Legal Definitions - reserve bank

Definition: A financial establishment that is a member of the Federal Reserve System and is responsible for regulating monetary policy and providing banking services to other banks.

Examples: The Federal Reserve Bank of New York, the Federal Reserve Bank of San Francisco, and the Federal Reserve Bank of Chicago.

Explanation: Reserve banks are responsible for implementing monetary policy, which includes setting interest rates and regulating the money supply. They also provide banking services to other banks, such as clearing checks and processing electronic payments. The examples illustrate different reserve banks located in different regions of the United States.