Federal Reserve Bank
The Federal Reserve Bank (also known as the Fed) is the central banking system of the United States. It was created in 1913 by the Federal Reserve Act to provide the nation with a safer, more flexible, and more stable monetary and financial system. The Federal Reserve Bank is the government’s bank and is responsible for implementing monetary policy, regulating and supervising financial institutions, and providing financial services to depository institutions, the U.S. government, and foreign official institutions.
History of the Federal Reserve Bank
The Federal Reserve Bank was created in response to the financial panic of 1907, which highlighted the need for a more stable and reliable banking system. The Federal Reserve Act was passed by Congress in 1913 and established the Federal Reserve System, which included the Federal Reserve Bank. The Federal Reserve Bank was designed to provide the nation with a more flexible and stable monetary and financial system. The Federal Reserve Bank is responsible for setting monetary policy, regulating and supervising financial institutions, and providing financial services to depository institutions, the U.S. government, and foreign official institutions.
Table of Comparisons
| Type of Bank | Interest Rates | Regulation |
|---|---|---|
| Federal Reserve Bank | Set by the Federal Reserve Board | Regulated by the Federal Reserve Board |
| Commercial Banks | Set by the bank | Regulated by the Federal Reserve Board |
| Savings and Loan Associations | Set by the bank | Regulated by the Federal Deposit Insurance Corporation |
Summary
The Federal Reserve Bank is the central banking system of the United States. It was created in 1913 by the Federal Reserve Act to provide the nation with a safer, more flexible, and more stable monetary and financial system. The Federal Reserve Bank is responsible for setting monetary policy, regulating and supervising financial institutions, and providing financial services to depository institutions, the U.S. government, and foreign official institutions. For more information about the Federal Reserve Bank, please visit the Federal Reserve Bank’s website or the Federal Reserve Board’s website.
See Also
- Monetary Policy
- Federal Reserve System
- Federal Reserve Board
- Federal Deposit Insurance Corporation
- Commercial Banks
- Savings and Loan Associations
- Interest Rates
- Financial Regulation
- Financial Services
- Depository Institutions
