FAQs
What are Reserve Bank master accounts and financial services?
Reserve Bank master accounts are accounts in which a Reserve Bank receives deposits for a financial institution, such as a bank or credit union.
Reserve Bank financial services are provided to financial institutions by Reserve Banks. These services are similar to the services that banks and credit unions provide to their customers and include collecting checks, electronically transferring funds, and distributing and receiving cash and coin. For additional information, please see frbservices.org.
Financial institutions accessing Reserve Bank financial services can settle transactions either by having their own master account or by using another depository institution's master account. Both avenues of access to Reserve Bank financial services are subject to the Account Access Guidelines (discussed below) and disclosed in the Database.
What are the factors evaluated in determining whether an institution is granted access to Reserve Bank master accounts and financial services?
The Federal Reserve Board has adopted Account Access Guidelines that establish a transparent, risk-based, and consistent set of factors for Reserve Banks to use when exercising their discretion to make determinations on requests to access Reserve Bank financial services.
The guidelines include six principles to be used by Reserve Banks in evaluating access requests. The first principle specifies that only institutions that are legally eligible for access to Reserve Bank accounts and services will be considered for access. The remaining five principles focus on risks an institution's access could pose: (1) credit, operational, settlement, cyber or other risks to the Reserve Bank; (2) credit, liquidity, operational, settlement, cyber or other risks to the overall payment system; (3) risk to the stability of the U.S. financial system; (4) risk to the overall economy; and (5) effect on the Federal Reserve's ability to implement monetary policy.
The guidelines set forth a three-tiered review framework to provide additional clarity on the level of due diligence and scrutiny that Reserve Banks will apply when reviewing access requests from different types of institutions. Institutions in a higher tier generally will be subjected to greater due diligence and scrutiny than institutions in a lower tier.
The Reserve Banks apply these factors to all access requests, regardless of whether the financial institution intends to settle transactions in its own master account or the master account of another depository institution.
What does the Existing Access database include?
The Existing Access database consists of financial institutions that have access to Reserve Bank financial services. These institutions either have their own Reserve Bank master account or access Reserve Bank financial services by settling transactions in the master account of another depository institution.
Does every financial institution listed in the Existing Access database have its own master account?
No. A financial institution's inclusion in the Existing Access database means that it has access to Reserve Bank financial services. The institution either has its own Reserve Bank master account or accesses Reserve Bank financial services by settling transactions in the master account of another depository institution.
The Reserve Banks apply the Account Access Guidelines to all access requests. A financial institution must meet the same legal eligibility and other criteria under the Account Access Guidelines to have a master account or to access Reserve Bank financial services by settling transactions in the master account of another depository institution.
What does the Access Requests database include?
The Access Requests database consists of financial institutions that have submitted an access request after December 23, 2022 (or that had submitted an access request that was pending on December 23, 2022), along with the status of these requests. These institutions either are seeking their own Reserve Bank master account or intend to access Reserve Bank financial services by settling transactions in the master account of another depository institution.