reserve

Kansas City

System’s Beige Book at https://www.federal
reserve.gov/monetarypolicy/beige-book-default.htm.
Also find the Reserve Bank’s financial statements for 2023 at https://www.federalreserve.gov/
aboutthefed/files/kansascityfinstmt2023.pdf.
Class A

Class C

John J. Coyne III, 2025

Patricia J. Minard, 2023

María Griego-Raby, 2023

Executive Vice President and Chief
Financial Officer, Emprise Bank,
Wichita, KS

President and Principal, Contract
Associates, Albuquerque, NM

Chairman, Chief Executive Officer, and
President, Big Horn Federal Savings
Bank, Greybull, WY

Kyle Heckman, 2024

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

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

Alex Williams, 2025
Chairman, Chief Executive Officer, and
President, Halstead Bank,
Halstead, KS

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

Ramin Cherafat, 2024
Chief Executive Officer, McCownGordon Construction, Kansas City, MO

Paul Maass, 2025
Chief Executive Officer, Scoular,
Omaha, NE

Appointed by the Board of Governors

Jandel Allen-Davis, MD, 2024

Patrick A. Dujakovich, 2025
President, Greater Kansas City
AFL-CIO, Kansas City, MO

Denver Branch
Appointed by the Federal Reserve Bank

Navin Dimond, 2023
Founder and Chief Executive Officer,
Stonebridge Companies, Denver, CO

Janice J. Lucero, 2024
President and Chief Executive Officer,
Motor Vehicle Division Express,
Albuquerque, NM

Del Esparza, 2025

Rachel Gerlach, 2023

Chief Executive Officer, Esparza Digital
& Advertising, Albuquerque, NM

Chief Credit Officer, Alpine Bank,
Glenwood Springs, CO

Oklahoma City Branch

Nicole Glaros, 2024

Appointed by the Federal Reserve Bank

Founder and Chief Executive Officer,
Phos, Boulder, CO

Brady Sidwell, 2023

Chris Wright, 2024

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

Chief Executive Officer, Liberty Energy,
Denver, CO

J. Walter Duncan IV, 2024
President, Duncan Oil Properties, Inc.,
Oklahoma City, OK

130 110th Annual Report | 2023

Mark Burrage, 2025

Omaha Branch

Appointed by the Board of Governors

Chief Executive Officer, FirstBank,
Atoka, OK

Appointed by the Federal Reserve Bank

Carmen Tapio, 2023

Dwayne W. Sieck, 2023

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

Terry Salmon, 2025
President, Computer System
Designers, Oklahoma City, OK
Appointed by the Board of Governors

Katrina Washington, 2023
Executive Director, Neighborhood
Housing Services, and Owner, Stratos
Realty Group, Oklahoma City, OK

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

Dana S. Weber, 2025
Chief Executive Officer and Chairman
of the Board, Webco Industries, Inc.,
Sand Springs, OK

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

Zac Karpf, 2024
President, Platte Valley Bank,
Scottsbluff, NE

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

Clark Lauritzen, 2025
Chairman and President, First National
Bank of Omaha, Omaha, NE

Joanne Li, 2024
Chancellor, University of Nebraska at
Omaha, Omaha, NE

L. Javier Fernandez, 2025
President and Chief Executive Officer,
Omaha Public Power District,
Omaha, NE

Federal Reserve System Organization 131

District 11–Dallas
Covers the state of Texas, 26 parishes in northern

11—K

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
found in the Federal Reserve System’s Beige Book

Dallas

at https://www.federalreserve.gov/monetarypolicy/
beige-book-default.htm. Also find the Reserve Bank’s
financial statements for 2023 at https://www.federalreserve.gov/aboutthefed/files/
dallasfinstmt2023.pdf.
Class A

Class C

Robert A. Hulsey, 2023

Claudia Aguirre, 2023

President and Chief Executive Officer,
American National Bank of Texas,
Terrell, TX

President and Chief Executive Officer,
BakerRipley, Houston, TX

Kelly A. Barclay, 2024
President and Chief Executive Officer,
Ozona Bank, Wimberly, TX

Vacancy, 2024
Thomas J. Falk, 2025

Joe Quiroga, 2025

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

President, Texas National Bank,
Edinburg, TX

El Paso Branch

Class B
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

Cynthia Taylor, 2025
President and Chief Executive Officer,
Oil States International Inc.,
Houston, TX

Appointed by the Board of Governors

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, El Paso, TX

Von C. Washington Sr., 2025
President, IDA Technology, El Paso, TX

Houston Branch

Appointed by the Federal Reserve Bank

Jill Gutierrez, 2023

Gina Luna, 2023

Director, Bank 34, Alamogordo, NM

Jack Harper, 2023
Partner, HEDLOC Investment Company,
LP, Midland, TX

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

Kari Mitchell, 2025
Chief Executive Officer, Las Cruces
Machine Mfg. & Engineering, Inc.,
Mesilla Park, NM

Managing Partner, Genesis Park,
Houston, TX

Bhavesh V. Patel, 2023
President, Standard Industries,
Houston, TX

Peter Rodriguez, 2024
Dean and Professor of Strategic
Management, Rice University,
Houston, TX

132 110th Annual Report | 2023

Gary R. Petersen, 2025

San Antonio Branch

Appointed by the Board of Governors

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

Appointed by the Federal Reserve Bank

Veronica Muzquiz Edwards,

Appointed by the Board of Governors

Bradley Barron, 2023

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

Ruth J. Simmons, 2023

President and Chief Executive Officer,
NuStar Energy, San Antonio, TX

President, Prairie View A&M University,
Prairie View, TX

Tyson Tuttle, 2023

Cynthia N. Colbert, 2024

President and Chief Executive Officer,
Silicon Labs, Austin, TX

President and Chief Executive Officer,
Catholic Charities Archdiocese of
Galveston-Houston, Houston, TX

Ric Campo, 2025
Chairman and Chief Executive Officer,
Camden Property Trust, Houston, TX

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

Denise Rodriguez Hernandez,
2025
Owner and Chief Executive Officer, The
Eatery Culinary Group, San Antonio, TX

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

Rosa Santana, 2025
Founder and Chief Executive Officer,
Santana Group, San Antonio, TX

Federal Reserve System Organization 133

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
Northern Mariana Islands.

Alaska

Seattle
Portland

For more information on this District and to learn more

about the Federal Reserve Bank of San Francisco’s operations, visit http://www.frbsf.org/. Information on economic
conditions for this District can be found in the Federal

Reserve System’s Beige Book athttps://www.federal

https://www.federalreserve.gov/aboutthefed/files/

Salt Lake
City
UT
Los Angeles

reserve.gov/monetarypolicy/beige-book-default.htm. Also
find the Reserve Bank’s financial statements for 2023 at

Guam

Hawaii

San Francisco

sanfranciscofinstmt2023.pdf.
Class A
S. Randolph Compton, 2023
Co-Chair of the Board, Pioneer Trust
Bank, N.A., Salem, OR

Vacancy, 2024
Simone Lagomarsino, 2025
President and Chief Executive Officer,
Luther Burbank Savings and Luther
Burbank Corporation, Gardena, CA

David P. White, 2024

Appointed by the Board of Governors

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

Maritza Diaz, 2023

Mario Cordero, 2025
Executive Director, Port of Long Beach,
Long Beach, CA

Los Angeles Branch

Class B

Appointed by the Federal Reserve Bank

Karen Lee, 2023

Theresa Benelli, 2023

Chief Executive Officer, Plymouth
Housing, Seattle, WA

Executive Director, LISC Phoenix,
Phoenix, AZ

Arthur F. Oppenheimer, 2024

Jimmy Ayala, 2024

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

Chief Operating Officer, Chelsea
Investment Corporation, Carlsbad, CA

Vacancy, 2025
Class C
Tamara L. Lundgren, 2023
Chairman, President, and Chief
Executive Officer, Radius Recycling,
Portland, OR

Zach Moon, 2024
General Manager, California Steel
Industries, Inc., Fontana, CA

Chang M. Liu, 2025
President and Chief Executive Officer,
Cathay Bank, Los Angeles, CA

Chief Executive Officer, iTjuana, San
Marcos, CA

Jack L. Sinclair, 2024
Chief Executive Officer, Sprouts
Farmers Market, Phoenix, AZ

Rosemary Vassiliadis, 2025
Director of Aviation, Harry Reid
International Airport, Las Vegas, NV

Portland Branch
Appointed by the Federal Reserve Bank

Alicia Chapman, 2023
Owner and Chief Executive Officer,
Willamette Technical Fabricators,
Portland, OR

Andrew Colas, 2023
President, Colas Construction, Inc.,
Portland, OR

Stacey M. L. Dodson, 2024
Market President, Portland and
Southwest Washington, U.S. Bank,
Portland, OR

Maria Pope, 2025
President and Chief Executive Officer,
Portland General Electric Company,
Portland, OR

134 110th Annual Report | 2023

Appointed by the Board of Governors

Joze Enriquez, 2025

Laura Lee Stewart, 2023

Graciela Gomez-Cowger, 2023

Founder and Chief Executive Officer,
Latinos In Action, Sandy, UT

President and Chief Executive Officer,
Sound Community Bank and Sound
Financial Bancorporation, Seattle, WA

Chief Executive Officer, Schwabe,
Williamson & Wyatt, Portland, OR

Appointed by the Board of Governors

Gale Castillo, 2024

Susan D. Morris, 2023

President, Canopy, Portland, OR

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

Cheryl R. Nester Wolfe, 2025
President and Chief Executive Officer,
Salem Health Hospital and Clinics,
Salem, OR

O. Randall Woodbury, 2024

Salt Lake City Branch

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

Appointed by the Federal Reserve Bank

Deneece Huftalin, 2025

Russell A. Childs, 2023

President, Salt Lake City Community
College, Taylorsville, UT

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

Mark Packard, 2023
President and Chief Executive Officer,
Central Bank, Provo, UT

Lisa Ann Grow, 2024
President and Chief Executive Officer,
IdaCorp & Idaho Power, Boise, ID

Michael S. Senske, 2024
President and Chief Executive Officer,
Pearson Packaging Systems,
Spokane, WA

Robert C. Donegan, 2025
President, Ivar’s Inc., Seattle, WA
Appointed by the Board of Governors

John Wolfe, 2023
Chief Executive Officer, Northwest
Seaport Alliance, Tacoma, WA

Pallavi Mehta Wahi, 2024

Appointed by the Federal Reserve Bank

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

Carol Gore, 2023

Sheila Edwards Lange, 2025

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

Chancellor, University of Washington,
Tacoma, WA

Seattle Branch

Federal Reserve System Organization 135

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
Corey Thomas, Chair
Roger W. Crandall, Deputy Chair

Susan M. Collins, President and

Kenneth C. Montgomery,

Chief Executive Officer

First Vice President and
Chief Operating Officer

John C. Williams, President and

Sushmita Shukla, First Vice

Chief Executive Officer

President and Chief Operating Officer

New York
Vincent Alvarez, Chair
Rosa M. Gil, Deputy Chair

Additional office at East Rutherford, NJ

Philadelphia
Anthony Ibarguen, Chair

Patrick T. Harker, President and

Jeanne R. Rentezelas, First Vice

Chief Executive Officer

President and Chief Operating Officer

Doris Carson Williams, Chair

Cincinnati

Pittsburgh

Heidi L. Gartland, Deputy Chair

Rachid Abdallah, Chair

Vera Krekanova, Chair

Loretta J. Mester, President and

Julianne Dunn, Vice President

Russell Mills, Vice President and

Chief Executive Officer

and Senior Regional Officer

Senior Regional Officer

Sharmain Matlock-Turner,
Deputy Chair

Cleveland

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

136 110th Annual Report | 2023

Richmond
Jodie McLean, Chair

Baltimore

Charlotte

Lisa M. Hamilton, Deputy Chair

William J. McCarthy, Chair

Bernett William Mazyck, 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

Claire Lewis Arnold, Chair

Jacksonville

Nashville

Gregory A. Haile, Deputy Chair

Edward A. Moratin, Chair

Thomas Zacharia, Chair

Raphael W. Bostic, President

Michelle Dennard, Vice President

Laurel Graefe, Vice President and

and Chief Executive Officer

and Regional Executive

Regional Executive

Miami

New Orleans

Keith T. Koenig, Chair

Michael E. Hicks Jr., Chair

Shari Bower, Vice President and

Adrienne C. Slack, Vice President

Regional Executive

and Regional Executive

Ellen Bromagen, First Vice

Detroit

Becky Bareford, First Vice
President and Chief Operating Officer

Atlanta

André Anderson, First Vice
President and Chief Operating Officer

Birmingham
Christy Thomas, Chair
Anoop Mishra, Vice President and
Regional Executive

Chicago
Jennifer Scanlon, Chair
Juan Salgado, Deputy Chair

President and Chief Operating Officer
Additional office at Des Moines, IA

Sandy K. Baruah, Chair

Austan Goolsbee, President and

Rick Mattoon, Vice President of

Chief Executive Officer

Regional Analysis and Engagement,
Detroit Regional Executive

St. Louis
James M. McKelvey Jr., Chair

Little Rock

Carolyn Chism Hardy,

Vickie D. Judy, Chair

Deputy Chair

Kathleen O’Neill, Interim
President and Chief Executive Officer;
First Vice President and Chief
Operating Officer

Matuschka Lindo Briggs,
Senior Vice President and Regional
Executive

Seema Sheth, Senior Vice
President and Regional Executive

Memphis
Beverly Crossen, Chair
Douglas G. Scarboro, Senior

Louisville
Emerson M. Goodwin, Chair

Vice President and Regional Executive

Federal Reserve System Organization 137

Minneapolis
Srilata Zaheer, Chair
Chris Hilger, Deputy Chair

Neel Kashkari, President and
Chief Executive Officer

Ron J. Feldman, First Vice

Helena
Alan D. Ekblad, Chair

President

Kansas City
Patrick A. Dujakovich, Chair

Denver

María Griego-Raby, Deputy Chair

Navin Dimond, Chair

Jeffrey Schmid, President

Nicholas Sly, Assistant Vice

and Chief Executive Officer

President and Branch Executive

L. Javier Fernandez, Chair

Oklahoma City

Nathan Kauffman, Senior Vice

Kelly J. Dubbert, First Vice
President and Chief Operating Officer

Katrina Washington, Chair

Chad R. Wilkerson, Senior Vice
President and Branch Executive

Omaha

President and Branch Executive

Dallas
Thomas J. Falk, Chair

El Paso

Claudia Aguirre, Deputy Chair

Sally A. Hurt-Deitch, Chair

Lorie K. Logan, President and

Roberto A. Coronado, Senior

Chief Executive Officer

Vice President in Charge

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

Houston
Ruth J. Simmons, Chair

Daron D. Peschel, Senior Vice
President in Charge

San Antonio
Veronica Muzquiz Edwards,
Chair

Roberto A. Coronado, Senior
Vice President in Charge

San Francisco
Tamara L. Lundgren, Chair

Los Angeles

Salt Lake City

David P. White, Deputy Chair

Jack L. Sinclair, 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

Cheryl R. Nester Wolfe, Chair

Sheila Edwards Lange, Chair

Ian Galloway, Vice President and

Christina Prkic, Vice President

Regional Executive

and Regional Executive

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

138 110th Annual Report | 2023

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 16 and
17, 2023, and November 28 and 29, 2023. The conference’s executive committee members for
2023 are listed below.1
Conference of Chairs Executive Committee—2023
Tamara L. Lundgren, Chair,

Corey Thomas, Vice Chair,

Patrick A. Dujakovich, Member,

Federal Reserve Bank of
San Francisco

Federal Reserve Bank of Boston

Federal Reserve Bank of Kansas City

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 2023 are listed below.
Conference of Presidents—2023
John C. Williams, Chair,

Heidy Medina, Secretary, Federal

Federal Reserve Bank of New York

Reserve Bank of New York

Neel Kashkari, Vice Chair,

Karmi Mattson, Assistant

Federal Reserve Bank of Minneapolis

Secretary, Federal Reserve Bank
of Minneapolis

On November 28, 2023, the Conference of Chairs elected Corey Thomas, chair of the Federal Reserve Bank of Boston,
as chair of the conference’s executive committee for 2024. The conference also elected Patrick Dujakovich, chair of the
Federal Reserve Bank of Kansas City, as vice chair, and Jodie McLean, chair of the Federal Reserve Bank of Richmond,
as the executive committee’s third member.

Federal Reserve System Organization 139

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
2023 are listed below.2
Conference of First Vice Presidents—2023
Ron Feldman, Chair,

Jamica Quillin, Secretary,

Federal Reserve Bank of Minneapolis

Becky Bareford, Vice Chair,

Nina Mantilla, Assistant Secretary,

Federal Reserve Bank of Richmond

On November 16, 2022, the conference elected Ron Feldman, Federal Reserve Bank of Minneapolis, as chair and Becky
Bareford, Federal Reserve Bank of Richmond, as vice chair for 2024. The conference also elected Jamica Quillin, Federal
Reserve Bank of Minneapolis, as secretary and Nina Mantilla, Federal Reserve Bank of Richmond, as assistant secretary.

141

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 2023 are in the
list below.

