Membership Application Process

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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.

Step 1: Pre-Membership

  1. Discussions Between Bank and St. Louis Fed
  2. Bank’s Board Adopts Membership Resolutions
  3. St. Louis Fed Performs Analysis and May Conduct On-site Visit

Step 2: Application

  1. Bank Submits Application
  2. St. Louis Fed Processes Application

Step 3: Stock Purchase

  1. Finalize Arrangements to Purchase Federal Reserve Bank Stock
  2. St. Louis Fed Issues Stock and Membership Becomes Effective

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.