The interim final rule also establishes the process for state member banks and uninsured state branches or agencies of foreign banks to apply to the Federal Reserve for transition relief.4 Although the rule is already effective, we are seeking comments on it and will revise the rule, as necessary, in light of comments received.
Oversight of community banks In addition to overseeing large banking firms, the Federal Reserve supervises approximately 800 state-chartered community banks that are members of the Federal Reserve System.5 Community banks play an important role in extending credit in local economies across the country – particularly, though by no means only, in their lending to small and medium-sized businesses.