Pursuant to the Federal Reserve Act, the operations of each Reserve Bank are conducted under “the supervision and control of a board of directors” and directors “shall perform duties usually appertaining to the office of directors of banking associations and all such duties as are prescribed by law.”
Minneapolis Fed directors serve on one or more of the following committees: the executive committee, the audit committee, the nominating and governance committee, and the budget, evaluation, and risk committee. Through committee and board deliberations, the Board reviews and approves the Bank’s annual budget, reviews Bank performance, and oversees the internal audit program and control environment.
Importantly, the Board of Directors is not involved with oversight of the banking supervision and regulation function conducted by Reserve Banks under delegated authority from the Board of Governors. Accordingly, directors are not involved in institution-specific supervision and regulation matters, nor do they have access to confidential supervisory information. As described in the bylaws, there are some supervision and regulation matters of an administrative nature that may be considered by the Board of Directors, such as (i) the approval of the supervision and regulation annual budget; (ii) review of any Board of Governors’ operations review reports of the function and review and approval of internal audit reports for the function; and (iii) the appointment and compensation of Bank officers (below the rank of President) with responsibility for supervision and regulation. Class A and Class B Directors are not even involved in the deliberations of these administrative matters, nor may they vote on them.
Even though they have important roles and responsibilities, Reserve Bank directors receive only a very modest stipend for their services; they are also reimbursed for travel expenses incurred in the performance of their duties.
Bylaws of the Federal Reserve Bank of Minneapolis govern the organization’s operation and its activities.
Committee Charters and Assignments
The Minneapolis Fed Board of Directors has four committees. As part of their oversight, the directors serve on various committees.
Policies and Oaths of Office
Learn more about the policies and requirements [off-site] governing Reserve Bank directors. In October 2011, the Government Accountability Office released a report [off-site] on Reserve Bank governance.
View sample Oaths of Office for Reserve Bank Directors [off-site PDF].