Responsibilities of Directors
(Approved by Resolution of the Board of Directors, January 11, 2007)
The Board of Directors of the Federal Reserve Bank of St. Louis shall prescribe bylaws under which the Bank's business shall be conducted.
The Board shall ensure that (a) the Bank's affairs are carried out competently, in the public interest, and ethically, in accordance with the law and the policies of the Board of Governors, (b) the Bank is responsive to the needs of the public, particularly the needs of the Eighth District, and that appropriate measures are taken to foster public understanding of the policies and actions of the Bank and the Federal Reserve System, (c) the Bank is responsive to the needs of the Federal Reserve System, particularly with respect to the special responsibilities to the System served by the Bank, and (d) quality services are provided by the Bank to the U.S. Treasury.
The Board shall meet periodically to supply the Bank's president, and the Board of Governors, with information and observations on regional and national economic and financial conditions, including governmental policy, that relate to the conduct of the Bank's affairs or to the formulation of monetary policy. The Board will establish, subject to review and determination by the Board of Governors, the Bank's discount rates, and communicate to the Board of Governors their collective views on monetary policy.
The Board shall supervise the maintenance of an effective system of internal auditing procedures and controls through a General Auditor who shall report directly to the Board. The Board shall review (a) the annual audit undertaken by the Bank's external auditor, and (b) the effectiveness of the Bank's management of risk.
The Board will review and approve (a) the Bank's strategic goals and objectives, as proposed by management, and use those goals and objectives, among other criteria, to evaluate the Bank's performance, (b) the Bank's annual budget, and monitor the Bank's performance against the budget, and (c) on an on-going basis, material changes in Bank policy or new initiatives, and provide direction on matters of strategic interest or material impact to the Bank.
The Board shall oversee the Bank's human resources objectives and policies and the Bank's ethics policies for employees and directors. The Board will define the duties of, select, dismiss, compensate, appraise and advise the Bank's senior management, subject to the responsibilities of the Board of Governors as defined by statute.
Annually, the Board shall (a) elect one of five representatives to the Federal Open Market Committee, as prescribed by the law, (b) select a District representative to the Federal Advisory Council, and (c) appraise its effectiveness and take whatever steps are necessary to improve it. The Board shall appoint a majority of Branch Directors.