How many regional banks comprise the Federal Reserve System?

The Federal Reserve System is composed of 12 regional banks. Each of these banks represents a specific region of the United States, and they serve to implement the monetary policy set by the Federal Reserve Board of Governors. These regional banks are responsible for various functions, including supervising and regulating member banks, providing financial services, and contributing to the overall economic research and policy formulation.

This structure is designed to provide a decentralized banking system that can effectively manage the diverse financial needs of different regions within the country. The 12 regional banks each operate independently but are coordinated by the Board of Governors, ensuring that local perspectives are considered in the formulation of national monetary policy.

Understanding this aspect of the Federal Reserve System highlights the balance between federal oversight and regional representation, which is crucial for maintaining a stable and responsive financial system.