Meeting Minutes
• Meeting held on January 31–February 1, 2023
https://www.federalreserve.gov/monetarypolicy/files/fomcminutes20230201.pdf
• Meeting held on March 21–22, 2023
https://www.federalreserve.gov/monetarypolicy/files/fomcminutes20230322.pdf
• Meeting held on May 2–3, 2023
https://www.federalreserve.gov/monetarypolicy/files/fomcminutes20230503.pdf
• Meeting held on June 13–14, 2023
https://www.federalreserve.gov/monetarypolicy/files/fomcminutes20230614.pdf
• Meeting held on July 25–26, 2023
https://www.federalreserve.gov/monetarypolicy/files/fomcminutes20230726.pdf
• Meeting held on September 19–20, 2023
https://www.federalreserve.gov/monetarypolicy/files/fomcminutes20230920.pdf
• Meeting held on October 31–November 1, 2023
https://www.federalreserve.gov/monetarypolicy/files/fomcminutes20231101.pdf
• Meeting held on December 12–13, 2023
https://www.federalreserve.gov/monetarypolicy/files/fomcminutes20231213.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-

142 110th Annual Report | 2023

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, 2023, are available at
https://www.federalreserve.gov/monetarypolicy/files/FOMC_RulesAuthPamphlet_202202.pdf. The rules and authorizations put into effect subsequently in 2023 are available at https://www.federalreserve.gov/monetarypolicy/files/
FOMC_RulesAuthPamphlet_202301.pdf.

143

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, 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.

144 110th Annual Report | 2023

The OIG has continued to focus resources on oversight of the Board’s pandemic response efforts,
including the Board’s emergency lending programs and facilities. The OIG has completed multiple
audits and evaluations in key risk areas and continued to investigate alleged fraud related to
these programs.
During 2023, the OIG issued 19 reports (table C.1). Because of the sensitive nature of some of
the material, 3 of the 19 reports are nonpublic, as indicated. In addition, the OIG issued to the
Board and to the CFPB five memorandums on information technology issues. Because of the sensitive nature of some of the material, three of these information technology memorandums are
nonpublic. The OIG also issued an OIG Insights paper and two semiannual reports to Congress,
and it 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, 40 investigations were opened and 53 investigations were closed during the year. OIG investigative work

Table C.1. OIG reports issued in 2023
Report title

Month issued

The Board Can Enhance Enterprise Practices for Data Management Roles and Responsibilities

January

Federal Financial Institutions Examination Council Financial Statements as of and for the Years Ended
December 31, 2022 and 2021, and Independent Auditors’ Reports

February

Board of Governors of the Federal Reserve System Financial Statements as of and for the Years Ended
December 31, 2022 and 2021, and Independent Auditors’ Reports

March

Independent Accountants’ Report on the CFPB’s Fiscal Year 2022 Compliance With the Payment Integrity
Information Act of 2019

March

Following Established Processes Helped FRB New York and the Board Reduce Risks Associated With Lending
Facility Contracts

April

The Board Can Further Enhance the Design and Effectiveness of the FOMC’s Investment and Trading Rules

April

Board Purchase Card Program Controls Are Generally Effective and Can Be Further Strengthened

May

Report on the Independent Audit of the CFPB’s Agile Systems/Software Development Life Cycle Processes

May

The Board Can Enhance Its Procedures and Controls for Protecting Confidential Information in Supervision Central

June

Results of Scoping of the Evaluation of the Board and Reserve Banks’ Cybersecurity Incident Response
Process for Supervised Institutions

June

The Board and FRB Boston Generally Followed Their Process for Purchasing MSLP Loan Participations but
Can Formally Document Some Key Processes

July

The CFPB Can Improve Its Controls for Exercising Contract Options

September

Material Loss Review of Silicon Valley Bank

September

Review of the Supervision of Silvergate Bank (nonpublic report)

September

2023 Audit of the CFPB’s Information Security Program

September

2023 Audit of the Board’s Information Security Program

September

FRB Boston Followed Its Processes for Monitoring the Credit Quality of Main Street Lending Program Loans

October

Results of Security Control Testing of a Videoconferencing Platform Used by the Board (nonpublic report)

November

Results of Scoping of the Evaluation of the Board’s Intelligence Programs (nonpublic report)

December

Federal Reserve System Audits 145

resulted in 50 arrests, 5 criminal complaints, 30 criminal informations,1 28 indictments, 63 convictions, and 3 prohibitions from the banking industry, as well as $568,974,114 in criminal fines,
restitution, and special assessments. 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 2023, the GAO completed 11 projects that involved the Federal Reserve (table C.2).
Fourteen projects were ongoing as of December 31, 2023 (table C.3).
For more information and to view GAO reports, visit the GAO’s website at https://www.gao.gov.

A criminal information is a written accusation made by a public prosecutor, without the intervention of a grand jury.

146 110th Annual Report | 2023

Table C.2. GAO reports issued in 2023
Report title

Report number

Month publicly released

Financial Technology: Products Have Benefits and Risks to Underserved Consumers,
and Regulatory Clarity Is Needed

GAO-23-105536

March

Bank Regulation: Preliminary Review of Agency Actions Related to March 2023
Bank Failures

GAO-23-106736

April

Blockchain in Finance: Legislative and Regulatory Actions Are Needed to Ensure
Comprehensive Oversight of Crypto Assets

GAO-23-105346

July

Financial Stability Oversight Council: Assessing Effectiveness Could Enhance
Response to Systemic Risks

GAO-23-105708

September

Financial Technology: Agencies Can Better Support Workforce Expertise and Measure
the Performance of Innovation Offices

GAO-23-106168

October

Credit Cards: Pandemic Assistance Likely Helped Reduce Balances, and Credit Terms
Varied Among Demographic Groups

GAO-23-105269

October

Financial Audit: Bureau of the Fiscal Service’s FY 2023 and FY 2022 Schedules of
Federal Debt

GAO-24-106340

November

Economic Downturns: Effects of Automatic Spending Programs and Taxes

GAO-24-106056

December

Work Arrangements: Improved Collaboration Could Enhance Labor Force Data

GAO-24-105651

December

Small Business Administration: Procedures for Reporting on Veteran-Owned
Businesses Need Improvement

GAO-24-106071

December

Federal Reserve Lending Programs: Status of Monitoring and Main Street
Lending Program

GAO-24-106482

December

Table C.3. Projects active at year-end 2023
Subject of project

Month initiated

Status

Technology needs of community development financial institutions and minority
depository institutions

October 2022

Closed 4/11/24

Federal Reserve stress tests and capital requirements

October 2022

Open

Eviction data collection

March 2023

Closed 2/28/24

Currency Transaction Reports

March 2023

Open

Communication and escalation of supervisory concerns

May 2023

Open

Use of minority- and women-owned asset management firms in federal retirement
plans and endowments

June 2023

Open

Communication and escalation of supervisory concerns for Silicon Valley Bank and
Signature Bank

July 2023

Closed 3/6/24

The Federal Home Loan Banks and the failures of First Republic Bank, Signature
Bank, and Silicon Valley Bank

August 2023

Closed 4/8/24

The 2023 systemic risk determinations

August 2023

Open

Older workers’ employment and finances during the pandemic

September 2023

Open

Executive compensation at failed banks

October 2023

Open

Debt limit impasse effects

November 2023

Open

Peer-to-peer payment app scams

November 2023

Open

Authorized payment fraud

November 2023

Open

147

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 2023 budget performance of the Board and Reserve Banks and on their
2024 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’ 2023 budgeted, 2023 actual, and 2024 budgeted operating expenses and employment.2

2023 Budget Performance
In carrying out its responsibilities in 2023, the Federal Reserve System incurred $6,459.6 million
in net expenses. Total System operating expenses of $7,724.5 million were offset by
$1,264.9 million in revenue from priced services and claims for reimbursement. Total 2023
System operating expenses, net of revenue and reimbursements, were $3.2 million, or 0.05 percent, more than the amount budgeted for 2023.

2024 Operating Expense Budget
Budgeted 2024 System operating expenses of $7,123.7 million, net of revenue and reimbursements, are $664.1 million, or 10.3 percent, higher than 2023 actual expenses. The Reserve Bank
budgets comprise almost three-quarters of the System budget (figure D.1.). Budgeted 2024 revenue from priced services is 1.2 percent lower than 2023 actual revenue.

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 2023 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.

148 110th Annual Report | 2023

Table D.1. Total operating expenses of the Federal Reserve System, net of receipts and claims for
reimbursement, 2023–24
Millions of dollars, except as noted

Item

2023
budget

2023
actual

Variance
2023 actual to
2023 budget
Amount

Board

2024
budget

Percent

Variance
2024 budget to
2023 actual
Amount

Percent

989.6

994.1

4.5

0.5

1,044.1

50.0

5.0

37.9

34.6

–3.3

–8.6

39.0

4.3

12.5

Reserve Banks3

5,646.2

5,648.3

2.1

0.0

6,053.2

404.9

7.2

Currency4

1,066.5

1,047.6

–18.9

–1.8

1,368.6

321.0

30.6

7,740.1

7,724.5

–15.6

–0.2

8,504.9

780.4

10.1

495.8

507.3

11.5

2.3

501.4

–5.9

–1.2

787.9

757.6

–30.3

–3.8

879.8

122.2

16.1

1,283.7

1,264.9

–18.8

–1.5

1,381.2

116.3

9.2

6,456.4

6,459.6

3.2

0.0

7,123.7

664.1

10.3

Office of Inspector General2

Total System operating expenses
Revenue from priced services
Claims for reimbursement

Revenue and claims for
reimbursement6
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
In December 2023, the Board approved a 2023 budget authority of $989.6 million, an increase from the previously approved budget of
$960.8 million.
2
Reflects the total operating budget net of expected earned income from the Consumer Financial Protection Bureau (CFPB). For 2023, the
Office of Inspector General (OIG) conducted more work related to the CFPB than planned, which drove the variance.
3
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.
4
In the previous report, the 2022 and 2023 currency values reflected only single-cycle operating expenses. In the current report, 2023 and
2024 currency values reflect the sum of single-cycle and multicycle project costs. However, the Bureau of Engraving and Printing’s singlecycle and multicycle project budgets are tracked separately, as shown in tables D.13 and D.14, respectively.
5
Reimbursable claims include the expenses of fiscal agency. In 2023 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 $79.8 million in 2023 and $47.4 million
in 2024.
6
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.) Includes total operating
expenses of the National Information Technology (NIT) support function. In past years, NIT was referred to as the Federal Reserve Information Technology (FRIT) office. In 2023, the Office of Employee Benefits was consolidated into the Federal Reserve Bank of Atlanta.

Trends in Expenses and Employment
From the actual 2014 amount to the budgeted 2024 amount, the total operating expenses of the
Federal Reserve System have increased an average of 5.3 percent annually (figure D.2.), which is
slightly higher than the 10-year growth rate between 2013 and 2023. The total rate of growth in
Federal Reserve System expenses reflects investments in technology initiatives, payment infrastructure modernization efforts, the next-generation currency-processing program (NextGen), and
resources to support the supervision portfolio and other national strategic initiatives (figure D.3.).3

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 149

Table D.2. Employment in the Federal Reserve System, 2023–24

Item

2023
budget

2023
actual

3,101

3,116

Variance
2023 actual to
2023 budget
Amount

Board1
Office of Inspector General
Reserve Banks2
Currency
Total System employment

Variance
2024 budget to
2023 actual

2024
budget

Percent

0.5

3,148

Amount

Percent

1.0

136

135

–1

–0.6

143

5.8

20,733

20,680

–53

-0.3

21,238

558

2.7

–3

–13.6

26.3

23,991

23,950

–41

–0.2

24,553

603

2.5

Note: Employment numbers presented are full-time equivalents (FTE). FTE represent an employee's scheduled hours divided by the employer’s
hours for a full-time workweek.
1
The 2023 budget amount was updated to reflect budget authority approved by the Board in December 2023.
2
Includes employment of NIT support function. In 2023, the Office of Employee Benefits (OEB) was consolidated into the Federal Reserve Bank of
Atlanta. In past years, NIT was referred to as the Federal Reserve Information Technology (FRIT) office.

Expense growth in the monetary policy area
represents continued investment in regional

Figure D.1. Distribution of budgeted expenses
of the Federal Reserve System, 2024

economic research, and resources to support
effective market operations and monitoring
activities.

Reserve Banks,
71.2%

Board of Governors
and OIG, 12.7%
Currency,
16.1%

Treasury services expenses have increased to
meet expanding scope and evolving needs,
including business and technology modernization of payment services, financing and securities services, and accounting and reporting

OIG: Office of Inspector General.

services, as well as significant investment in
infrastructure and technology services.
Expenses for services to financial institutions continue to increase as a result of the NextGen program. More recently, increased demand for cash and social distancing protocols related to the
COVID-19 pandemic resulted in higher personnel costs for cash operations and other related
expenses for essential on-site staff. 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

150 110th Annual Report | 2023

Figure D.2. Total expenses of the Federal
Reserve System, 2014–24

Figure D.3. Employment in the Federal Reserve
System, 2014–24

Billions of dollars
25

Thousands of persons

Current dollars!

8
7

6
2014 dollars1!

5
4

19
17

3
15

2014

2016

2018

2020

2022

2024

1
0
2014

2016

2018

2020

2022

2024

Note: For 2024, budgeted. Includes expenses of
the OIG.
1. Calculated with the GDP price deflator.

Note: For 2024, budgeted. From 2014 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 and
2024, employment numbers for all entities are represented by full-time employment.

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. Most recently,
resource additions have been added to align with supervisory portfolio growth, increased complexity
of institutions, and other strategic initiatives impacting the banking industry.
Growth in fee-based services is primarily for investments in the payment infrastructure modernization efforts, including the FedNowSM Service initiative, and investments associated with multiyear
technology initiatives to modernize processing platforms for Fedwire and automated clearinghouse (ACH).4

In July 2023, the Federal Reserve launched 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.

Federal Reserve System Budgets 151

2024 Capital Budgets
The capital budgets for the Board and Reserve Banks total $389.9 million and $913.8 million,
respectively.5 As in previous years, the 2024 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 2024–27 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 2024, the recommended growth target included known changes in
the run-rate of the Board’s ongoing operations. 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. Existing and new initiatives are evaluated, refined, and
prioritized.
• DFM staff review initial budget requests submitted by divisions and collaborate with all divisions
and functional areas to achieve the growth target.7
• 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.

The capital budget reported for the Board includes single-year capital expenditures and 2024 expected capital expenditures from multiyear projects of the Board and the OIG. The capital budget reported for the Reserve Banks includes the
amounts budgeted for the National Information Technology support function and the Office of Employee Benefits. In past
years, National Information Technology was referred to as the Federal Reserve Information Technology office (FRIT). In
2023, the Office of Employee Benefits was consolidated into the Federal Reserve Bank of Atlanta.
The Board approved the plan published in December 2023 and is located at https://www.federalreserve.gov/
publications/files/2024-2027-gpra-strategic-plan.pdf.
Monetary Policy and Financial Stability, Supervision and Regulation, Payment System and Reserve Bank Oversight, Consumer Protection and Community Development, and Mission Advancement.

152 110th Annual Report | 2023

• Throughout the year, DFM staff monitor expenses through financial forecasts which provide
insight into budgetary pressures. Staff analyze budgetary variances and pressures and communicate the results to senior management.
Tables D.3, D.4, and D.5 summarize the Board’s 2023 budgeted and actual expenses and its
2024 budgeted expenses by operating area; division, office, or special account; and account classification, respectively. Table D.6 summarizes the Board’s 2023 budgeted and actual authorized
positions and its budgeted positions for 2024. Each table includes a line item for the Office of
Inspector General (OIG), which is discussed later in this section.

2023 Budget Performance
The 2023 Board operating budget included measured risks to confront perennial underruns; however, by yearend, these risks materialized. In December 2023, the Board approved a 2023 budget
authority of $989.6 million. Total expenses for Board operations were $994.1 million, which were
$4.5 million, or 0.5 percent, higher than the budget authority. Board members were briefed on
final 2023 performance.
The Board’s 2023 single-year capital spending was $16.3 million, less than budgeted by $5.4 million, or 25.0 percent, driven by lower spending on lifecycle replacements of furniture and equipment. Multiyear capital projects spending in 2023 was higher than budgeted by $92.1 million, or
60.6 percent, driven by early construction activities for building improvement projects. Although
2023 expenditures for multiyear capital projects were higher than budgeted, multiyear projects are

Table D.3. Operating expenses of the Board of Governors, by operating area, 2023–24
Millions of dollars, except as noted

2023
budget

Item

2023
actual

Variance
2023 actual to
2023 budget
Amount

Percent

2024
budget

Variance
2024 budget to
2023 actual
Amount

Percent

Monetary policy and financial stability

419.9

418.0

(1.9)

–0.5

445.7

27.7

6.6

Supervision and regulation

426.6

432.2

5.6

1.3

437.2

5.0

1.2

Payment system and Reserve Bank
oversight

84.9

85.1

0.2

86.4

1.3

1.6

Consumer protection and community
development

58.2

58.8

0.6

1.1

74.8

15.9

27.1

989.6

994.1

4.5

0.5

1,044.1

50.0

5.0

37.9

34.6

(3.3)

(8.6)

39.0

4.3

12.5

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. Figures reflect the implementation of a new cost accounting framework in July 2023, which may cause adjustments between operating areas. Payment system and
Reserve Bank oversight is an operating area unique to the Board.
1
Includes the Survey of Consumer Finances.

