In response to this, the Federal Reserve System was created by the Federal Reserve Act of 1913, establishing a new central bank intended to serve as a formal "lender of last resort" to banks in times of liquidity crisis—panics where depositors tried to withdraw their money faster than a bank could pay it out. Banks will often turn to the Fed as a last resort where they can borrow money when there is nowhere else to go. Since these markets may be revised as new information becomes available or as additional analysis of these markets is performed, it is advisable to check with the Research Department before using these definitions. Board of Governors of the Federal Reserve System. As the country's central banking authority, the Federal Reserve System operates in 12 designated regions (or districts) throughout the United States. (2) The appropriate Federal Reserve Bank need not be the Reserve Bank of the Federal Reserve District in which the foreign bank's home state is located. These banks are the operating arms of the central bank. Federal Reserve Bank - definition of Federal Reserve Bank. See more. Board of Governors of the Federal Reserve System. It also sets the discount rate, which is the interest rate the Fed charges on loans made to financial institutions and other commercial banks. Definition: Federal Reserve Bank. (J) “Relevant Governmental Body” means the Federal Reserve Board and/or the Federal Reserve Bank of New York, or a committee officially endorsed or convened by the Federal Reserve Board and/or the Federal Reserve Bank of New York or any successor thereto. Bill Emmons is an assistant vice president and economist in the Supervision Division at the Federal Reserve Bank of St. Louis. What is the meaning of Federal Reserve bank? The Federal Open Market Committee (FOMC), on the other hand, is the Federal Reserve’s main monetary policymaking body. 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