GALLIPOLIS, Ohio, May 20, 2013 /PRNewswire/ -- The Federal Reserve Bank of Cleveland has approved an application by Ohio Valley Bank, Gallipolis, Ohio, to become a member of the Federal Reserve System.
Ohio Valley Bank President and CEO Tom Wiseman commented, "I congratulate the employees of Ohio Valley Bank for achieving this milestone in the bank's history. This membership opens up the opportunity for Ohio Valley Bank to have a more active role in our nation's banking system."
Banks that are state-chartered, like Ohio Valley Bank, are divided into those that are members of the Federal Reserve System (state member banks) and those that are not (state nonmember banks). State banks are not required to join the Federal Reserve System, but they may apply to become members if they meet the standards set by the Board of Governors. Ohio Valley Bank has met those standards.
Membership in the Federal Reserve System provides a bank with the ability to take part in the election of directors to the board of the Federal Reserve Bank in the Reserve District in which the bank is headquartered. Directors of Federal Reserve Banks establish the primary credit rates, otherwise known as discount rates, of the Reserve Banks, subject to the approval of the Board of Governors of the Federal Reserve System; provide information on economic conditions, which is used in the process of establishing monetary policy; and provide general oversight of the operations of Reserve Banks. Member banks are also permitted to hold stock in their regional Federal Reserve Bank. For Ohio Valley Bank, this would be the Federal Reserve Bank of Cleveland. The stock pays a dividend annually as provided by law.
The Federal Reserve Bank of Cleveland is one of 12 regional Reserve Banks that, along with the Board of Governors in Washington, D.C., comprise the Federal Reserve System. As the nation's central bank, the Federal Reserve System formulates U.S. monetary policy; supervises state-chartered member banks and bank, thrift, and financial holding companies; extends credit to depository institutions through its discount window; and provides payment services to financial institutions and the U.S. government. Payment services include check clearing, electronic payments, and the distribution and processing of currency and coin.
The Federal Reserve Bank of Cleveland, including its branch offices in Cincinnati and Pittsburgh, serves the Fourth Federal Reserve District, which includes Ohio, western Pennsylvania, eastern Kentucky, and the northern panhandle of West Virginia.
Ohio Valley Bank, established in 1872, is a FDIC-insured community bank operating 15 offices in southern Ohio and western West Virginia. Shares of Ohio Valley Banc Corp. stock are available on The NASDAQ Global Market under the symbol, OVBC. Learn more about Ohio Valley Bank at the company's newly re-designed website, www.ovbc.com.
Contact: Bryna Butler, [email protected], 740.446.2631 ext.253
SOURCE Ohio Valley Bank