Federal Reserve System Budgets 153

Table D.4. Operating expenses of the Board of Governors, by division, office, or special account,
2023–24
Millions of dollars, except as noted

Division, office, or special account

Research and Statistics

2023
budget

Variance
2023 actual to
2023 budget

2023
actual

Amount

Percent

2024
budget

Variance
2024 budget to
2023 actual
Amount

Percent

107.5

107.4

-0.1

(0.1)

115.3

7.9

7.4

International Finance

44.3

0.0

(0.1)

47.3

3.0

6.8

Monetary Affairs

49.9

50.2

0.4

0.8

54.3

4.0

8.0

Financial Stability

20.4

0.1

0.4

22.6

2.1

10.4

Supervision and Regulation

132.5

131.2

–1.3

(1.0)

140.7

9.5

7.2

Consumer and Community Affairs

40.5

40.2

–0.3

(0.6)

43.3

3.1

7.6

Reserve Bank Operations and
Payment Systems

52.0

51.4

–0.6

(1.2)

55.3

4.0

7.7

Board Members

30.6

30.8

0.2

0.7

32.5

1.6

5.3

Secretary

12.7

12.6

–0.1

(0.6)

13.5

0.9

7.1

Legal

39.0

38.8

–0.1

(0.3)

42.6

3.8

9.8

Chief Operating Officer

15.3

0.0

0.3

16.7

1.4

8.9

Financial Management

16.4

16.5

0.1

0.7

17.8

1.4

8.2

Information Technology

158.2

158.0

–0.2

(0.1)

165.9

7.9

5.0

Management

190.2

191.1

1.0

0.5

200.4

9.3

4.8

Centrally managed benefits1

33.4

35.4

2.0

6.1

32.0

(3.5)

(9.8)

Extraordinary items

65.1

70.2

5.1

7.8

66.9

(3.3)

(4.7)

Savings and reallocations

(19.4)

(21.9)

–2.5

12.8

(25.0)

(3.0)

13.8

1.3

2.1

0.7

52.0

2.1

0.0

2.4

989.6

994.1

4.5

0.5

1,044.1

50.0

5.0

37.9

34.6

–3.3

(8.6)

39.0

4.3

12.5

Survey of Consumer Finances2
Total, Board operations
Office of Inspector General
1

Includes centrally managed Boardwide benefits programs, such as accrued annual leave, academic assistance, relocation, and retirement
benefits, which fluctuate because of changes in actuarial assumptions and demographics.
The survey collects information about family incomes, net worth, balance sheet components, credit use, and other financial outcomes, and
is conducted every three years.

still projected to be within their total project budgets. Table D.7 summarizes the Board’s budgeted
and actual capital expenditures for 2023 and 2024.

2024 Operating Expense Budget
The 2024 budget for Board operations is $1,044.1 million, which is $50.0 million, or 5.0 percent,
higher than 2023 actual expenses. Staff formulated the operating budget to advance the organization’s priorities across five goal areas to maintain the stability, integrity, and efficiency of the
nation’s monetary, financial, and payment systems.

154 110th Annual Report | 2023

Table D.5. Operating expenses of the Board of Governors, by account classification, 2023–24
Millions of dollars, except as noted

Account classification
Personnel services
Salaries
Outside agency help
Retirement, Insurance, and Benefits
Pension and Post-Retirement Benefits
Subtotal, personnel services

Variance
2023 actual to
2023 budget
Amount
Percent

2024
budget

Variance
2024 budget to
2023 actual
Amount
Percent

2023
budget

2023
actual

565.3
48.3
109.3
15.3
738.2

567.6
47.8
110.7
15.1
741.1

2.2
–0.5
1.4
–0.3
2.9

0.4
–1.1
1.3
–1.7
0.4

607.6
50.3
114.9
14.5
787.2

40.0
2.5
4.2
–0.6
46.1

7.1
5.2
3.8
–4.0
6.2

Goods and services
Contractual Services and Professional Fees
Rentals
Data, News, and Research
Software
Furniture, Equipment, Postage,
and Supplies
Repairs and Maintenance
Utilities
Travel
Other Expenses
Depreciation/Amortization
Support and overhead allocations1
Earned Revenue
Subtotal, goods and services
Total, Board operations

66.7
39.0
23.1
36.0

65.7
38.3
24.1
37.7

-1.0
-0.7
0.9
1.7

–1.5
–1.7
3.9
4.6

54.3
42.3
28.5
40.8

–11.5
4.0
4.4
3.1

–17.4
10.4
18.3
8.2

7.9
12.2
9.0
7.7
20.7
56.2
-21.9
–5.3
251.4
989.6

8.2
12.4
9.1
8.7
19.2
55.9
-21.9
–4.4
253.0
994.1

0.3
0.2
0.1
1.0
–1.5
–0.3
0.0
0.9
1.6
4.5

4.1
1.7
0.8
13.1
–7.5
–0.4
0.0
–16.8
0.6
0.5

8.4
13.5
9.9
7.9
22.0
57.6
-22.9
–5.3
256.9
1,044.1

0.2
1.1
0.9
-0.8
2.8
1.7
–1.0
–0.8
4.0
50.0

1.9
8.6
9.4
–9.3
14.6
3.1
4.6
19.1
1.6
5.0

Office of Inspector General (OIG)
Personnel services
Goods and services2
Subtotal, excluding operating income
Operating income3
Total, OIG operations

33.0
21.1
54.1
–16.2
37.9

33.5
20.6
54.1
–19.5
34.6

0.5
–0.5
0.0
–3.3
–3.3

1.7
–2.5
0.0
20.1
–8.6

36.2
22.8
59.0
–20.1
39.0

2.7
2.2
4.9
–0.6
4.3

8.0
10.9
9.1
3.0
12.5

1
2
3

Includes the transfer of attributable support and overhead expenses from the Board operating budget to the OIG and Currency budgets.
Includes Board support and overhead allocations to the OIG.
Includes earned income from the CFPB.

The 2024 budget includes funding for the Board’s compensation and benefit programs, moderate
employment growth as vacancies are filled to meet critical needs, contractors to support strategic
projects, and continuing existing goods and services. New initiatives will be funded through offsets
from existing operations and projects.
Authorized positions for 2024 are 3,007, an increase of 17 positions from the 2023 authorized number.

Federal Reserve System Budgets 155

Table D.6. Positions authorized by the Board of Governors, by division, office, or special account,
2023–24

Division, office, or special account

2023
budget

2023
actual

Variance
2023 actual to
2023 budget
Amount

2024
budget

Percent

Variance
2024 budget to
2023 actual
Amount

Percent

Research and Statistics

364

366

0.5

368

0.5

International Finance

168

0.0

170

1.2

Monetary Affairs

186

188

1.1

190

1.1

Financial Stability

0.0

2.5

Supervision and Regulation

497

0.0

499

0.4

Consumer and Community Affairs

138

0.0

139

0.7

Reserve Bank Operations and
Payment Systems

190

0.0

191

0.5

Board Members

124

126

1.6

127

0.8

–2

–3.6

1.9

136

139

2.2

139

0.0

Secretary
Legal
Chief Operating Officer
Financial Management

0.0

Information Technology

419

0.0

420

0.2

Management

485

0.0

485

0.0

–7

–70.0

66.7

2,990

0.0

3,007

0.6

142

0.0

152

7.0

0.0

9.1

Extraordinary items1
Total, Board operations
Office of Inspector General
Currency

Note: Budget represents authorized position count at the beginning of the year, and actual represents authorized position count at year-end.
1
Includes the centralized position pool used for strategic areas of growth.

2024 Capital Budgets
The Board’s 2024 single-year capital budget is $25.1 million, which is $8.8 million, or 54.1 percent, higher than 2023 actual capital expenditures. The growth is driven by the deferral of some
purchases from 2023 to 2024. The budget includes routine replacements of equipment, software,
and building components.
The Board’s multiyear capital budget is driven by building improvement projects. Expected capital
expenditures in 2024 total $364.3 million and reflect the Board’s commitment to provide a
secure, modern environment that meets the needs of the Board’s workforce and leverages opportunities to increase collaboration, efficiency, productivity, and sustainability. Table D.7 summarizes
the Board’s budgeted and actual capital expenditures for 2023 and 2024.

156 110th Annual Report | 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
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 separate and
apart from the Board’s budget. The OIG presents its budget directly to the Board for approval.

2023 Budget Performance
Total expenses for OIG operations, excluding operating income, were $54.1 million, which were in
line with the approved budget.
Operating income was $3.3 million, or 20.1 percent, higher than the approved budget amount. The
OIG conducted more work related to the Consumer Financial Protection Bureau (CFPB) than
planned; in addition, the office’s increased oversight and investigative responsibilities continue to
subside related to the Board’s programs created in response to the COVID-19 pandemic. Including
operating income from the CFPB, total expenses for OIG operations were $34.6 million in 2023.
The OIG’s single-year capital spending was $0.1 million, less than budgeted by $0.1 million or
54.6 percent. Table D.5 summarizes the OIG’s 2023 budgeted and actual expenses and table D.7
summarizes the OIG’s budgeted and actual capital expenditures for 2023 and 2024.

2024 Operating Expense Budget
The 2024 budget for OIG operations, excluding operating income, is $59.0 million, which is
$4.9 million, or 9.1 percent, higher than 2023 actual expenses. The increase is driven by higher
authorized staffing levels, funding for compensation and benefit programs, and a lower budgeted
vacancy rate to reflect recent employment trend data. Including operating income from the CFPB,
the 2024 budget for OIG operations is $39.0 million.

2024 Capital Budget
The OIG’s single-year capital budget is $0.5 million, which is $0.4 million higher than 2023 actual
capital expenditures. The budget includes existing vehicle replacements, equipment purchases,
and leasehold improvements for the San Francisco regional office. Table D.5 summarizes the OIG’s
2024 budgeted expenses, and table D.7 summarizes the OIG’s budgeted and actual capital expenditures for 2024.
8

The plan is located at https://oig.federalreserve.gov/strategic-plan.htm.

Federal Reserve System Budgets 157

Table D.7. Capital expenditures of the Board of Governors, by capital type, 2023–24

Item

2023
budget

Variance
2023 actual to
2023 budget

2023
actual

Amount

Percent

2024
budget

Variance
2024 budget to
2023 actual
Amount

Percent

Board
Single-year capital expenditures

21.7

16.3

–5.4

–25.0

25.1

8.8

54.1

Multiyear capital expenditures

151.8

243.9

92.1

60.6

364.3

120.4

49.4

Total capital expenditures

173.5

260.2

86.6

49.9

389.4

129.2

49.7

Single-year capital expenditures

0.2

0.1

-0.1

–54.6

0.5

0.4

395.7

Multiyear capital expenditures

0.0

n/a

0.0

n/a

Total capital expenditures

0.2

0.1

–0.1

-54.6

0.5

0.4

395.7

Board and OIG total capital
expenditures

173.7

260.3

86.5

49.8

389.9

129.6

49.8

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.

The OIG has 152 authorized positions for 2024, an increase of 10 from the 2023 authorized number.

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:
• contributing to the formulation of monetary policy and enhancing monetary policy implementation to become more effective, flexible, and resilient
• 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, to the U.S. Treasury as its fiscal agent, and to the public
The Reserve Bank budget process is as follows:
• The Conference of Presidents, working closely with the Conference of First Vice Presidents
(CFVP), reorganized and simplified its committee structure establishing five umbrella commit-

158 110th Annual Report | 2023

tees responsible for major operational areas and functional areas.9 The leader of each umbrella
committee, as well as the chair and vice chair of the CFVP, sits on the Committee on Spend
Stewardship (CSS), which is charged by the COP with aligning the budget with strategic priorities
at the System level.
• The CSS 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 the budget year.
• With guidance from the CSS, the 12 Reserve Banks develop budgets that reflect the strategic
priorities, relying heavily on framing and making appropriate tradeoffs. These budgets are
reviewed by each Reserve Bank’s senior leadership and respective board of directors.
• The Reserve Banks submit for Board review preliminary budget information, including documentation to support the budget request.
• Board staff analyzes these budgets both individually and, in the aggregate, and then provide its
recommendations to the BAC.
• 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’ 2023 budgeted and actual expenses
and 2024 budgeted expenses by Reserve Bank, functional area, and account classification.10 Table D.11 shows the Reserve Banks’ budgeted and actual employment for 2023 and budgeted employment for 2024. In addition, table D.12 shows the Reserve Banks’ budgeted and
actual capital expenditures for 2023 and budgeted capital for 2024.

The five umbrella committees are (1) Governance and Risk; (2) People; (3) Payments; (4) Technology and Operations;
and (5) Research, Banking, Communities, and Communications.
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”).

Federal Reserve System Budgets 159

Table D.8. Operating expenses of the Federal Reserve Banks, by District, 2023–24
Millions of dollars, except as noted

District

Variance
2023 actual to
2023 budget

2023
actual

Amount

Percent

407.7

410.7

2.97

0.7

438.2

27.5

6.7

Amount
Boston
New York

2024
budget

Variance
2024 budget to
2023 actual

2023
budget

Percent

1,291.3

1,290.3

–1.03

–0.1

1,364.1

73.8

5.7

Philadelphia

232.8

235.1

2.28

1.0

243.9

8.8

3.8

Cleveland

304.2

303.1

–1.09

–0.4

330.0

26.9

8.9

Richmond

394.2

390.8

–3.42

–0.9

418.4

27.6

7.1

Atlanta

476.6

485

8.39

1.8

530.4

45.4

9.4

Chicago

540.1

527.3

–12.79

–2.4

557.6

30.3

5.7

St. Louis

427.9

424.1

–3.84

–0.9

491.6

67.5

15.9

Minneapolis

257.1

265.4

8.27

3.2

302.2

36.8

13.9

Kansas City

487.9

486.3

–1.61

–0.3

484.9

–1.4

–0.3

Dallas

302.2

307.7

5.54

1.8

334.5

26.8

8.7

San Francisco

524.1

522.5

–1.57

–0.3

557.2

34.7

6.6

5,646.2

5,648.3

2.1

0.0

6,053.2

404.9

7.2

Total Reserve Bank operating expenses

Note: Includes expenses of the NIT 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. In past years, National IT was referred to as the Federal Reserve Information Technology
office (FRIT).

Table D.9. Operating expenses of the Federal Reserve Banks, by operating area, 2023–24
Millions of dollars, except as noted

Variance
2023 actual to
2023 budget

2023
actual

Amount

Percent

Monetary and economic policy

943.2

945.0

1.8

0.2

928.8

−16.2

−1.7

Services to the U.S. Treasury and other
government agencies

721.3

701.9

−19.4

−2.7

819.8

117.9

16.8

Services to financial institutions and
the public1

1,519.8

1,526.3

6.5

0.4

1,744.7

218.4

14.3

Supervision and regulation

Operating area

Amount

2024
budget

Variance
2024 budget to
2023 actual

2023
budget

Percent

1,722.1

1,734.2

12.1

0.7

1,784.5

50.3

2.9

Fee-based services to financial
institutions2

739.9

740.9

1.0

0.1

775.2

34.3

4.6

Total Reserve Bank operating
expenses3

5,648.2

5,648.3

2.1

0.0

6,053.2

404.9

7.2

1
2
3

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).

160 110th Annual Report | 2023

Table D.10. Operating expenses of the Federal Reserve Banks, by account classification, 2023–24
Millions of dollars, except as noted

Variance
2023 actual to
2023 budget

2024
budget

Variance
2024 budget to
2023 actual

Account
classification

2023
budget

2023
actual

Amount

Percent

Amount

Percent

Salaries and other benefits1

4,195.4

4,230.2

34.8

0.8

4,436.6

206.5

4.9

Building

301.8

284.5

−17.2

−5.7

313.4

28.9

10.1

Software costs

498.7

493.1

−5.6

−1.1

579.6

86.5

17.5

Equipment

231.2

250.3

19.1

8.3

267.3

17.0

6.8

Recoveries

−236.2

−233.3

2.9

−1.2

−241.9

−8.6

3.7

Expenses capitalized

−164.8

−159.2

5.6

−0.4

−202.0

−42.8

26.9

820.2

782.7

−37.5

−4.6

900.1

117.4

15.0

5,646.2

5,648.3

2.1

0.0

6,053.2

404.9

7.2

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.

2023 Budget Performance
Total 2023 operating expenses for the Reserve Banks were $5,648.3 million, which is $2.1 million, or 0.04 percent, more than the approved 2023 budget of $5,646.2 million. Budget performance reflects higher-than-planned expenses for the data center modernization effort; severance
and outside agency help expenses to address staffing alignment across the System; and to a
lesser extent, expenses related to the administration of the Paycheck Protection Program Liquidity
Facility program. These increases were offset by lower-than-anticipated postretirement expenses
and lower-than-planned facilities expenses. Actual full-time equivalents (FTE) was 20,680, an
underrun of 53 FTE, or 0.3 percent, from 2023 budgeted staffing levels. The Reserve Banks’
2023 capital expenditures were less than budgeted by $242.7 million, or 23.7 percent, primarily
driven by delayed and canceled projects.

2024 Operating Expense Budget
The 2024 operating budgets of the Reserve Banks total $6,053.2 million, which is $404.9 million, or 7.2 percent, higher than 2023 actual expenses.11 Growth in monetary policy expense
reflects increased resources dedicated to researching inflation and enhancing existing and developing new inflation indicators. Treasury growth is primarily attributable to fees, software, and personnel for temporary resources and vendor support to meet System and Treasury deadlines for
11

On December 15, 2023, the Board approved the 2024 Reserve Bank operating budgets totaling $6,053.2 million. Additional information is available at https://www.federalreserve.gov/foia/budgets.htm.

