§333 Mutual Savings Banks; Application and Admission to Membership in Federal Reserve System

Summary

Mutual savings banks with no capital stock can join the Federal Reserve System if they have surplus and undivided profits at least equal to the capital needed to open a national bank in the same town. They apply and join in the same way as state banks and trust companies. Each such bank must buy Federal Reserve Bank stock equal to 0.6% of its total deposit liabilities based on its most recent exam report. That amount is adjusted twice a year under rules from the Federal Reserve Board. If state law forbids buying the stock, the bank must deposit the same amount with the Federal Reserve instead, and that deposit is adjusted twice a year and paid interest like dividends. If state law later allows stock purchases, the bank must buy the stock and use its deposit toward the purchase. If the state law is not changed by the next legislative session, or the bank does not buy the stock within six months after a law change, the bank loses its membership. Such savings banks must follow the same laws and Fed rules that apply to state member banks and trust companies, except for the special stock rules above.