Atlanta Fed to Change Method of Providing Cash Services in the Nashville Zone, Maintain Policy Presence in Tennessee
For immediate release: June 24, 2010
ATLANTA—The Federal Reserve Bank of Atlanta today announced a change to cash services at its Nashville Branch intended to improve the efficiency of cash distribution provided by the Federal Reserve. With this change, the Bank will switch from branch-based cash services to a cash depot in mid-2011; more information about specific dates will be provided when available. The Bank's Atlanta office will count deposits and prepare orders to be sent to the Nashville cash depot.
The Atlanta Fed will continue to maintain a solid presence at its Nashville Branch, to include work related to the Bank's Regional Economic Information Network, community development and economic and financial education. The Branch's local board of directors also will continue to provide important insight into Tennessee's economy to help formulate national monetary policy.
When the cash processing transition is completed, the Nashville Branch will have approximately 15 employees, down from its current staff of 54. This transition is expected to be completed in mid-2011. The Atlanta Fed will offer a variety of programs to assist affected staff, including separation packages, extended medical coverage and career transition assistance.
"Because Nashville and Tennessee represent vital parts of the overall Southeast economy, we will continue to have a solid presence in Nashville," said Dennis Lockhart, president and chief executive officer of the Atlanta Fed. "The area will continue to have input into national monetary policy, and the Fed will continue to provide a variety of important programs in the state. Also, financial institutions will continue to have access to the Federal Reserve's cash services."
Financial institutions in Tennessee served by the Nashville Branch will receive the same level of service from the Atlanta Fed's cash function based in its Atlanta head office.
A cash depot is an alternative market presence for Federal Reserve cash services. With a cash depot, the Federal Reserve contracts with a third party—usually an armored carrier—that acts as a secure collection point for Federal Reserve currency deposits from the region's depository institutions. The depot also distributes currency orders that depository institutions have placed with the Reserve Bank. The work of counting deposits and preparing orders is done by a Federal Reserve office in another city. The Federal Reserve pays for the transportation between the Reserve Bank office and the depot operator. The operator follows strict procedures developed by the Federal Reserve.
The Atlanta Fed will determine at a later date if it will sell or retain and lease space to tenants in its Nashville Branch building, which is located at 301 Rosa L. Parks Avenue.
The Federal Reserve Bank of Atlanta serves the Sixth Federal Reserve District, which encompasses Alabama, Florida, Georgia and parts of Louisiana, Mississippi and Tennessee. As part of the nation's central banking system, the Atlanta Fed participates in setting national monetary policy, supervises numerous commercial banks and provides a variety of financial services to depository institutions and the U.S. government.