Federal Reserve System Budgets 161

Table D.11. Employment at the Federal Reserve Banks, by District, OEB and at NIT, 2023–24
Variance
2023 actual to
2023 budget

2023
actual

Amount

Percent

Amount

Percent

Boston

1,283

1,277

−6

−0.5

1,296

1.4

New York

2,981

2,958

−23

−0.8

3,073

116

3.9

857

878

2.5

884

0.6

Cleveland

1,104

1,073

−31

−2.8

1,114

3.9

Richmond

1,547

1,555

0.5

1,617

4.0

Atlanta

1,715

1,752

2.1

1,780

1.6

Chicago

1,679

1,693

0.8

1,726

1.9

St. Louis

1,447

1,479

2.2

1,508

1.9

Minneapolis

1,066

1,112

4.3

1,147

3.1

Kansas City

2,132

2,055

−77

−3.6

2,072

0.9

Dallas

1,281

1,310

2.3

1,343

2.5

District

Philadelphia

San Francisco
Total, all Districts
National IT
Office of Employee Benefits
Total

2024
budget

Variance
2024 budget to
2023 actual

2023
budget

1,864

1,819

−45

−2.4

1,910

5.0

18,955

18,960

0.0

19,468

508

2.7

1,719

1,720

0.0

1,770

2.8

n/a

20,733

20,680

−0.3

21,238

−53

558

n/a
2.7

Note: In 2023, the Office of Employee Benefits was consolidated into the Federal Reserve Bank of Atlanta. In past years, National IT was
referred to as the Federal Reserve Information Technology office (FRIT).
n/a Not applicable.

cloud migrations, security mandates, and technical debt remediation. Cash investments reflect
increases across several Districts to support local implementations for the NextGen program.12
Supervision resource additions align with portfolio growth. Investments in fee-based services are
for the FedNowSM Service which, aligns with the Federal Reserve System’s commitment to modernize the nation's payment system and establish a safe and efficient foundation for the future.
Total 2024 budgeted employment for the Reserve Banks and National IT is 21,238 FTEs, an
increase of 558, or 2.7 percent, from 2023 actual employment levels.
Reserve Bank officer and staff personnel expenses for 2024 total $4,436.6 million, an increase
of $206.5 million, or 4.9 percent, from 2023 actual expenses. The increase reflects expenses
associated with additional staff, salary administration, variable pay, and retirement and other benefit costs.13

FedCash (formerly the 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 NextGen processing infrastructure.
The salary administration program includes a budgeted pool for merit increases, equity adjustments, and promotions.

162 110th Annual Report | 2023

Table D.12. Capital expenditures of the Federal Reserve Banks, by District, and of NIT, 2023–24
Millions of dollars, except as noted

District

Boston
New York

Variance
2023 actual to
2023 budget

2024
budget

Variance
2024 budget to
2023 actual

2023
budget

2023
actual

Amount

Percent

Amount

Percent

53.5

29.9

–23.6

–44.1

59.3

29.4

98.3

145.8

69.1

–76.7

–52.6

183.1

114.0

165.0

Philadelphia

15.7

7.2

–8.5

–54.1

22.4

15.2

211.1

Cleveland

29.7

32.2

2.5

8.4

31.4

–0.8

–2.5

Richmond

17.0

19.0

11.8

18.2

–0.8

–4.2

Atlanta

80.9

58.2

–22.7

–28.1

145.9

87.7

150.7

Chicago

43.8

31.7

–12.1

–27.6

30.3

–1.4

–4.4

St. Louis

39.0

32.8

–6.2

–15.9

32.9

0.1

0.3

Minneapolis

34.2

27.8

–6.43

–18.8

30.7

2.93

10.6

Kansas City

69.0

46.4

–22.6

–32.8

63.9

17.5

37.7

Dallas

45.3

29.2

–16.1

–35.5

48.1

18.9

64.7

San Francisco

134.5

107.0

–27.5

–20.4

118.2

11.2

10.5

Total, all Districts

708.4

490.5

–217.9

–30.8

784.4

293.9

59.9

National IT

179.8

155.0

–24.8

–13.8

129.4

–25.6

–16.5

Total

888.2

645.5

–242.7

–27.3

913.8

268.3

41.7

The 2024 Reserve Bank budgets include a salary administration program for eligible officers,
senior professionals, and staff totaling $131.3 million and a variable pay program totaling
$281.3 million.

2024 Capital Budgets
The 2024 capital budgets for the Reserve Banks and National IT total $913.8 million. The
increase in the 2024 capital budget is $268.4 million, or 41.6 percent, greater than the 2023
actual levels of $645.5 million, and includes ongoing, multiyear, strategic IT initiatives, investments in cash services, and building projects. Initiatives in the 2024 capital budget support the
development and deployment phase of NextGen, cash facility 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 $334.2 million in 2024 for conditional approval, requiring additional review and approval by the director of the Board’s Division of

Federal Reserve System Budgets 163

Reserve Bank Operations and Payment Systems (RBOPS) before the funds are committed.14 The
expenditures designated for conditional approval comprise several cash investments including the
development and deployment of currency processors and facility renovations as part of the
NextGen program, and funds to expand an existing cash vault and build a new cash facility. Technology projects include investments to modernize the data center and migrate applications to
cloud to increase agility, speed, resilience, and operational efficiency.

Other Capital Expenditures
Significant capital expenditures (typically expenditures exceeding $1 million) that are not designated for conditional approval include total multiyear budgeted expenditures of $1,359.5 million
for 2024 and future years, of which the single-year 2024 budgeted expenditures are $570.1 million. This category includes necessary infrastructure investments for building and IT projects, and
applications 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 72.6 million for 2024 and include building maintenance expenditures, scheduled software and
equipment upgrades, and equipment and furniture replacements.

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.15 As the
issuing authority, the Board is responsible for ensuring that there is an adequate supply of banknotes in circulation, the banknotes meet defined quality standards, and that the development of
banknote security features and new design concepts are robust against counterfeiting.
To support the Board’s role, the budget includes BEP note production costs, consistent with the
annual calendar year print order submitted by the director of RBOPS on behalf of the Board. The
budget also funds Board costs to ship new currency from the BEP to Reserve Banks, ship currency
between the Reserve Banks, and program management expenses to support long-term issuance
strategies and resiliency.16
14

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.
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 every year which is available on the Board’s website at
https://www.federalreserve.gov/paymentsystems/coin_currency_orders.htm.

164 110th Annual Report | 2023

Program management expenses include work by Board staff, with support from the Reserve
Banks, the Treasury Department, the BEP, and the U.S. Secret Service, to ensure that notes meet
quality standards and have suitable anti-counterfeit features, from production through destruction.
In addition, the Board plays a central role in protecting the integrity of, and maintaining public confidence in, U.S. currency. The U.S. Currency Program (USCP) stakeholders perform development
and testing of security features and designs in support of the next banknote family. Board staff
monitors counterfeiting threats for each denomination and conducts adversarial analysis to ensure
resistance to counterfeiting.
The currency budget also funds the Currency Education Program (CEP), which aims to protect and
maintain confidence in U.S. currency worldwide by facilitating counterfeit-detection trainings for
Reserve Bank and foreign central bank staff and providing education and information about banknote security features to the public. The CEP also conducts outreach to key stakeholders,
including commercial banks, retailers, and law enforcement agencies on USCP initiatives.
The annual currency budget process is as follows:
• Each year, under authority delegated by the Board, the director of the RBOPS submits a fiscal
year print order for notes to the director of the BEP.
• The BEP forecasts expenses for the single-cycle calendar-year and multicycle project budgets.
The single-cycle budget includes 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 the
RBOPS officer responsible for the cash program of work.
• 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.
• The BAC chair submits the proposed currency budget to Board members for review and
final action.

2023 Budget Performance
BEP Single-Cycle Operating Costs
BEP single-cycle operating costs were $858.3 million, which was $0.3 million, or 0.04 percent,
below the budgeted amount for 2023. The budget underrun in variable printing costs was offset by
a similar-sized overrun in fixed printing costs as the BEP realized capital outlays delayed from
2022. BEP support costs underran the 2023 budget largely driven by attrition of staff supporting
destruction and compliance. Additionally, the BEP’s 2023 actual operating cost included a credit of

Federal Reserve System Budgets 165

$24.2 million that resulted from Board reimbursements exceeding BEP’s actual expenditures in
2022 for paper and certain fixed costs. Absent the credit adjustment, BEP single-cycle operating
costs were $882.6 million, which was $23.9 million, or 2.8 percent, over the budgeted amount
for 2023.

Board Single-Cycle Operating Costs
Board costs were $65.3 million, which was $7.5 million, or 10.2 percent, under the budgeted
amount for 2023. The primary drivers were lower currency issuance costs for banknote transportation and an underrun in banknote development. Lower currency issuance costs were due to lowerthan-expected transportation contract price increases and fewer contingency shipments required
because inventory levels stabilized since the COVID-19 pandemic subsided. Banknote development’s underrun was primarily due to decreased membership fees for the Central Bank Counterfeit
Deterrence Group and scope changes to contracts.

2024 Budget
Table D.13 summarizes the 2024 single-cycle currency operating budget of $1,104.0 million. The
2024 single-cycle operating budget represents an increase of $180.3 million, or 19.5 percent,
from 2023 actual expenses. BEP costs associated with the printing of Federal Reserve notes are

Table D.13. Federal Reserve single-cycle currency budget, 2023–24
Millions of dollars, except as noted

Variance
2023 actual to
2023 budget

2023
actual

Amount

Percent

BEP costs1

858.7

858.3

−0.3

0.0

1,033.7

175.4

20.4

Printing Federal Reserve notes

852.5

0.0

1,027.4

174.9

20.5

BEP fixed printing costs

587.0

0.0

665.5

78.5

13.4

BEP variable printing costs

Item

Amount

2024
budget

Variance
2024 budget to
2023 actual

2023
budget

Percent

265.5

0.0

361.9

96.4

36.3

BEP support costs

6.2

5.9

−0.3

−4.8

6.3

0.5

8.0

Currency reader

1.0

0.0

3.7

1.1

0.1

11.4

Destruction and compliance

5.2

4.8

-0.3

−6.5

5.2

0.4

7.3

Board costs

72.8

65.3

−7.5

−10.2

70.2

4.9

7.6

Currency issuance2

33.6

28.4

−5.2

−15.6

31.7

3.2

11.4

Banknote development3

32.2

31.0

−1.3

−4.0

32.6

1.6

5.2

6.9

5.9

−0.9

−13.5

6.0

0.1

1.4

931.4

923.6

−7.8

−0.8

1,104.0

180.3

19.5

Currency education3
Operating budget
1

2
3

BEP costs (budget and actual) reflect Board reimbursements to the BEP, which may vary from BEP's actual expenses. Annually, a true-up
process is in place to account for any variance between Board reimbursement and BEP actual expenses.
Includes currency transportation, personnel, and other support costs.
Includes personnel, travel, and training costs applicable to the budget categories that they support.

166 110th Annual Report | 2023

93.6 percent of the operating budget. Board expenses for currency issuance, banknote development, and currency education comprise the remaining 6.4 percent of the operating budget.
Table D.14 provides an overview of the multicycle project budget that funds the BEP’s capital
investments.

Table D.14. Multicycle projects in the currency budget, 2023–24
Millions of dollars, except as noted

Item

Lifetime
project
budget

2022 and
prior actual

2023 budget

2023 actual

2024 budget

253.9

28.9

18.8

10.2

282.8

64.7

62.3

56.2

39.2

1,784.1

BEP project funding
Fort Worth facility expansion1
Washington, D.C. replacement facility2
Note production equipment3

142.0

43.8

48.9

215.3

1,265.0

Total

460.6

135.0

124.0

264.7

3,331.9

1
2
3

In August of 2021, the Board approved a lifetime project budget of $282.8 million.
In December of 2022, the Board approved $134.1 million. In October of 2023, the Board approved an additional $1,650.0 million.
In August of 2023, under delegated authority, the director of the Board’s Division of Reserve Bank Operations and Payment Systems
approved a reimbursable limit of $746.8 million. In December of 2023, the Board conditionally approved the remainder of the project.

BEP Single-Cycle Operating Costs
The proposed 2024 budget to fund the BEP printing and support costs is $1,033.7 million, which
is $175.4 million, or 20.4 percent, higher than 2023 actual expenses.
The budget for fixed printing costs is $665.5 million, which is $78.5 million, or 13.4 percent,
higher than 2023 actual expenses. Fixed costs are growing to support cybersecurity efforts and
information technology upgrades, and to fund increased staffing levels for manufacturing support.
The increase in fixed costs is partially offset by reduced spending in research and development
projects in 2024 because a number of projects have been closed.
The budget for variable printing costs is $361.9 million, which is $96.4 million, or 36.3 percent
higher than 2023 actual expenses. The increase is primarily a result of higher expected note deliveries in 2024 than in 2023 and increased raw material costs.

BEP Multicycle Project Operating Costs
There are three multicycle projects included in the 2024 budget; the BEP’s Fort Worth facility
expansion (WCF); the BEP’s Washington, D.C. replacement facility (DCRF); and modernization of
BEP note production equipment. The combined lifetime project budget for WCF, DCRF, and note
production equipment is $3,331.9 million.

Federal Reserve System Budgets 167

As of October 2023, there is a total of
$2,853.9 million in approved multicycle

Figure D.4. Federal Reserve costs for currency,
2014–2024

project funding, which includes $282.8 million
for the expanded WCF facility, $1,784.1 mil-

Millions of dollars

1500

lion for the new DCRF facility, and $787.0 million for a generational upgrade of note production equipment for both BEP facilities. The

1200
900

Board designated an additional $478.0 million
for note production equipment as conditional
approval, requiring additional review and

600
300

approval by the director of RBOPS when
funding is required. The lifetime project budget

0
2014

2016

2018

2020

2022

2024

of $1,265.0 for note production equipment
funds the replacement of nearly all the production equipment at the BEP through 2033.17

Note: In the previous report, values for 2022 and
2023 represented single-cycle operating costs only. All
years now represent the sum of single-cycle operating
costs and multicycle projects. For 2024, budgeted.

The multicycle project budget includes 2024
components for each of the three budgeted
projects; $10.2 million for WCF project close-out funds following the completion of the project in
2023, $39.2 million to complete the DCRF design and prepare for the awarding of the construction contract, and $215.3 million for note production equipment to support the BEP and Board’s
joint commitment in replacing aging equipment.

Board Single-Cycle Operating Costs
The Board costs budget is $70.2 million, which is $4.9 million, or 7.6 percent, higher than 2023
actual costs. The year-over-year change is primarily driven by increases to support the multiyear
strategic initiatives.
The currency issuance budget increases are primarily attributable to increased transportation
costs for additional note deliveries from the BEP, updated contract pricing, and increased shipments to support Reserve Bank cash offices during renovations to support deployment of NextGen
machines.
The banknote development increases are primarily attributable to security feature testing, the
banknote usability program to support design and communication initiatives for the next family of
notes, improvements to the effectiveness and efficiency of the banknote design process, and the

BEP staff estimates that the equipment will have a life expectancy of 15 to 20 years and will require mid-lifecycle
upgrades 7 to 10 years after it has been placed in service.

168 110th Annual Report | 2023

establishment of a program team to oversee the major cross-program initiatives and identify risks
with executing those projects.
The currency education program will focus on efforts to protect and maintain confidence in U.S.
currency worldwide through public outreach, expansion of domestic and international stakeholder
education, and brand strategy to prepare for the release of the next family of notes.
The 2024 currency budget includes two additional positions to support the strategic planning processes, manage increasing scope and complexity in procurements, and manage the growing
responsibilities of the USCP. The currency issuance, banknote development, and currency education budget categories also include personnel, travel, training, and support and overhead costs.18

The currency budget includes support and overhead costs for enterprise IT, facilities, law enforcement, human
resources, and other services.

169

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 2023. Policy actions were implemented through (1) rules and regulations, (2) policy statements and other actions, and
(3) discount rates for depository institutions. Board members’ votes on the policy actions are provided after each summary.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
Regulations Q (Capital Adequacy of Bank Holding Companies, Savings and Loan
Holding Companies, and State Member Banks), LL (Savings and Loan Holding
Companies), and YY (Enhanced Prudential Standards)
Effective January 1, 2024. On September 13, 2023, the Board approved a final rule (Docket
No. R-1673) to adopt risk-based capital requirements for depository institution holding companies
that are significantly engaged in insurance activities.2 This risk-based capital framework, termed
the Building Block Approach, adjusts and aggregates existing legal-entity capital requirements to
determine enterprisewide capital requirements. The final rule also contains a risk-based capital
requirement excluding insurance activities, in compliance with section 171 of the Dodd-Frank Wall
Street Reform and Consumer Protection Act. The capital requirements meet statutory mandates
and will help to prevent the economic and consumer impacts resulting from the failure of organizations engaged in banking and insurance.
Voting for this action: Chair Powell, Vice Chair Jefferson, Vice Chair for Supervision Barr, and
Governors Bowman, Waller, and Cook.
1

Vice Chair Brainard resigned effective February 18, 2023. Governor Jefferson was sworn in as Vice Chair, and Governor
Kugler was sworn in as a member of the Board, on September 13, 2023.
See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2023-11-27/pdf/2023-23911.pdf.

