Explore This Section

Supervising & Regulating Financial Institutions

The Federal Reserve works with other federal and state authorities to promote safety and soundness in the financial industry and sets specific guidelines for the structure and conduct of banking. The Board of Governors leads this effort, with the staffs at the 12 Reserve Banks operating under delegated authority from the Board. In the Third District, the Supervision, Regulation and Credit (SRC) Department of the Philadelphia Fed supervises and regulates the domestic and foreign operations of financial holding companies (FHCs), bank holding companies (BHCs), savings and loan holding companies, and state-chartered member banks. SRC also supervises U.S. branches, agencies, and nonbank operations of foreign banks located in the Third District.

In its supervisory role, SRC assesses the conditions and risk-management processes of these institutions and their compliance with relevant laws and regulations. SRC also provides liquidity to all eligible Third District depository institutions and administers the Federal Reserve System’s payments system risk policy through its discount window operations.