Q: Which banks typically file membership applications?
A: A state-chartered bank proposing to become a member of the Federal Reserve System, or a national bank converting to a state charter and wishing to remain a member of the Federal Reserve System, must file a membership application.
Q: Why would a bank want to be a state member bank?
A: You can learn more about the benefits of state membership here.
Q: Should I contact the Reserve Bank before filing the application?
A: Yes, before submitting a membership application, please contact the Reserve Bank. We will determine whether a premembership examination or prefiling meeting is required.
Q: Is there a membership application form?
A: Yes, use form FR 2083.
Q: Is public notice in the newspaper or Federal Register required?
A: No public notice is required.
Q: How long does it take for the Reserve Bank to process a membership application?
A: For banks that qualify for expedited treatment, the processing period is 15 calendar days. The criteria for expedited treatment are defined in section 208.2(e) and 208.3(c)(1) of Regulation H. For other banks, the processing period is 30 or 60 calendar days unless the applicant is notified of an extension of the processing period. The start of the processing period may be delayed if a premembership examination is required or if a state charter application is in process.
Q: Is there a membership fee?
A: There is no fee to file a membership application. A state member bank is required to subscribe to capital stock in the Federal Reserve Bank in an amount equal to 6 percent of its combined capital and surplus (excluding retained earnings), with 3 percent paid-in and the remaining 3 percent on call. A mutual savings bank must place a deposit at the Reserve Bank equivalent to the capital requirement. The Federal Reserve's National Accounting Customer Support team may be reached at (800) 309-6156 and can assist with the stock subscription.
Q: What steps does a bank take to become a state member bank?
A: The first step is contacting the Reserve Bank to discuss membership.
If the bank is a newly organized one, it should:
- Apply for deposit insurance with the Federal Deposit Insurance Corporation (FDIC);
- Apply with the appropriate state banking authority for a state bank charter;
- Submit Form FR 2083 to the Reserve Bank along with copies of the FDIC and state banking applications; and
- Provide evidence of charter approval as soon as it becomes available.
If the bank is an existing one, it should notify the bank's current regulator(s) of its intent to convert to a state member bank. If it is converting from a national charter, it should apply with the appropriate state banking authority for a state charter; provide a copy of the state banking application to the Reserve Bank; and, upon receipt of preliminary state charter approval, submit form FR 2083 to the Reserve Bank.
If the bank is converting from a state nonmember bank, it should submit form FR 2083 to the Reserve Bank.
Q: Who can I contact for more information or if I have questions?
A: Contact Sabrina Francis, director of applications (404-498-7368).