170 110th Annual Report | 2023

Regulation BB (Community Reinvestment)
Effective April 1, 2024 (with certain provisions not applicable until 2026 or 2027).3 On
October 24, 2023, the Board approved a final rule (Docket No. R-1769), issued jointly with the
Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency
(OCC) (together with the Board, the agencies), to strengthen and modernize the regulations implementing the Community Reinvestment Act (CRA). The CRA requires the agencies to assess a
bank’s record of meeting the credit needs of its entire community, including low- and moderateincome neighborhoods, consistent with the bank’s safe and sound operation. Among other key features, the final rule (1) establishes a tiered CRA evaluation framework that differentiates requirements by bank asset size and business model, (2) adopts a new metrics-based approach to
evaluating bank retail lending and community development financing using benchmarks based on
peer and demographic data, (3) modernizes the geographic framework to consider a bank’s activities outside of its traditional branch-based assessment areas, and (4) clarifies the activities that
qualify for community development consideration. (Note: On March 20, 2024, the Board approved
a combined interim final and final rule (Docket No. R-1830), issued jointly with the FDIC and OCC,
to extend the applicability date of certain provisions of the October 2023 final rule and make certain technical amendments to the October 2023 final rule and related regulations.4)
Voting for this action: Chair Powell, Vice Chair Jefferson, Vice Chair for Supervision Barr, and
Governors Waller, Cook, and Kugler. Voting against this action: Governor Bowman.

Rules of Practice and Procedure
Effective April 1, 2024. On November 9, 2023, the Board approved a final rule (Docket
No. R-1766), issued jointly with the FDIC, the OCC, and the National Credit Union Administration
(NCUA), to adopt changes to the Uniform Rules of Practice and Procedure to recognize the use of
electronic communications in all aspects of administrative hearings and to otherwise increase the
efficiency and fairness of administrative adjudications.5 In addition, the Board made updates to
rules applicable only to its administrative proceedings.
Voting for this action: Chair Powell, Vice Chair Jefferson, Vice Chair for Supervision Barr, and
Governors Bowman, Waller, Cook, and Kugler.

4
5

See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2024-02-01/pdf/2023-25797.pdf, which also
provides information on the applicability dates for various provisions.
See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2024-03-29/pdf/2024-06497.pdf.
See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2023-12-28/pdf/2023-25646.pdf.

Record of Policy Actions of the Board of Governors 171

Policy Statements and Other Actions
Allowances for Credit Losses
On April 13, 2023, the Board approved a final interagency policy statement (Docket No. OP-1680)
(statement) on allowances for credit losses.6 The revised statement, published jointly with the
FDIC, the OCC, and the NCUA, removes references to Troubled Debt Restructurings (TDRs). The
revised statement was developed after changes were made to U.S. generally accepted accounting
principles that eliminated TDRs upon adoption of the Current Expected Credit Losses
methodology.
Voting for this action: Chair Powell, Vice Chair for Supervision Barr, and Governors Bowman,
Waller, Cook, and Jefferson.

Commercial Real Estate Loan Accommodations and Workouts
On June 23, 2023, the Board approved a final policy statement (Docket No. OP-1779), published
jointly with the OCC, the FDIC, and the NCUA, to reinforce and build on existing guidance calling for
financial institutions to work prudently and constructively with creditworthy borrowers during times
of financial stress, to update that guidance’s provisions on commercial real estate loan workouts,
and to add a section on short-term loan accommodations to that guidance.7
Voting for this action: Chair Powell, Vice Chair for Supervision Barr, and Governors Bowman,
Waller, Cook, and Jefferson.

Policy Statement on Section 9(13) of the Federal Reserve Act
On January 27, 2023, the Board approved a policy statement (Docket No. R-1800) interpreting
section 9(13) of the Federal Reserve Act.8 The Board generally believes that the same bank
activity, presenting the same risks, should be subject to the same regulatory framework, regardless of which agency supervises the bank. The policy statement sets out a presumption that the
Board will generally exercise its discretion under section 9(13) to limit the activities of state
member banks to those permissible for national banks—subject to any terms, conditions, and
limitations on the activity—unless the activity is otherwise authorized by federal statute or the
FDIC. The policy statement makes clear that all Board-supervised banks will be subject to the
same limitations on activities, including novel banking activities, such as crypto-asset-related
activities. In addition, the policy statement reiterates that banks must ensure that the activities
they engage in are allowed under the law and must conduct their business in a safe and sound
manner. For instance, a bank should have in place risk-management processes, internal controls,
6
7
8

See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2023-04-27/pdf/2023-08876.pdf.
See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2023-07-06/pdf/2023-14247.pdf.
See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2023-02-07/pdf/2023-02192.pdf.

172 110th Annual Report | 2023

and information systems that are appropriate and adequate for the nature, scope, and risks of its
activities.
Voting for this action: Chair Powell, Vice Chair Brainard, Vice Chair for Supervision Barr, and
Governors Bowman, Waller, Cook, and Jefferson.

Principles for Climate-Related Financial Risk Management
On October 22, 2023, the Board approved final interagency guidance (Docket No. OP-1793) on
principles for climate-related financial risk management for large financial institutions.9 The principles, issued jointly with the FDIC and the OCC, provide a high-level framework for the safe and
sound management of exposures to climate-related financial risks. The principles, which address
physical and transition risks associated with climate change, are intended for the largest financial
institutions, those with more than $100 billion in total consolidated assets.
Voting for this action: Chair Powell, Vice Chair Jefferson, Vice Chair for Supervision Barr, and
Governors Cook and Kugler. Voting against this action: Governors Bowman and Waller.

Systemic Risk Exception and Bank Term Funding Program
On March 12, 2023, the Board approved two actions against the backdrop of substantial stress in
the U.S. banking system following the failures of Silicon Valley Bank (SVB) and Signature Bank
(Signature): (1) written recommendations to the Secretary of the Treasury to invoke the systemic
risk exception to the least-cost-resolution requirements in the Federal Deposit Insurance Act
(FDI Act) and (2) authorization of the establishment of the Bank Term Funding Program (BTFP), a
new emergency lending facility, pursuant to section 13(3) of the Federal Reserve Act (FRA).10
Systemic Risk Exception: The FDIC was appointed receiver of SVB on March 10, 2023, and of
Signature on March 12, 2023, following large and rapid deposit runs at each bank. Under the
FDI Act, the FDIC is generally required to resolve failed depository institutions in a manner that is
least costly to the Deposit Insurance Fund. Given the potential for serious adverse effects on economic conditions and financial stability, the Board recommended invoking the systemic risk exception to the FDIC’s least-cost-resolution requirements for the SVB and Signature receiverships.
Bank Term Funding Program: Under section 13(3) of the FRA, in unusual and exigent circumstances and with the prior approval of the Secretary of the Treasury, the Board may authorize a
Federal Reserve Bank to extend credit to any participant in a program or facility with broad-based
eligibility. This section 13(3) authority is subject to limitations, including a prohibition on lending to

9
10

See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2023-10-30/pdf/2023-23844.pdf.
See press releases at https://www.federalreserve.gov/newsevents/pressreleases/monetary20230312b.htm and
https://www.federalreserve.gov/newsevents/pressreleases/monetary20230312a.htm.

Record of Policy Actions of the Board of Governors 173

entities that are insolvent and a requirement that the relevant Federal Reserve Bank be secured to
its satisfaction.
To support American businesses and households, the Board authorized the establishment of the
BTFP to make available additional funding to help ensure banks have the ability to meet the needs
of all their depositors. Under the BTFP, U.S. federally regulated depository institutions and
U.S. branches and agencies of foreign banks eligible for primary credit are able to obtain
advances of up to one year by pledging any collateral eligible for purchase by the Federal Reserve
in open market operations, such as U.S. Treasuries, U.S. agency securities, and U.S. agency
mortgage-backed securities, provided that such collateral was owned by the borrower as of
March 12, 2023. Collateral was valued at par, and the interest rate on the advances, which is
fixed for the term of the advance on the day the advance was made, was set to the one-year overnight index swap rate plus 10 basis points. (Note: On January 23, 2024, the Board approved a
modification to the interest rate applicable to new BTFP loans such that the BTFP rate would not
be lower than the interest on reserve balances rate in effect on the day the loan was made. The
Board also announced that the BTFP would cease making new loans on March 11, 2024, as
scheduled.11)
Voting for these actions: Chair Powell, Vice Chair for Supervision Barr, and Governors
Bowman, Waller, Cook, and Jefferson.

Third-Party Risk Management
On June 5, 2023, the Board approved final interagency guidance (Docket No. OP-1752) on thirdparty risk management.12 Issued jointly with the FDIC and the OCC, the guidance will promote consistency in supervisory approaches and replace each agency’s existing general guidance on this
topic. The guidance includes illustrative examples and provides views on sound risk-management
principles for banking organizations to use when developing and implementing risk management
practices for all stages in the life cycle of their third-party relationships. The final guidance states
that sound third-party risk management takes into account the level of risk, complexity, and size of
the banking organization and the nature of the third-party relationship.
Voting for this action: Chair Powell, Vice Chair for Supervision Barr, and Governors Waller,
Cook, and Jefferson. Voting against this action: Governor Bowman.

11
12

See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20240124a.htm.
See Federal Register notice at https://www.govinfo.gov/content/pkg/FR-2023-06-09/pdf/2023-12340.pdf.

174 110th Annual Report | 2023

Interest on Reserves
On February 1, 2023, the Board approved raising the interest rate paid on reserve balances from
4.4 percent to 4.65 percent, effective February 2, 2023.13 This action was taken to support the
FOMC’s decision on February 1, 2023, to raise the target range for the federal funds rate by
25 basis points, to a range of 4½ to 4¾ percent.
Voting for this action: Chair Powell, Vice Chair Brainard, Vice Chair for Supervision Barr, and
Governors Bowman, Waller, Cook, and Jefferson.
On March 22, 2023, the Board approved raising the interest rate paid on reserve balances from
4.65 percent to 4.9 percent, effective March 23, 2023.14 This action was taken to support the
FOMC’s decision on March 22, 2023, to raise the target range for the federal funds rate by
25 basis points, to a range of 4¾ to 5 percent.
Voting for this action: Chair Powell, Vice Chair for Supervision Barr, and Governors Bowman,
Waller, Cook, and Jefferson.
On May 3, 2023, the Board approved raising the interest rate paid on reserve balances from
4.9 percent to 5.15 percent, effective May 4, 2023.15 This action was taken to support the
FOMC’s decision on May 3, 2023, to raise the target range for the federal funds rate by 25 basis
points, to a range of 5 to 5¼ percent.
Voting for this action: Chair Powell, Vice Chair for Supervision Barr, and Governors Bowman,
Waller, Cook, and Jefferson.
On June 14, 2023, the Board approved maintaining the interest rate paid on reserve balances at
5.15 percent, effective June 15, 2023.16 This action was taken to support the FOMC’s decision on
June 14, 2023, to maintain the target range for the federal funds rate at 5 to 5¼ percent.
Voting for this action: Chair Powell, Vice Chair for Supervision Barr, and Governors Bowman,
Waller, Cook, and Jefferson.
On July 26, 2023, the Board approved raising the interest rate paid on reserve balances from
5.15 percent to 5.4 percent, effective July 27, 2023.17 This action was taken to support the
FOMC’s decision on July 26, 2023, to raise the target range for the federal funds rate by 25 basis
points, to a range of 5¼ to 5½ percent.
13
14
15
16
17

See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20230201a1.htm.
See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20230322a1.htm.
See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20230503a1.htm.
See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20230614a1.htm.
See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20230726a1.htm.

Record of Policy Actions of the Board of Governors 175

Voting for this action: Chair Powell, Vice Chair for Supervision Barr, and Governors Bowman,
Waller, Cook, and Jefferson.
On September 20, 2023, the Board approved maintaining the interest rate paid on reserve balances at 5.4 percent, effective September 21, 2023.18 This action was taken to support the
FOMC’s decision on September 20, 2023, to maintain the target range for the federal funds rate
at 5¼ to 5½ percent.
Voting for this action: Chair Powell, Vice Chair Jefferson, Vice Chair for Supervision Barr, and
Governors Bowman, Waller, Cook, and Kugler.
On November 1, 2023, the Board approved maintaining the interest rate paid on reserve balances
at 5.4 percent, effective November 2, 2023.19 This action was taken to support the FOMC’s
decision on November 1, 2023, to maintain the target range for the federal funds rate at 5¼ to
5½ percent.
Voting for this action: Chair Powell, Vice Chair Jefferson, Vice Chair for Supervision Barr, and
Governors Bowman, Waller, Cook, and Kugler.
On December 13, 2023, the Board approved maintaining the interest rate paid on reserve balances at 5.4 percent, effective December 14, 2023.20 This action was taken to support the
FOMC’s decision on December 13, 2023, to maintain the target range for the federal funds rate at
5¼ to 5½ percent.
Voting for this action: Chair Powell, Vice Chair Jefferson, Vice Chair for Supervision Barr, and
Governors Bowman, Waller, Cook, and Kugler.

Discount Rates for Depository Institutions in 2023
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.21 For the levels of Federal
Reserve Bank interest rates on loans to depository institutions at year-end, see table E.1.22

18
19
20
21

See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20230920a1.htm.
See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20231101a1.htm.
See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20231213a1.htm.
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.

176 110th Annual Report | 2023

Table E.1. Federal Reserve Bank interest rates on loans to depository institutions, December 31, 2023
Percent

Reserve Bank

Primary credit

Secondary credit

Seasonal credit

5.50

6.00

5.35

All Reserve 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 2023, the Board approved four increases in the primary
credit rate, bringing the rate from 4½ percent to 5½ percent.
Following changes to the primary credit program announced by the Board on March 15, 2020, in
2023, depository institutions could borrow primary credit for periods as long as 90 days, prepayable and renewable by the borrower on a daily basis.23
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 2023, the spread was set at 50 basis points. At year-end, the secondary credit
rate was 6 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
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 5.35 percent.

Votes on Changes to Discount Rates for Depository Institutions
During 2023, there were four 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. Each FOMC meeting associated with a change in the primary credit rate is listed
below with the details of the Board’s actions to approve those changes. Reserve Bank requests to
establish the primary credit rate may be submitted on varying dates, up to and including the
effective date.
FOMC meeting ending on February 1, 2023. At the meeting, the Board approved actions taken by
the boards of directors of the Federal Reserve Banks of Boston, New York, Philadelphia, Rich-

See press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20200315b.htm.

Record of Policy Actions of the Board of Governors 177

mond, Atlanta, Chicago, Kansas City, Dallas, and San Francisco to increase the primary credit rate
from 4½ percent to 4¾ percent, effective February 2, 2023. After the meeting and before the
close of business on the effective date, the Board approved identical actions taken by the boards
of directors of the Federal Reserve Banks of Cleveland, St. Louis, and Minneapolis, effective
February 2, 2023.
Voting for this action: Chair Powell, Vice Chair Brainard, Vice Chair for Supervision Barr, and
Governors Bowman, Waller, Cook, and Jefferson.
FOMC meeting ending on March 22, 2023. At the meeting, the Board approved actions taken by
the boards of directors of the Federal Reserve Banks of Boston, New York, Philadelphia,
Richmond, Atlanta, Kansas City, Dallas, and San Francisco to increase the primary credit rate from
4¾ percent to 5 percent, effective March 23, 2023. After the meeting and before the close of
business on the effective date, the Board approved identical actions taken by the boards of directors of the Federal Reserve Banks of Cleveland, Chicago, St. Louis, and Minneapolis, effective
March 23, 2023.
Voting for this action: Chair Powell, Vice Chair for Supervision Barr, and Governors Bowman,
Waller, Cook, and Jefferson.
FOMC meeting ending on May 3, 2023. At the meeting, 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, Dallas, and San Francisco to increase the
primary credit rate from 5 percent to 5¼ percent, effective May 4, 2023. After the meeting and
before the close of business on the effective date, the Board approved an identical action taken by
the board of directors of the Federal Reserve Bank of New York, effective May 4, 2023.
Voting for this action: Chair Powell, Vice Chair for Supervision Barr, and Governors Bowman,
Waller, Cook, and Jefferson.
FOMC meeting ending on July 26, 2023. At the meeting, the Board approved actions taken by the
boards of directors of the Federal Reserve Banks of Boston, Philadelphia, Cleveland, Richmond,
Chicago, St. Louis, Minneapolis, Kansas City, Dallas, and San Francisco to increase the primary
credit rate from 5¼ percent to 5½ percent, effective July 27, 2023. After the meeting and before
the close of business on the effective date, the Board approved identical actions taken by the
boards of directors of the Federal Reserve Banks of New York and Atlanta, effective July 27, 2023.
Voting for this action: Chair Powell, Vice Chair for Supervision Barr, and Governors Bowman,
Waller, Cook, and Jefferson.

