Skip to main content

Become a Member Bank

Membership in the Federal Reserve

If you’re a state-chartered bank, you can become a member of the Federal Reserve System.

At the Minneapolis Fed, we have examination staff in Minneapolis and Helena, Montana. To ensure open communication and consistency, we appoint a safety-and-soundness central point of contact and a consumer affairs contact for each state member bank, and our supervision of state member banks occurs in partnership with the state regulator.

Member banks are eligible to vote for directors of the Minneapolis Fed and are eligible for service as a director.

What does it cost? We don’t charge community banks fees for supervision or applications. Each state member bank must subscribe to capital stock in the Minneapolis Fed in an amount equal to 6 percent of its combined capital and surplus (but excluding retained earnings); 3 percent must be paid in, and the remaining 3 percent is on call. The paid-in portion currently earns an annual dividend of 6 percent.

Watch Christine Gaffney, our senior vice president for Supervision, Regulation, and Credit (SRC), to learn more.

Application Process to Become a State Chartered Member Bank

We encourage banks considering membership to contact the Reserve Bank for guidance and assistance prior to submission of an application for membership. In this situation, we will determine whether an examination is required prior to submission of the application and can discuss the timing for filing the application. SR 15-11 / CA 15-9 provides an explanation of the criteria for waiving or conducting pre-membership safety-and-soundness and consumer-compliance examinations of insured depository institutions that are seeking to become state member banks. If an examination is required, the membership application should not be filed until the examination findings are available.

To become a state-chartered member bank, an application is filed with the Reserve Bank using the form FR 2083A/B/C (Application to the Board of Governors of the Federal Reserve System for Membership in the Federal Reserve System).

The factors considered in applications for membership are an institution’s financial condition, including capital adequacy and future earnings prospects, the general character of an institution’s management, the institution’s record in meeting the convenience and needs of the community, and whether its corporate powers are consistent with the purposes of the Federal Reserve Act (that is, whether the institution is primarily engaged in the business of banking). There is no public notice requirement for a membership application.

Expedited applications can take as little as 15 days for well-capitalized institutions with CAMELS and compliance ratings of 1 or 2, a satisfactory Community Reinvestment Act rating, and no major unresolved supervisory issues. For other membership applications, the Federal Reserve normally acts within 30-60 calendar days unless the Federal Reserve notifies the applicant that the processing period is being extended.

Federal Reserve membership does not convey Federal Deposit Insurance Corporation coverage or a state bank charter. A separate application would need to be filed with the FDIC and appropriate state regulator for a de novo state member bank.

The Reserve Bank’s Mergers and Acquisition staff is available to provide guidance and assistance prior to submission of a membership application. Questions about applications may also be submitted to M&A Mailbox.