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Local bank becomes member of Federal Reserve

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GREENFIELD — Greenfield Cooperative Bank has become a member of the “bank for banks.”

The local bank’s president, Michael Tucker, said Greenfield Cooperative Bank joined the Federal Reserve System through the purchase of stock in the Federal Reserve Bank of Boston.

“It doesn’t really affect our customers,” said Tucker. “It just means that the Federal Reserve will regulate and supervise us and it means we now have a vote.”

The Federal Reserve, which was created in 1913, is the central banking system of the United States. It creates the nation’s monetary policies and regulates and supervises banks.

Tucker said the bank thought it would be a good idea to join for a number of reasons, including being able to short-term borrow if it ever needs to.

“If there’s ever an issue, say for instance all of our money is invested and we need to get money to our depositors, the Fed would step in and help,” said Tucker. “That’s all it is.”

Greenfield Savings Bank President Rebecca Caplice said GSB has been a member for many years.

“It provides oversight and if you ever have a problem and you don’t have the money needed, it’s there with a promise to help,” said Caplice. “It’s someone else looking out for us.”

The two local banks are chartered by the state, so there is also oversight by it and by the Federal Deposit Insurance Corp., said Tucker and Caplice.

A spokeswoman for the Federal Reserve Bank of Boston could not be reached by press time.

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