The Federal Reserve Bank of Kansas City carries out an important role by providing supervisory and regulatory oversight to financial institutions domiciled in the Tenth Federal Reserve District. We supervise state chartered banks that choose to be members of the Federal Reserve System, trust companies, data processing centers that service state member banks, and bank and financial holding companies, which control one or more commercial banks. To carry out these responsibilities, we have staff members located at our head office in Kansas City, as well as at our branch offices in Denver, Oklahoma City and Omaha.

By law, each state member bank undergoes a safety and soundness examination in intervals ranging from 12 to 18 months. If applicable, state member banks also undergo trust examinations and information technology examinations. Trust companies also are examined once during a 12- to 18-month period. Large, complex, or problem bank and financial holding companies are inspected at intervals ranging from 12 to 24 months. As for the small, shell holding companies, our examiners conduct risk assessments to review their financial condition following the examination of the lead subsidiary bank. All of the aforementioned tasks require examiners to review the records and operations of an institution in order to determine if management is adequately addressing risks, as well as maintaining compliance with applicable laws and regulations.

The Federal Reserve Bank of Kansas City also plays an integral role in making sure that individuals, as consumers of credit, are informed properly and treated fairly in credit and other financial transactions. Examiners from the Consumer Affairs Department visit state member banks to assure that the banks are complying with consumer protection laws, such as the Truth in Lending and the Equal Credit Opportunity Acts. Depending on the size of the institution, consumer compliance examinations normally occur in intervals of 24 months for bank's with assets greater than $250 million and 48 to 60 months for smaller-sized banks. Persons who have a problem with a credit transaction at a state member bank should remember that our staff of examiners is ready to provide the needed assistance to resolve consumer issues.
Banks also are required to meet certain community reinvestment obligations as outlined by the Community Reinvestment Act. We examine state member banks to determine if they are meeting the credit needs of their entire communities, including the needs of low- to moderate-income borrowers.

The Federal Reserve Bank of Kansas City is also responsible for processing various types of applications filed by banks and bank or financial holding companies. State chartered banks which desire to become members of the Federal Reserve System are required to submit an application for membership. Similarly, bank or financial holding companies must submit an application prior to acquiring a bank or engaging in certain activities. While we can approve most applications at the Reserve Bank level, applications that present significant issues or raise policy questions may require review and action by the Federal Reserve Board of Governors in Washington, D.C.