Atlanta Fed Announces Plans for Continued Birmingham Presence
|Birmingham Branch staff will continue to conduct bank supervision and regulation, community development, and economic and financial education programs as well as some contingency functions.
In March, the Federal Reserve Bank of Atlanta announced plans to continue providing a full range of Federal Reserve services in Alabama. As part of these plans, the bank will maintain a small staff in Birmingham for certain functions and will move forward with previously announced plans to establish a cash depot later this year to handle cash paying and receiving between the Federal Reserve and the state’s financial institutions.
Branch maintains key functions, economic monitoring
Birmingham Branch staff will continue to conduct bank supervision and regulation, community development, and economic and financial education programs as well as some contingency functions. As it has in the past, the Atlanta Fed also will continue to gather economic intelligence on Alabama’s economy through its Birmingham board of directors for use in formulating national monetary policy. The Atlanta Fed also announced that it currently plans to retain its Birmingham building by seeking to lease the space that the bank will no longer use.
Changes in checks, cash prompt moves
The Atlanta Fed’s plans for its Birmingham presence follow the discontinuation of the branch’s check processing operations in March 2005. The changes in check processing were spurred by a substantial increase in electronic payment transactions and a declining number of checks being written nationally. The Atlanta office now processes checks for financial institutions in the Birmingham Branch’s zone, which includes all of Alabama except for the state’s Gulf Coast counties.
The changes planned for the branch’s cash processing follow a Reserve Bank effort to ensure that the banks are most effectively providing cash services to the nation’s financial institutions. In June 2005, the Reserve Banks announced that cash processing services would be relocated from several offices, including Birmingham, and that contracted private-sector depots would handle cash paying and receiving between these Reserve Bank offices and financial institutions. The transition to a cash depot for Birmingham should be complete by early October 2006.