Cleveland Fed Approves Application by Madison Bank, Richmond, Kentucky, to Become a Member of the Federal Reserve System

The Federal Reserve Bank of Cleveland announced its approval of an application by Madison Bank, Richmond, Kentucky, to become a member of the Federal Reserve System.

The Federal Reserve Bank of Cleveland is one of 12 regional Reserve Banks that, along with the Federal Open Market Committee and the Board of Governors in Washington, D.C., comprise the Federal Reserve System. As the nation's central bank, the Federal Reserve System formulates U.S. monetary policy, supervises state-chartered member banks and all bank holding companies, extends credit to depository institutions through its discount window, and provides payment services to depository institutions and the U.S. government. Payment services include check clearing, electronic payments, and the distribution and processing of currency and coin.

Membership in the Federal Reserve System provides a bank with the ability to take part in the election of directors to the board of the Federal Reserve Bank in the Reserve District in which the bank is headquartered. Directors of Federal Reserve Banks establish the discount rates of the Reserve Banks, subject to the approval of the Board of Governors of the Federal Reserve System; provide information on economic conditions, which is used in the process of establishing monetary policy; and provide general oversight of the operations of Reserve Banks.

Federal Reserve Bank of Cleveland

The Federal Reserve Bank of Cleveland is one of 12 regional Reserve Banks that along with the Board of Governors in Washington DC comprise the Federal Reserve System. Part of the US central bank, the Cleveland Fed participates in the formulation of our nation’s monetary policy, supervises banking organizations, provides payment and other services to financial institutions and to the US Treasury, and performs many activities that support Federal Reserve operations System-wide. In addition, the Bank supports the well-being of communities across the Fourth Federal Reserve District through a wide array of research, outreach, and educational activities.

The Cleveland Fed, with branches in Cincinnati and Pittsburgh, serves an area that comprises Ohio, western Pennsylvania, eastern Kentucky, and the northern panhandle of West Virginia.

Media contact

Doug Campbell, doug.campbell@clev.frb.org, 513.455.4479