178 110th Annual Report | 2023

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 Modernization 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 GPRA and, like
other federal agencies, publishes a multiyear strategic plan as well as an annual performance plan
and an annual performance report. These reports are publicly available among the Board’s
publications.24

Four-year Strategic Plan, Annual Performance Plan, and Annual Performance
Report
On December 27, 2019, the Board published the Strategic Plan 2020–23, which outlined 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. 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-critical work, while maintaining ongoing operations.
The Annual Performance Report summarizes the Board’s accomplishments throughout the performance year toward achieving the projects and initiatives identified in that year’s Annual Performance Plan. The Annual Performance Report provides transparency into the organization’s highpriority activities.
Ultimately, the organization’s planning and performance reporting processes enable the Board to
identify, prioritize, and progress those activities most critical to advancing the organization’s work
and communicate this to the public.

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.

179

Litigation

The Board of Governors was a party in 7 lawsuits or appeals filed in 2023 and was a party in
9 other cases pending from previous years, for a total of 16 cases. In 2022, the Board was a
party in a total of 16 cases. As of December 31, 2023, 11 cases were pending.

Pending
Banco San Juan Internacional, Inc. v. Board of Governors and Federal Reserve Bank of New York,
No. 23-cv-6414 (S.D.N.Y., filed July 25, 2023), is an Administrative Procedure Act and constitutional law challenge regarding the termination of a Reserve Bank master account.
Banco San Juan Internacional, Inc. v. Board of Governors and Federal Reserve Bank of New York,
No. 23-7558 (2d Circuit, filed October 30, 2023), is an appeal of an order denying a preliminary
injunction in an Administrative Procedure Act and constitutional law challenge regarding the termination of a Reserve Bank master account.
Board of Governors v. Smith, No. 23-cv-2747 (D. District of Columbia, filed September 19, 2023),
is a breach of contract and debt collection action.
Corner Post v. Board of Governors, No. 22-1008 (U.S. Supreme Court, certiorari granted
September 29, 2023), is a review of an order affirming dismissal of an Administrative Procedure
Act challenge to the debit interchange fee provisions of the Board’s Regulation II.
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.
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.
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.
Judicial Watch v. Board of Governors et al., No. 23-cv-1174 (D. District of Columbia, filed
April 27, 2023), is an action under the Freedom of Information Act.

180 110th Annual Report | 2023

Leopold and Bloomberg L.P. v. Board of Governors, No. 23-cv-2004 (D. District of Columbia, filed
July 12, 2023), is an action under the Freedom of Information Act.
Linney’s Pizza, LLC v. Board of Governors, No. 23-5993 (6th Circuit, filed November 8, 2023), is an
appeal of an order dismissing 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.

Resolved
Fruge v. Board of Governors, No. 22-5307 (D.C. Circuit, filed November 22, 2022), was an appeal
of an order granting summary judgment for the Board in an action claiming retaliation for protected
disclosures. On March 31, 2023, the appeal was dismissed pursuant to a stipulation of
the parties.
Judicial Watch v. Board of Governors, No. 22-cv-37 (D. District of Columbia, filed January 18, 2022),
was an action under the Freedom of Information Act. On March 15, 2023, the case was dismissed
pursuant to a stipulation of the parties.
Judicial Watch v. Board of Governors, No. 22-cv-38 (D. District of Columbia, filed January 18, 2022),
was an action under the Freedom of Information Act. On January 20, 2023, the case was dismissed pursuant to a stipulation of the parties.
Linney’s Pizza, LLC v. Board of Governors, No. 22-cv-71 (E.D. Kentucky, filed December 9, 2022),
was an Administrative Procedure Act challenge to the debit interchange fee provisions of the
Board’s Regulation II. On September 15, 2023, the district court granted the Board’s motion
to dismiss.
Smith and Kiolbasa v. Board of Governors, No. 21-9538 (10th Circuit, filed April 21, 2021), was a
petition for review of Board prohibition orders under the Federal Deposit Insurance Act. On
July 11, 2023, the court of appeals affirmed the Board’s orders.

181

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, 2023
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

150

Gross sales

63,425

66,587

53,961

62,898

72,399

46,198

50,437

76,958

20,061

48,275

78,171

17,140

656,510

63,425

66,587

53,961

62,898

72,399

46,198

50,437

76,958

20,061

48,275

78,171

17,140

656,510

4,419

4,055

11,722

9,973

20,599

7,557

14,296

72,621

Exchanges
For new bills
Redemptions
Others up to 1 year
Gross purchases
Gross sales
Exchanges

−70,233

−5,754

−69,548

−54,222

−4,193

−203,950

55,581

60,000

55,945

59,995

60,000

48,278

50,026

60,000

39,401

52,443

60,000

45,704

647,373

Gross purchases

184

Gross sales

Exchanges

34,944

2,557

37,498

25,167

2,169

102,335

Gross purchases

Gross sales

Exchanges

21,630

2,046

22,341

17,957

1,383

65,357

Gross purchases

174

Gross sales

Exchanges

13,659

1,151

9,709

11,098

641

36,258

Redemptions
Over 1 to 5 years

Over 5 to 10 years

More than 10 years

All maturities
Gross purchases
Gross sales
Redemptions
Net change in U.S.
Treasury securities

100

625

275

60,000

59,995

60,000

59,999

60,000

719,994

−60,075

−59,950

−60,000

−59,945

−59,900

−59,975

−59,924

−59,925

−60,025

−59,950

−60,050

−59,925

−719,644

(continued)

182 110th Annual Report | 2023

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

−16,667

−14,695

−15,560

−18,700

−17,544

−20,098

−20,579

−18,689

−19,144

−16,819

−15,872

−15,262

−209,629

−76,742

−74,645

−75,560

−78,645

−77,444

−80,073

−80,503

−78,614

−79,169

−76,769

−75,922

−75,187

−929,273

25,875

23,000

114

n/a

2,492,766 2,439,643 2,549,414 2,631,217 2,608,860 2,391,853 2,118,684 2,059,998 1,799,527 1,491,272 1,294,990 1,149,148

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

299,093

325,146

340,977

n/a

2,130,904 2,079,452 2,185,684 2,263,382 2,233,557 2,054,779 1,795,935 1,765,232 1,496,175 1,192,179

361,862

360,191

363,730

367,835

375,303

337,074

322,749

294,766

303,352

969,844

808,171

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 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. Beginning in June, the average balances were calculated using weekends and holidays after the Federal
Reserve Banks adopted a seven-day accounting cycle. See https://www.frbservices.org/resources/financial-services/accounting/faq/accountmanagement-information-seven-day-accounting.
n/a Not applicable.

Statistical Tables 183

Table G.2. Federal Reserve Bank holdings of U.S. Treasury and federal agency securities,
December 31, 2021–23
Millions of dollars

Description
U.S. Treasury securities

December 31

Change

2023

2022

2021

2022–23

2021–22

4,785,138

5,499,354

5,652,542

−714,216

−153,188

131,254

177,692

207,113

−46,438

−29,421

85,715

111,833

118,931

−26,118

−7,098

676,304

892,496

807,747

−216,192

84,749

1,614,977

1,915,468

2,146,103

−300,491

−230,635

771,726

937,231

1,019,239

−165,505

−82,008

1,505,162

1,464,634

1,353,409

40,528

111,225

Held outright2
By remaining maturity
Bills
1–90 days
91 days to 1 year
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

216,969

289,525

326,044

−72,556

−36,519

Notes

2,863,795

3,521,904

3,748,992

−658,109

−227,088

Bonds

1,704,374

1,687,925

1,577,506

16,449

110,419

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

213

−213

By type
Discount notes
Coupons

2,347

0
(continued)

184 110th Annual Report | 2023

Table G.2—continued
Description

December 31
2023

2022

Change
2021

2022–23

2021–22

By issuer
Federal Home Loan Mortgage Corporation
Federal National Mortgage Association
Federal Home Loan Banks

529

1,818

2,431,773

2,641,403

2,615,546

−209,630

25,857

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

−15

4,895

4,020

1,803

875

2,217

32,350

49,979

60,328

−17,629

−10,349

2,394,505

2,587,366

2,553,389

−192,861

33,977

927,035

1,001,274

977,512

−74,239

23,762

1,004,336

1,091,106

1,075,531

−86,770

15,575

500,402

549,023

562,503

−48,621

−13,480

Repo operations

FIMA Repo Facility

1,390,671

2,889,555

2,183,041

−1,498,884

706,514

372,188

335,839

278,459

36,349

57,380

1,018,483

2,553,716

1,904,582

−1,535,233

649,134

More than 10 years
By issuer
Federal Home Loan Mortgage Corporation
Federal National Mortgage Association
Government National Mortgage Association
Temporary transactions5
Repurchase agreements6

Reverse repurchase agreements

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 185

Table G.3. Reserve requirements of depository
institutions, December 31, 2023
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.

186 110th Annual Report | 2023

Table G.4. Banking offices and banks affiliated with bank holding companies in the United States,
December 31, 2022 and 2023
Commercial banks1
Type of office

Total

Member
National

State

Nonmember

Savings
banks

Total

4,337

4,119

1,384

710

674

2,735

218

Banks
Number, Dec. 31, 2022
Changes during 2023
New banks

Banks converted into branches

−96

−93

−25

−11

−14

−68

−3

Ceased banking operations2

−24

−22

−7

−3

−4

−15

−2

−18

−2

Other3
Net change
Number, Dec. 31, 2023

−109

−102

−9

−14

−93

−7

4,228

4,017

1,375

696

679

2,642

211

71,888

69,847

47,229

35,548

11,681

22,618

2,041

Branches and additional offices
Number, Dec. 31, 2022
Changes during 2023
New branches
Banks converted to branches
Discontinued2
Other3
Net change
Number, Dec. 31, 2023

944

928

607

472

135

321

−2,158

−2,140

−1,647

−1,453

−194

−493

−18

942

549

393

−920

−22

−1,118

−1,095

−63

−419

356

−1,032

−23

70,770

68,752

47,166

35,129

12,037

21,586

2,018

3,724

3,616

1,266

636

630

2,350

108

Banks affiliated with BHCs
Number, Dec. 31, 2022
Changes during 2023
BHC-affiliated new banks

Banks converted into branches

−86

−85

−24

−11

−13

−61

−1

Ceased banking operations2

−17

−7

−3

−4

−10

−1

−17

−2

Other3
Net change
Number, Dec. 31, 2023

−71

−69

−4

−10

−65

−2

3,653

3,547

1,262

626

636

2,285

106

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 187

Table G.5A. Reserves of depository institutions, Federal Reserve Bank credit, and related items, year-end
1984–2023 and month-end 2023
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)

188 110th Annual Report | 2023

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

2023

7,219,258

153,881

−556

311,982

7,684,565

11,041

5,200

52,616

47,675

−559

344,750

8,416,392

11,041

5,200

51,527

2023, month-end
Jan.

8,024,523

Feb.

7,948,411

46,710

−561

327,687

8,322,247

11,041

5,200

51,583

Mar.

7,876,667

45,000

354,631

−371

332,565

8,608,492

11,041

5,200

51,653

Apr.

7,844,203

371,238

−588

338,626

8,553,479

11,041

5,200

51,709

May

7,724,820

321,605

−675

321,852

8,367,602

11,041

5,200

51,765

June

7,647,143

1,000

307,628

−329

326,903

8,282,345

11,041

5,200

51,835

July

7,567,832

1,500

290,659

−537

331,011

8,190,465

11,041

5,200

51,787

Aug.

7,490,768

276,763

−735

315,578

8,082,374

11,041

5,200

52,378

Sept.

7,434,987

225,322

−362

320,980

7,980,927

11,041

5,200

52,434

Oct.

7,337,816

191,452

−603

321,478

7,850,143

11,041

5,200

52,490

Nov.

7,263,096

143,585

−824

305,098

7,710,955

11,041

5,200

52,560

Dec.

7,219,258

153,881

−556

311,982

7,684,565

11,041

5,200

52,616

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. Starting in 2023, includes the Bank Term
Funding Program. From 2020 to 2023, included the following liquidity programs and 13(3) facilities: Paycheck Protection Program Liquidity Facility;
MS Facilities LLC; Municipal Facility LLC; and Term Asset-Backed 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 to 2019, included Maiden Lane LLC. For disaggregated loans and other credit extensions from 1984 to 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 189

Table G.5A. Reserves of depository institutions, Federal Reserve Bank credit, and related items, year-end
1984–2023 and month-end 2023—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)

190 110th Annual Report | 2023

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

2023

2,347,852

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

1,390,671

396

768,590

n/a

9,692

177,530

n/a

−76,067

3,134,759

2023, month-end
Jan.

2,296,338

2,440,840

107

567,908

n/a

9,436

195,545

n/a

35,965

2,938,022

Feb.

2,302,982

2,566,111

103

415,005

n/a

9,438

177,060

n/a

25,670

2,893,702

Mar.

2,322,773

2,742,659

167

177,692

n/a

9,681

218,688

n/a

20,986

3,183,739

Apr.

2,323,716

2,717,322

185

316,381

n/a

9,688

206,324

n/a

13,643

3,034,170

May

2,344,176

2,615,677

247

48,512

n/a

9,755

210,209

n/a

1,508

3,205,526

June

2,344,947

2,368,912

242

402,394

n/a

9,717

191,517

n/a

−14,190

3,046,883

July

2,332,493

2,148,377

263

501,828

n/a

9,686

190,071

n/a

−22,380

3,098,155

Aug.

2,332,430

1,960,219

327

541,843

n/a

9,723

172,780

n/a

−31,194

3,164,864

Sept.

2,323,012

1,863,428

339

656,889

n/a

9,689

169,602

n/a

−40,004

3,066,647

Oct.

2,324,704

1,455,504

372

832,412

n/a

9,685

167,115

n/a

−47,252

3,176,334

Nov.

2,331,964

1,223,378

395

758,851

n/a

9,689

162,227

n/a

−64,297

3,357,547

Dec.

2,347,852

1,390,671

396

768,590

n/a

9,692

177,530

n/a

−76,067

3,134,759

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
From 2020 to 2023, includes equity investments for outstanding LLCs. Negative amounts include the cumulative deferred asset position, which is
incurred during a period when earnings are not sufficient to provide for the cost of operations, payment of dividends, and maintaining surplus. The
deferred asset is the amount of net earnings that the Federal Reserve Banks need to realize before remittances to the U.S. Treasury resume. In
2010, included funds from American International Group, Inc. asset dispositions, held as agent.
n/a Not applicable.
7

Statistical Tables 191

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)

192 110th Annual Report | 2023

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 193

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)

194 110th Annual Report | 2023

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 195

Table G.6. Principal assets and liabilities of insured commercial banks, by class of bank,
June 30, 2023 and 2022
Millions of dollars, except as noted

Item

Member banks
Total

National

State

Nonmember banks

16,002,218

12,680,689

10,334,322

2,346,367

3,321,530

11,093,581

8,506,038

6,873,360

1,632,678

2,587,544

11,091,881

8,505,174

6,872,801

1,632,374

2,586,706

Total

2023
Loans and investments
Loans, gross
Net
Investments

4,908,637

4,174,651

3,460,962

713,689

733,986

U.S. government securities

1,186,453

1,072,804

937,116

135,688

113,649

Other

3,722,184

3,101,847

2,523,846

578,001

620,337

2,017,543

1,736,694

1,292,155

444,539

280,849

16,099,572

13,030,830

10,592,723

2,438,106

3,068,742

268,034

243,695

198,360

45,335

24,339

Cash assets, total
Deposits, total
Interbank
Other transactions
Other nontransactions
Equity capital
Number of banks

5,708,700

4,668,225

3,599,737

1,068,488

1,040,475

10,122,837

8,118,910

6,794,626

1,324,284

2,003,927

2,143,833

1,747,262

1,428,464

318,798

396,571

4,065

1,373

712

661

2,692

16,022,105

12,596,081

10,128,252

2,467,830

3,426,023

10,498,546

7,915,198

6,332,222

1,582,975

2,583,348

10,497,211

7,914,796

6,332,047

1,582,749

2,582,415

2022
Loans and investments
Loans, gross
Net
Investments

5,523,559

4,680,884

3,796,030

884,854

842,675

U.S. government securities

1,435,477

1,330,716

1,177,257

153,459

104,762

Other

4,088,082

3,350,168

2,618,773

731,395

737,914

2,056,714

1,757,422

1,267,578

489,845

299,292

16,771,232

13,427,270

10,753,153

2,674,117

3,343,962

Cash assets, total
Deposits, total
Interbank
Other transactions
Other nontransactions
Equity capital
Number of banks

365,731

338,195

290,806

47,389

27,535

5,787,739

4,672,612

3,634,157

1,038,455

1,115,127

10,617,763

8,416,463

6,828,190

1,588,273

2,201,300

2,095,299

1,692,271

1,371,603

320,668

403,028

4,171

1,393

732

661

2,778

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 2022 have been revised.

