A US depository institution that is a member of the Federal Reserve System. National banks are required to be member banks while qualifying state-chartered banks may elect to become members (referred to as state member banks). State member banks are subject to the primary federal regulatory oversight of the Federal Reserve Board (FRB).

Member banks are required to, among other things:

State banks that elect to become member banks generally do so for the reputational benefits, as well as the opportunity to serve as a director of the Federal Reserve System and affect monetary policy.

For more information on member banks and how they are regulated, see Practice Note, US Banking Law: Overview.