The Federal Reserve Act provides that Reserve Bank directors are divided into three classes—Class C, Class B, and Class A. Each class is comprised of three directors.
Class C and Class B directors are appointed to represent the public with due, but not exclusive, consideration to the interests of agricultural, commerce, industry, services, labor, and consumers. Class A directors are elected to represent Federal Reserve member banks.
The Federal Reserve Board of Governors appoints Class C directors. Class C directors may not be an officer, director, employee, or stockholder of any bank—or a bank, financial, or thrift holding company. The Board of Governors also designates a board chair and deputy chair for each Reserve Bank from among that Bank's Class C directors. The chair must have experience or familiarity with banking or financial services.
Federal Reserve member banks elect Class B and Class A directors. Class B directors are elected to represent the public, and they may not be an officer, director, or employee of any bank. Class A directors are elected to represent the member banks. They are prohibited from participating in the appointment of Reserve Bank presidents and first vice presidents, as well as decisions related to the performance and compensation of presidents and first vice presidents. In addition, they may not participate in the selection, appointment, and compensation of all Reserve Bank officers whose primary duties involve supervisory matters.
Class B and Class C directors represent the public with due, but not exclusive consideration to the interests of agricultural, commerce, industry, services, labor, and consumers.
Board of Governors policy prohibits Reserve Banks from providing confidential supervisory information to any director and excludes all directors from participating in any bank supervisory matters. Learn more about the roles and responsibilities of Federal Reserve Directors.
How many directors are there?
Each of the 12 regional Reserve Banks is supervised by a nine-member board of directors. Each branch also has its own board of directors. In the Sixth District, our five branches in Birmingham, Jacksonville, Miami, Nashville, and New Orleans each have a seven-member board.
What are the eligibility requirements of directors?
All directors are subject to eligibility and conduct rules established by the Federal Reserve Act and the Board of Governors. These statutory and policy provisions serve important purposes such as protecting against actual and perceived conflicts of interest, which is critical to maintaining the public's confidence in the integrity of the Federal Reserve.
What committees do directors participate in?
Committee assignments vary by district. The Atlanta Fed has two standing committees for Atlanta directors. The Audit and Operational Risk Committee consists of a minimum of three directors serving one-year terms. The Executive Committee consists of the three Class C directors whom the Board of Governors has appointed.
The Audit and Operational Risk Committee oversees the Bank's internal and external audit function to ensure independent and objective assessment of the Bank's risk management, control, compliance, and governance processes.
The Executive Committee has responsibility to direct certain business matters of the Bank, subject to the supervision of the full board of directors.
How long do directors serve?
Reserve Bank directors are elected or appointed for staggered three-year terms. When a director leaves before a term is completed, the replacement director serves the unexpired portion of that term. Directors may serve two terms or a maximum of seven years.
