'Federal Reserve Bank' is explained in detail and with examples in the Trading edition of the Herold Financial Dictionary, which you can get from Amazon in Ebook or Paperback edition.
Twelve different Federal Reserve Banks make up the Federal Reserve System that functions as the central bank for the U.S. Federal reserve banks are also utilized to sub-divide up the country into the twelve Federal Reserve Districts.
Every Federal Reserve Bank bears the responsibility for individually regulating the various commercial banks that are found in such a bank’s geographical district. Ensuring the continuation of the financial system and all of the member banks is among the primary responsibilities of the Federal Reserve System.
Each Federal Reserve Bank also issues its own stock shares that can only be acquired by participating member banks. The banks are required to obtain these shares by law. While the shares may not be traded, pledged as a loan security, or sold, they do pay dividends that run as high as six percent each year.
American banks are required by law to keep certain fractional reserves of their actual deposits. These are mostly held by the regional Federal Reserve Banks. Although in years past, the Federal Reserve did not pay member banks interest on these funds kept on reserve, as of 2008 Congress passed the EESA that permits them to pay the participating banks interest.
The twelve Federal Reserve Banks and districts are found geographically spread out around the nation. They include the Federal Reserve Banks of Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, Dallas, and San Francisco.
The largest and still most important of the individual Federal Reserve Banks proves to be the Federal Reserve Bank of New York. Not only does this bank have the greatest asset base of all the twelve branches, valued at over a trillion dollars and representing four times the asset base of the next largest Federal Reserve Bank, but it also boasts the biggest gold depository on earth, valued at in excess of $25 billion. The gold kept in the New York Federal Reserve Bank vaults belongs to other nations who store it there for safe keeping. Saudi Arabia and Kuwait both keep their significant holdings here.
Among the various states that have Federal Reserve Banks headquartered there, a few of them contain more than one branch within their state. California, Missouri, and Tennessee are the ones that make this claim. Tennessee actually contains two branches from two different districts within its state boundaries. The only state that has two Federal Reserve Banks headquartered within it is Missouri. For the largest geographical areas covered by the districts, San Francisco is the largest, Kansas City is second biggest, and Minneapolis is the third largest.