Membership Application Process

We encourage all banks that are considering membership to contact the Federal Reserve Bank of St. Louis early in their deliberations. In doing so, a bank can make a more informed decision on the benefits of membership and gain a thorough understanding of the application process, including the actions taken by the St. Louis Fed before the membership application is submitted. The process includes an analysis of the bank’s condition. To the extent possible, we rely on recent examinations to gain an understanding of the bank and its operations. This review is typically supplemented by an on-site visit. Depending on the bank’s profile and its examination cycle, our on-site presence may take the form of a targeted or full-scope examination.

Factors Considered in a Membership Application

  • Financial condition, including capital adequacy and future earnings prospects
  • General character of management
  • Record in meeting the convenience and needs of the community
  • Consistency of existing corporate powers with the Federal Reserve Act

Federal Reserve Bank Stock Purchase

Membership requires the purchase of Federal Reserve Bank stock equal to 3% of the member bank’s capital stock and surplus accounts. This stock earns an annual dividend of 6%. As a part of the membership application, the bank will complete an application to purchase Federal Reserve Bank stock.

Need more information?

Reach out to our Bank and Bank Holding Company Applications and Federal Reserve Membership contacts or visit our Application Filings and Notices page, which explains various application types and submission instructions.

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