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Board Report: 2026-FMIC-B-013 September 1, 2026
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At the 12 Federal Reserve Banks, executive leaders and directors are involved in important functions like monetary policy, payment services, and supervision of financial institutions.
We found that the Board can strengthen its processes for selecting certain Reserve Bank leaders. For example, the Board can improve controls (1) to assess Class C directors' eligibility and ensure they are aware of federal conflict of interest laws and (2) that define the Board and Reserve Bank's roles and responsibilities for selecting Class C directors.
Figure. Composition of Reserve Bank Boards of Directors
Source: Board, Overview: Federal Reserve System Boards of Directors.
For Reserve Bank presidents and first vice presidents, the Board’s approval process has key controls, but its written guidance does not require Reserve Banks to identify or report potential conflicts of interest between candidates and external search firms. Further, the Board does not clearly define the roles and responsibilities of individuals involved in consultations for certain Reserve Bank executives.
We have 10 recommendations to strengthen the Board’s processes for selecting certain Reserve Bank leaders.