196 110th Annual Report | 2023

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 197

Table G.8A. Statement of condition of the Federal Reserve Banks, by Bank, December 31, 2023 and 2022
Millions of dollars

Total

Item

2023

Boston
2022

New York

2023

2022

2023

Philadelphia

2022

Cleveland

Richmond

2023

2022

2023

2022

2023

2022

Assets
Gold certificates

11,037

361

348

3,357

3,453

315

327

515

526

775

791

Special drawing rights
certificates

5,200

196

1,818

210

237

412

Coin

1,423

1,209

134

108

177

190

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

3,473

5,276

144

120

122

1,069

138

474

138

132,628

11,450

6,162

9,206

2,077

2,259

3,182

2,505

10,916

4,988,327 5,729,247

96,374

114,699

2,785,732 2,937,394

82,214

131,620

153,293

228,785

347,135

399,251

2,481,336 2,697,583

47,939

54,005

1,385,702 1,383,055

40,896

61,973

76,252

107,722

172,675

187,985

2,584

7,608,321 8,446,140

2,557

150,668

168,876

1,325

103

178

180

4,182,190 4,324,920

1,428

125,549

193,688

232,818

339,134

531,378

587,578

Consolidated variable
interest entities: Assets
held, net4

16,098

30,436

15,839

22,910

259

7,526

n/a

Accrued interest
receivable—System Open
Market Account

32,357

34,277

627

687

18,053

17,566

535

788

1,000

1,372

2,263

2,395

Foreign currency
denominated
investments, net5

18,587

18,565

800

6,613

6,465

668

689

1,753

1,815

3,764

3,723

Central bank liquidity
swaps6

1,357

412

483

144

128

275

Bank premises and
equipment, net

2,897

2,700

123

124

471

475

161

169

146

143

431

338

Items in process of
collection

133,318

16,585

2,561

309

85,206

12,545

1,228

5,084

146

20,396

1,434

19,074

28,113

−150,680

53,270

−7,801

−35,361

68,582

−21,458

100,368

28,809

4,895

2,721

196

393

1,640

118

431

276

7,835,559 8,569,354

190,551

222,488

4,148,202 4,429,847

121,110

160,665

310,435

322,081

660,670

626,029

Other assets

Deferred asset—remittances
to the Treasury
Interdistrict
settlement account
All other assets7
Total assets

(continued)

198 110th Annual Report | 2023

Table G.8A—continued
Item

Total
2023

Boston
2022

New York

Philadelphia

Cleveland

Richmond

2023

2022

2023

2022

2023

2022

2023

2022

2023

2022

89,844

86,350

806,499

783,156

75,591

73,670

127,980

125,617

191,807

189,334

Liabilities
Federal Reserve notes
outstanding
Less: Notes held by Federal
Reserve Bank

2,706,634 2,618,832
359,871

10,062

8,474

61,224

74,159

25,098

18,425

17,942

13,161

30,771

22,030

Federal Reserve notes
outstanding, net

409,583

2,297,050 2,258,961

79,782

77,876

745,275

708,997

50,493

55,245

110,038

112,456

161,036

167,304

Securities sold under
agreements to
repurchase1

1,390,671 2,889,555

26,868

57,849

776,620 1,481,480

22,920

66,383

42,736

115,388

96,776

201,363

3,134,759 2,684,814

1,769,847 1,709,016

247,973

Deposits
Depository institutions

73,516

73,249

46,039

37,398

152,842

90,103

393,404

Treasury, general account

768,590

446,685

n/a

768,590

446,685

n/a

Other deposits8

187,222

227,160

70,582

62,967

383

488

4,090,571 3,358,659

73,570

73,260

2,609,019 2,218,668

46,040

37,399

152,880

90,130

393,787

248,461

Total deposits
Other liabilities
Accrued remittances to the
Treasury9
Deferred credit items
Consolidated variable
interest entities: Other
liabilities
All other liabilities10
Total liabilities

624

611

n/a

5,212

4,082

195

169

2,240

1,678

148

136

222

165

616

437

7,784,180 8,511,964

180,467

209,249

4,133,154 4,410,825

119,601

159,163

305,876

318,139

652,215

617,565

(continued)

Statistical Tables 199

Table G.8A—continued
Item

Total
2023

Boston
2022

New York

2023

2022

1,505

1,507

2023

Philadelphia

2022

Cleveland

Richmond

2023

2022

2023

2022

2023

2022

1,270

1,258

3,837

3,302

7,116

7,090

Capital accounts
Capital paid-in
Surplus (including
accumulated other
comprehensive loss)

36,065

35,014

12,469

12,457

6,785

283

292

2,346

2,414

239

244

722

640

1,339

1,374

Total Reserve Bank capital

42,850

41,799

1,788

1,799

14,815

14,871

1,509

1,502

4,559

3,942

8,455

8,464

Consolidated variable
interest entities formed
to administer credit and
liquidity facilities:
Non-controlling interest

8,529

15,591

8,296

11,440

233

4,151

n/a

Total Reserve Bank capital
and consolidated
variable interest entities
non-controlling interest

51,379

57,390

10,084

13,239

15,048

19,022

1,509

1,502

4,559

3,942

8,455

8,464

7,835,559 8,569,354

190,551

222,488

4,148,202 4,429,847

121,110

160,665

310,435

322,081

660,670

626,029

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 (Main Street Lending Program), 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
Includes depository institution overdrafts.
8
Includes deposits of government-sponsored enterprises (GSEs) and international and designated financial market utilities, certain deposit accounts
for services provided by the Reserve banks as fiscal agents of the United States, and foreign official deposit accounts.
9
Represents the estimated weekly remittances to the U.S. Treasury.
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.

200 110th Annual Report | 2023

Table G.8A. Statement of condition of the Federal Reserve Banks, by Bank, December 31, 2023 and
2022—continued
Millions of dollars

Item

Atlanta

Chicago

St. Louis

Minneapolis

Kansas City

Dallas

San Francisco

2023

2022

2023

2022

2023

2022

2023

2022

2023

2022

2023

2022

2023

2022

Assets
Gold certificates

1,633

1,593

680

669

329

311

174

173

299

287

1,008

997

1,591

1,562

Special drawing rights
certificates

654

424

150

153

282

574

Coin

101

252

225

177

158

257

221

Loans and securities
Loans to depository
institutions
Other loans
Securities purchased under
agreements to resell1

313

510

542

277

318

107

709

477

630

1,055

1,307

9,919

8,924

7,867

7,611

3,929

8,418

13,487

44,678

2,871

Treasury securities, net2, 3

337,930 374,845 310,954 391,650

74,622

89,980 33,823

40,623

64,494

89,434 243,216 293,736 458,541 637,230

Federal agency and
government-sponsored
enterprise mortgagebacked securities, net2

168,096 176,493 154,678 184,406

37,119

42,366 16,825

19,127

32,081

42,109 120,983 138,304 228,091 300,036

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

173

169

159

177

516,431 552,017 474,810 576,777 119,923 132,488 58,594

125

132

235

287

63,804 105,074 132,314 378,288 432,808 732,600 941,731

n/a

2,189

2,241

2,015

2,342

485

539

219

243

418

535

1,575

1,756

2,979

3,814

Foreign currency
denominated
investments, net5

557

604

647

704

418

374

118

197

192

392

446

2,660

2,662

Central bank liquidity
swaps6

194

Bank premises and
equipment, net

259

218

228

108

104

115

106

252

246

254

350

295

Items in process of
collection

386

9,789

1,422

215

491

1,711

6,191

761

45,589 −63,151

−4,041

−5,274

−1,276 −11,024 −20,881 −33,248

−5,249

190

Other assets

Deferred asset—remittances
to the Treasury
Interdistrict
settlement account
All other assets
Total assets

−11,406
1,217

166

−5,354 −3,763
300

121

512,130 603,124 425,907 578,801 116,455 128,753 56,125

108

63,391

326

*
0

120

282

98,323 −62,160
1,212

134

96,297 113,060 350,750 431,596 846,931 889,653

(continued)

Statistical Tables 201

Table G.8A—continued
Item

Atlanta
2023

Chicago

2022

2023

St. Louis

Minneapolis

Kansas City

Dallas
2023

San Francisco

2022

2023

2022

2023

2022

2023

2022

2023

2022

395,722 390,723 167,274 159,578

81,908

77,447 44,757

41,316

75,426

71,321 256,949 242,458 392,876 377,861

36,800

8,932

8,102 11,745

8,437

27,494

21,307

356,756 354,627 123,488 122,778

72,976

69,345 33,012

32,879

47,932

50,014 190,089 192,033 326,173 315,406

Liabilities
Federal Reserve notes
outstanding
Less: Notes held by Federal
Reserve Bank
Federal Reserve notes
outstanding, net
Securities sold under
agreements to
repurchase1

38,966

36,096

43,786

66,860

50,425

66,703

62,455

94,210 189,054

86,689 197,529

20,803

45,381

9,429

20,488

17,980

45,106

67,805 148,146 127,834 321,388

12,915 13,171

Deposits
Depository institutions

58,701

57,165

97,642

93,680

21,553

9,526

29,671

17,301

91,466

Treasury, general account

n/a

Other deposits8

138

98 115,614 163,004

135

139

353

58,839

57,263 213,256 256,684

21,571

12,924 13,306

9,661

29,759

17,343

91,605

Total deposits

89,990 386,906 246,497

90,343 386,937 246,522

Other liabilities
Accrued remittances to the
Treasury9
Deferred credit items

624

611

Consolidated variable
interest entities: Other
liabilities

n/a

All other liabilities10

297

237

370

355

140

118

110

159

144

221

193

501

355

510,726 601,871 423,803 577,346 115,490 127,812 55,857

63,127

Total liabilities

95,830 112,616 349,720 430,715 841,445 883,671

(continued)

202 110th Annual Report | 2023

Table G.8A—continued
Item

Atlanta

Chicago

St. Louis

Minneapolis

Kansas City

Dallas

San Francisco

2023

2022

2023

2022

2023

2022

2023

2022

2023

2022

2023

2022

2023

2022

1,182

1,050

1,771

1,219

812

788

226

221

393

372

867

738

4,617

5,011

Capital accounts
Capital paid-in
Surplus (including
accumulated other
comprehensive loss)

222

203

333

236

153

163

143

869

971

Total Reserve Bank capital

1,404

1,253

2,104

1,455

965

941

268

264

467

444

1,030

881

5,486

5,982

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

1,404

1,253

2,104

1,455

965

941

268

264

467

444

1,030

881

5,486

5,982

512,130 603,124 425,907 578,801 116,455 128,753 56,125

63,391

Total liabilities and
capital accounts

96,297 113,060 350,750 431,596 846,931 889,653

Statistical Tables 203

Table G.8B. Statement of condition of the Federal Reserve Banks, December 31, 2023 and 2022
Millions of dollars

Item
Federal Reserve notes outstanding
Less: Notes held by Federal Reserve Banks not subject to collateralization
Collateralized Federal Reserve notes

2023

2022

2,706,633

2,618,832

409,583

359,871

2,297,050

2,258,961

11,037

Collateral for Federal Reserve notes
Gold certificates
Special drawing rights certificates

5,200

U.S. Treasury securities1

2,280,813

2,242,724

Total collateral

2,297,050

2,258,961

Face value. Includes compensation to adjust for the effect of inflation on the original face value of inflation-indexed securities.

204 110th Annual Report | 2023

Table G.9. Income and expenses of the Federal Reserve Banks, by Bank, 2023
Thousands of dollars

Item

Total

Boston

New York

Philadelphia

Cleveland

Richmond

Current income
Interest income
Primary, secondary, and seasonal
loans

6,284,216

11,068

1,342,948

9,560

1,307

8,421

Other loans, net

4,153,623

134,876

212,379

70,789

54,917

222,435

Interest income on securities
purchased under agreements
to resell

194,749

3,876

101,339

4,262

7,477

13,568

106,479,023

2,076,831

58,177,562

1,937,362

3,530,751

7,412,542

Federal agency and governmentsponsored enterprise
mortgage-backed securities, net

57,016,504

1,113,450

31,063,182

1,050,068

1,908,572

3,969,396

Government-sponsored enterprise
debt securities, net

131,398

2,565

71,671

2,408

4,381

9,148

Foreign currency denominated
investments, net

246,255

10,600

87,298

8,897

23,366

49,785

Central bank liquidity swaps1

18,846

811

6,668

683

1,794

3,807
11,689,102

Treasury securities, net

Total interest income

174,524,614

3,354,077

91,063,047

3,084,029

5,532,565

Income from priced services

505,312

161,019

Securities lending fees

105,474

2,057

57,655

1,915

3,492

7,343

Other income

709

238

611,495

2,079

218,912

1,931

3,500

7,347

175,136,109

3,356,156

91,281,959

3,085,960

5,536,065

11,696,449

4,275,300

297,254

843,532

166,554

204,878

653,982

Building

318,287

33,447

71,302

14,671

16,846

29,093

Equipment

250,272

9,107

20,535

9,238

8,615

128,307

Total other income
Total current income
Net expenses
Salaries and other benefits

Software costs

493,091

23,871

39,241

3,785

16,066

295,443

Recoveries

−294,917

−38,607

−19,225

−23,098

−7,675

−19,753

Expenses capitalized2

−159,213

−12,535

−31,064

−1,112

−13,668

−6,869

765,204

163,036

420,045

63,909

72,235

−734,988

5,648,024

475,573

1,344,366

233,947

297,297

345,215

547,665

319,471

Other expenses
Total operating expenses before
pension expense and
reimbursements
System pension service costs3
Reimbursable services to
government agencies

−811,774

−3,706

−140,637

−1,984

−99,043

−10,098

Operating expenses

5,383,915

471,867

1,523,200

231,963

198,254

335,117

Interest expense on securities sold
under agreements to repurchase

104,341,345

2,038,428

56,794,461

1,928,995

3,503,141

7,264,184

Interest to depository institutions
and others

176,755,489

2,942,340

104,515,314

1,967,003

6,259,189

22,263,930

286,480,845

5,452,637

162,833,028

4,127,963

9,960,587

29,863,238

−111,344,736

−2,096,481

−71,551,069

−1,042,003

−4,424,522

−18,166,789

Other expenses
Net expenses
Current net income

Additions to (+) and deductions from (−) current net income
Profit on sales of Treasury securities

−31,603

−615

−17,387

−558

−1,024

−2,200

Losses on sales of federal agency
and government-sponsored
enterprise mortgage-backed
securities

−56,131

−1,085

−31,325

−928

−1,729

−3,906

(continued)

Statistical Tables 205

Table G.9—continued
Item
Foreign currency translation (losses)
Other components of net benefit
cost

Total

Boston

New York

Philadelphia

−66,941

−2,878

−24,849

−2,246

Cleveland

Richmond

−5,842

−13,826

171,373

−3,403

130,584

−1,542

−129

3,918

Net additions or deductions

−147,898

−5,391

−66,411

−4,523

−11,815

−26,225

Net additions or deductions to
current net income

−131,200

−13,372

−9,388

−9,797

−20,539

−42,239

Board expenditures4

1,144,000

48,927

403,689

40,869

114,557

230,054

Cost of currency

1,047,430

45,414

215,187

39,748

68,127

96,659

720,500

30,737

251,488

25,725

72,033

144,244

2,911,930

125,078

870,364

106,342

254,717

470,957

Assessments by Board

Consumer Financial Protection
Bureau5
Assessments by the Board of
Governors
Consolidated variable interest entities
Net income from consolidated
variable interest entities

1,124,385

914,437

209,948

Non-controlling interest in
consolidated variable interest
entities (income), net

−1,037,901

−870,160

−167,741

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

−114,301,382

−2,190,654

−72,388,614

−1,158,142

−4,699,778

−18,679,985

Earnings remittances to the Treasury

−116,063,336

−2,251,850

−72,660,766

−1,210,120

−4,937,964

−18,961,771

Net (loss) income after providing for
remittances to the Treasury

1,761,954

61,196

272,152

51,978

238,186

281,786

Other comprehensive income

−275,578

−6,834

168,004

−4,298

−6,402

−26,078

Comprehensive income

1,486,376

54,362

440,156

47,680

231,784

255,708

1,488,823

63,265

508,084

52,565

149,786

290,983

−8,902

−67,929

−4,883

82,001

−35,277

Distribution of comprehensive income
Dividends on capital stock
Transferred to/from surplus and
change in accumulated other
comprehensive income6
Remittances transferred to the
Treasury7

670,450

−116,733,786

−2,251,850

−72,660,766

−1,210,120

−4,937,964

−18,961,771

Earnings remittances to the Treasury,
net

−116,063,336

−2,251,850

−72,660,766

−1,210,120

−4,937,964

−18,961,771

Total distribution of
comprehensive income

−114,574,513

−2,197,487

−72,220,611

−1,162,438

−4,706,177

−18,706,065

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
The total transferred to/from surplus and change in accumulated other comprehensive income for the Federal Reserve Bank of Atlanta excludes
$2 million transfer from surplus due to the Office of Employee Benefits’ (OEB) postretirement net actuarial gain resulting from the integration of
operations into the Bank.
7
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 any amount necessary to maintain surplus, the
Reserve Banks suspend weekly remittances to the Treasury and record a deferred asset.

