Each Reserve Bank has a board of directors representing the private sector, which selects the Bank's officers and oversees the general operations of the Bank. All Reserve Bank directors serve three-year terms. The nine members of the board of directors are familiar with the district's economic and credit conditions and broadly represent both the Bank's stockholders and the public served by the Bank. Each board is divided into three classes of three persons each.

Class A directors represent commercial banks that are members of the Federal Reserve System, since these banks are the Reserve Bank stockholders.
Class B directors represent the public and are drawn from diverse sectors, including agriculture, business and labor. They may not be officers, directors or employees of any bank.
Class A and B directors of each Reserve Bank are elected by the member banks in that Fed's district.
Class C directors also represent the public and cannot be officers, directors or employees of any bank.
The Board of Governors appoints Class C directors and names the chairman of the board and the deputy chairman for one-year terms.
In addition to the 12 Reserve Bank boards, each Reserve Bank Branch has a board consisting of either five or seven members. A majority of the members of Branch boards are appointed by the respective Bank boards; the remaining are appointed by the Board of Governors. Branch directors serve for either two- or three-year terms, depending on the size of the Branch board. The chairman of a Branch board is selected from among those appointed by the Board of Governors.
Directorships generally are limited to two terms to ensure a diversity of backgrounds and experience among the individuals.
What Directors Do
The responsibilities of directors range from the supervision of the Reserve Bank to making recommendations on monetary policy. The directors appoint or reappoint Reserve Bank presidents and first vice presidents to five-year terms, subject to approval of the Board of Governors. Directors appoint all officers of the Bank and the District's representative to the Federal Advisory Council.
Directors review their Reserve Bank’s budget and expenditures and are responsible for the internal audit program of the Bank.