206 110th Annual Report | 2023

Table G.9. Income and expenses of the Federal Reserve Banks, by Bank, 2023—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

16,018

13,142

7,799

4,904

24,383

17,740

4,826,926

220,205

186,888

230,377

199,107

291,670

412,147

1,917,833

12,817

13,117

3,034

1,371

2,953

9,903

21,032

Treasury securities, net

7,148,199

6,806,792

1,613,813

730,687

1,452,010

5,262,211

10,330,263

Federal agency and governmentsponsored enterprise
mortgage-backed securities, net

3,823,136

3,656,597

865,607

391,867

782,741

2,822,667

5,569,221

Government-sponsored enterprise
debt securities, net

8,815

8,416

1,993

903

1,799

6,500

12,799

Foreign currency denominated
investments, net

7,489

8,702

5,445

1,504

2,602

5,313

35,254

577

671

413

113

199

412

2,698

11,237,256

10,694,325

2,728,481

1,330,456

2,558,357

8,536,893

22,716,026

244,276

100,016

7,082

6,739

1,598

724

1,437

5,211

10,221

Central bank liquidity swaps1
Total interest income
Income from priced services
Securities lending fees
Other income

249

251,376

106,804

1,602

742

1,460

5,272

10,470

11,488,632

10,801,129

2,730,083

1,331,198

2,559,817

8,542,165

22,726,496

315,355

358,134

266,141

195,591

336,584

231,500

405,795

Building

20,241

32,795

16,115

13,236

20,663

21,382

28,496

Equipment

13,755

13,418

5,142

4,564

9,051

11,581

16,959

Software costs

15,399

8,968

8,564

4,804

39,371

11,042

26,537

−11,874

−19,654

−9,350

−13,412

−49,369

−28,664

−54,236

Total other income
Total current income
Net expenses
Salaries and other benefits

Recoveries
Expenses capitalized2

−2,672

−10,245

−12,370

−13,012

−27,450

−5,467

−22,749

Other expenses

195,802

123,667

147,395

52,837

96,108

58,332

106,826

Total operating expenses before
pension expense and
reimbursements

546,006

507,083

421,637

244,608

424,958

299,706

507,628

System pension service costs3

228,194

Reimbursable services to
government agencies

−42,407

−4,517

−209,289

−81,107

−197,954

−18,653

−2,379

Operating expenses

731,793

502,566

212,348

163,501

227,004

281,053

505,249

Interest expense on securities sold
under agreements to repurchase

6,993,793

6,698,463

1,584,922

717,476

1,435,467

5,168,382

10,213,633

Interest to depository institutions
and others

2,965,107

11,629,714

881,010

615,920

1,324,864

4,515,964

16,875,134

10,690,699

18,830,749

2,678,281

1,496,898

2,987,336

9,965,404

27,594,025

797,933

−8,029,620

51,802

−165,700

−427,519

−1,423,239

−4,867,529

Other expenses
Net expenses
Current net income

Additions to (+) and deductions from (−) current net income
Profit on sales of Treasury securities

−2,128

−2,004

−477

−216

−424

−1,555

−3,015

Profit losses on sales of federal
agency and governmentsponsored enterprise
mortgage-backed securities

−3,801

−3,502

−840

−381

−727

−2,738

−5,169

(continued)

Statistical Tables 207

Table G.9—continued
Item

Atlanta

Chicago

St. Louis

Foreign currency translation (losses)

−1,655

−1,906

−1,834

Other components of net benefit
cost

89,551

−13,446

Net additions or deductions

−3,086

−4,659

Net additions or deductions to
current net income

78,881

Minneapolis

Kansas City

Dallas

San Francisco

−600

−751

−1,008

−9,546

−4,230

−42

−7,707

−5,024

−17,157

−3,024

−794

−1,313

−2,623

−18,034

−25,517

−10,405

−2,033

−10,922

−12,948

−52,921

Assessments by Board
Board expenditures4

35,094

47,911

25,856

7,237

12,289

23,760

153,757

173,330

76,369

33,919

18,127

27,279

86,138

167,133

Consumer Financial Protection
Bureau5

23,224

30,972

16,085

4,503

7,673

17,042

96,774

Assessments by the Board of
Governors

231,648

155,252

75,860

29,867

47,241

126,940

417,664

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

645,166

−8,210,389

−34,463

−197,600

−485,682

−1,563,127

−5,338,114

Earnings remittances to the Treasury

179,395

−8,367,234

−79,805

−216,785

−499,248

−1,627,132

−5,430,056
91,942

Cost of currency

Consolidated variable interest entities

Net (loss) income after providing for
remittances to the Treasury

465,771

156,845

45,342

19,185

13,566

64,005

−399,752

16,180

−8,976

−8,215

7,937

−9,248

2,104

66,019

173,025

36,366

10,970

21,503

54,757

94,046

Dividends on capital stock

49,555

76,193

36,297

11,384

19,659

34,657

196,395

Transferred to/from surplus and
change in accumulated other
comprehensive income6

18,914

96,831

−417

1,841

20,104

−102,350

Other comprehensive income
Comprehensive income
Distribution of comprehensive income

Remittances transferred to the
Treasury7

565,605

−18,388

−1,638

−8,787

−386,210

−8,367,234

−61,416

−215,147

−490,461

−1,627,132

−5,430,056

Earnings remittances to the Treasury,
net

179,395

−8,367,234

−79,805

−216,785

−499,248

−1,627,132

−5,430,056

Total distribution of
comprehensive income

247,864

−8,194,210

−43,441

−205,818

−477,748

−1,572,371

−5,336,011

Deferred asset increase

208 110th Annual Report | 2023

Table G.10. Income and expenses of the Federal Reserve Banks, 1914–2023
Thousands of dollars

Assessments by the
Board of Governors
Federal
Reserve
Bank
and
period

Current
income

Net
additions
Net
or
Board
expenses
deductions expendi(−)1
tures

Distributions to the
U.S. Treasury

Consumer
Other
Financial compreProtection hensive
Costs of
Bureau
income
currency and Office (loss)
of
Financial
Research2

TransDividends
Interest on ferred
paid
Statutory Federal to/from4
transfers3 Reserve surplus
notes

Transferred
to/from
surplus
and
change in
accumulated other
comprehensive
income5

All banks
1914–15

2,173

2,018

302

n/a

217

n/a

1916

5,218

1917

16,128

2,082

−193

192

n/a

4,922

−1,387

238

n/a

1918
1919

67,584

10,577

−3,909

383

n/a

102,381

18,745

−4,673

595

n/a

1920

181,297

27,549

−3,744

710

n/a

1921

122,866

33,722

−6,315

741

n/a

1922

50,499

28,837

−4,442

723

n/a

1923

50,709

29,062

−8,233

703

1924

38,340

27,768

−6,191

1925

41,801

26,819

−4,823

1926

47,600

24,914

1927

43,024

1928

64,053

1929
1930

n/a

1,743

n/a

6,804

1,134

n/a

1,134

5,541

n/a

48,334

5,012

2,704

n/a

70,652

n/a

5,654

60,725

n/a

82,916

n/a

6,120

59,974

n/a

15,993

n/a

6,307

10,851

n/a

−660

n/a

6,553

3,613

n/a

2,546

663

n/a

6,682

114

n/a

−3,078

709

n/a

6,916

n/a

2,474

−3,638

722

1,714

n/a

7,329

818

n/a

8,464

24,894

−2,457

779

1,845

n/a

7,755

250

n/a

5,044

25,401

−5,026

698

806

n/a

8,458

2,585

n/a

21,079

70,955

25,810

−4,862

782

3,099

n/a

9,584

4,283

n/a

22,536

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

1949

316,537

67,931

−12,122

3,243

6,304

n/a

12,329

n/a

193,146

n/a

21,462

(continued)

Statistical Tables 209

Table G.10—continued
Assessments by the
Board of Governors
Federal
Reserve
Bank
and
period

Current
income

Net
additions
Net
or
Board
expenses
deductions expendi(−)1
tures

Distributions to the
U.S. Treasury

Consumer
Other
Financial compreProtection hensive
Costs of
Bureau
income
currency and Office (loss)
of
Financial
Research2

TransDividends
Interest on ferred
paid
Statutory Federal to/from4
transfers3 Reserve surplus
notes

Transferred
to/from
surplus
and
change in
accumulated other
comprehensive
income5

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

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

155,253

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

(continued)

210 110th Annual Report | 2023

Table G.10—continued
Assessments by the
Board of Governors
Federal
Reserve
Bank
and
period

Current
income

Net
additions
Net
or
Board
expenses
deductions expendi(−)1
tures

Distributions to the
U.S. Treasury

Consumer
Other
Financial compreProtection hensive
Costs of
Bureau
income
currency and Office (loss)
of
Financial
Research2

TransDividends
Interest on ferred
paid
Statutory Federal to/from4
transfers3 Reserve surplus
notes

Transferred
to/from
surplus
and
change in
accumulated other
comprehensive
income5

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

2021

123,058,495

11,007,927 −1,489,296

970,000

1,035,105

627,500

1,639,423

583,417

109,024,672

n/a

−40,000

2022

170,683,732 107,849,830 −1,207,343

1,015,000

1,053,616

722,200

1,818,927

1,209,101

59,445,569

n/a

2023

175,136,109 286,480,845

1,144,000

1,047,430

720,500

−275,578

1,488,823 −116,063,336

n/a

−131,200

(continued)

Statistical Tables 211

Table G.10—continued
Assessments by the
Board of Governors
Federal
Reserve
Bank
and
period

Current
income

Net
additions
Net
or
Board
expenses
deductions expendi(−)1
tures

Total
1914–2023 2,429,982,082 682,312,307 38,184,109

Distributions to the
U.S. Treasury

Consumer
Other
Financial compreProtection hensive
Costs of
Bureau
income
currency and Office (loss)
of
Financial
Research2

16,176,118

21,583,623

6,939,577

612,889

281,881

702,406

1,097,706

307,129

34,315

1,158,651,610 361,401,775 27,110,403

TransDividends
Interest on ferred
paid
Statutory Federal to/from4
transfers3 Reserve surplus
notes

29,100,118 501,604,977 1,198,433,402

Transferred
to/from
surplus
and
change in
accumulated other
comprehensive
income5

−4

12,727,3896

Aggregate for each Bank, 1914–2023
Boston
New York

77,234,257 17,002,027

1,273,871

11,891,692

44,842,511

135

491,391

8,405,931 253,867,128

4,776,724

4,862,508

5,387,426

2,279,609

254,168

545,077,826

−433

Philadelphia

69,900,060 15,533,377

721,196

883,705

959,960

376,518

54,040

1,888,518

14,319,913

36,308,189

291

405,335

Cleveland

95,219,039 22,409,748

499,421

1,291,740

1,265,379

579,615

67,357

2,241,595

17,354,800

49,612,575

−10

1,023,445

Richmond

171,924,163 58,882,600

1,878,800

3,164,095

1,865,699

1,459,365

158,431

5,839,553

19,035,258

81,295,580

−72

2,439,416

Atlanta

160,353,024 34,052,070

1,760,900

953,796

2,568,188

352,738

−288,254

1,794,673

45,947,335

75,616,315

572,781

Chicago

182,911,275 46,887,963

1,810,155

942,152

2,115,480

246,311

92,074

1,675,293

22,387,710

109,806,844

749,360

St. Louis

52,249,552

9,613,367

378,748

275,326

736,236

97,136

51,901

485,639

10,046,205

31,149,772

−27

258,647

Minneapolis

28,784,916

7,599,512

416,253

237,403

418,594

41,340

53,571

494,633

4,826,592

15,436,029

195,980

Kansas City

57,092,205 12,393,393

555,764

263,717

737,247

71,276

26,114

498,715

9,036,774

34,476,668

−9

194,439

103,077,981 24,841,623

1,069,226

404,707

1,452,120

116,705

66,140

731,836

26,445,366

49,889,286

289,213

272,583,990 71,694,854

1,711,363

2,194,566

2,979,586

1,011,842

43,033

3,769,860

66,446,207

124,921,807

−17

1,330,661

2,429,982,082 682,312,307 38,194,109

16,176,118

21,583,623

6,939,577

612,889

29,100,118 501,604,977 1,198,433,402

−4

12,727,389

Dallas
San
Francisco
Total

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.
The total transferred to/from surplus and change in accumulated other comprehensive income for the Federal Reserve Bank of Atlanta excludes
$2 million transfer from surplus due to the Office of Employee Benefits’ (OEB) postretirement net actuarial gain resulting from the integration of
operations into the Bank.
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.

212 110th Annual Report | 2023

Table G.11. Operations in principal departments of the Federal Reserve Banks, 2020–23
Operation

2023

2022

2021

2020

Millions of pieces
Currency processed

29,347

Currency destroyed
Coin received

29,695

28,172

26,596

3,639

3,884

1,351

2,044

37,028

31,932

30,370

33,994

131

Checks handled
U.S. government checks1
Postal money orders
Commercial
Securities transfers2

3,146

3,374r

3,657

3,767

193

196

204

184

Commercial

18,858

18,518r

17,895

16,549

Government

1,708

1,661

1,959

1,878

Currency processed

738,523

707,947

657,495

561,278

Currency destroyed

81,914

83,906r

20,426r

30,536r

3,500

2,770

2,811

3,294

286,054

220,813

272,637

205,905

19,522

19,467

20,161

20,558

Funds transfers3
Automated clearinghouse transactions

Millions of dollars

Coin received
Checks handled
U.S. government checks1
Postal money orders
Commercial

8,448,698

8,947,734

8,757,539

7,874,721

434,469,882

341,806,733

310,827,220

361,728,932

1,087,195,950

1,060,257,294

991,810,545

840,483,038

Commercial

39,464,185

38,685,527

31,446,232

Government

8,001,098

7,890,609

8,118,875

6,852,715

Securities transfers2
Funds transfers3
Automated clearinghouse transactions

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.
r Revised.
2
3

Statistical Tables 213

Table G.12. Number and annual salaries of officers and employees of the Federal Reserve Banks,
December 31, 2023
President
Federal Reserve Bank
(including Branches)

Annual
salary
(dollars)1

Other officers
Number

Employees
Number

Annual
salaries
(dollars)1

Full
time

Part
time

Temporary/
hourly2

Total
Annual
salaries
(dollars)1

Number

Annual
salaries
(dollars)1

Boston

481,800

113

34,264,608

1,158

166,237,836

1,282

200,984,244

New York

551,000

576

176,921,270

2,367

375,963,642

2,958

553,435,912

Philadelphia

481,000

18,526,800

796

95,816,054

888

114,823,854

Cleveland

473,700

20,434,000

980

113,158,595

1,095

134,066,295

Richmond

448,600

105

26,356,400

1,445

166,245,557

1,560

193,050,557

Atlanta3

461,700

135

35,913,620

1,603

183,103,041

1,761

219,478,361

Chicago

464,000

168

46,656,997

1,505

197,009,439

1,697

244,130,436

103

27,745,000

1,370

159,045,565

1,487

186,790,565

St. Louis4
Minneapolis

481,100

16,735,554

1,023

109,684,982

1,141

126,901,636

Kansas City

431,500

110

25,824,300

1,932

189,605,635

2,058

215,861,435

Dallas

459,100

20,993,750

1,221

133,599,798

1,315

155,052,648

San Francisco

533,800

129

38,500,407

1,666

224,370,138

1,826

263,404,345

n/a

23,211,200

1,632

230,911,672

1,722

254,122,872

5,267,300

1,816

512,083,906

18,698

159

106

2,344,751,955

20,790

2,862,103,161

Federal Reserve
Information Technology
Total

Note: Components may not sum to totals because of rounding.
1
Annual salary (excluding outside agency costs) based on salaries effective on December 31, 2023.
2
Temporary/hourly employees are paid by the Bank, generally work less than 780 hours, and are employed on a temporary basis (such as interns).
3
In 2023, the Office of Employee Benefits became part of the Federal Reserve Bank of Atlanta.
4
The president of the Federal Reserve Bank of St. Louis retired in August 2023.
n/a Not applicable.

214 110th Annual Report | 2023

Table G.13. Acquisition costs and net book value of the premises of the Federal Reserve Banks and
Branches, December 31, 2023
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

241,418

268,711

94,771

n/a

New York

73,867

675,168

749,035

372,324

n/a

Philadelphia

8,146

174,766

182,912

73,502

n/a

Cleveland

4,585

171,076

175,661

84,297

n/a

4,877

35,717

40,594

10,570

n/a

32,524

209,672

242,196

94,787

n/a

7,916

48,741

56,657

23,686

n/a

Cincinnati
Richmond
Baltimore
Charlotte

7,885

49,592

57,477

25,409

n/a

26,193

166,417

192,610

110,615

n/a

Birmingham

5,347

14,618

19,965

10,292

n/a

Jacksonville

2,185

28,594

30,779

11,518

n/a

Atlanta

New Orleans
Miami
Chicago

3,785

19,524

23,309

10,701

n/a

11,173

62,344

73,517

48,694

n/a

7,459

291,544

299,003

120,347

n/a

Detroit

13,812

77,447

91,259

59,418

n/a

St. Louis

9,467

159,001

168,468

74,512

n/a

Memphis

2,472

28,265

30,737

11,305

n/a

Minneapolis

28,199

135,938

164,137

94,565

n/a

Helena

3,316

10,470

13,786

5,821

n/a

Kansas City

39,011

223,374

262,385

183,767

n/a

Denver

5,346

24,932

30,278

18,271

n/a

Omaha

5,605

16,155

21,760

12,429

n/a

37,960

167,714

205,674

106,650

n/a

263

6,673

6,936

1,404

n/a

Houston

32,893

108,108

141,001

94,486

n/a

San Francisco

21,423

171,981

193,404

81,000

n/a

Los Angeles

6,306

107,732

114,038

53,117

n/a

Salt Lake City

1,294

7,371

8,665

2,727

n/a

Dallas
El Paso

Seattle
Total
1

14,856

54,278

69,134

48,843

n/a

445,458

3,488,630

3,934,088

1,939,828

n/a

Includes expenditures for construction at some offices, pending allocation to appropriate accounts.
In 2023, the Phoenix office costs were consolidated into the Los Angeles Branch because it is an office of that Branch.
n/a Not applicable.
2

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Full text of Annual Report of the Board of Governors of the Federal Reserve System : 2023

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