In more conservative major financial centers like New York, Chicago, and Philadelphia, banks are required to maintain the highest reserve ratio, at 18%.
In medium-sized cities, this ratio is 15%.
These regulations naturally led to rural banks being reluctant to join the Federal Reserve System, which resulted in another consequence.
The Federal Reserve became a club for large banks!
But regardless, after the establishment of the Federal Reserve System, those banks that joined it became member banks of the Federal Reserve.
To ensure unity and mutual development among all.
William Harding, the second chairman of the Federal Reserve, established the tradition of holding annual meetings with all member banks to foster closer and broader cooperation.
At the same time, William Harding also advocated for distributing higher dividends to bring greater benefits to the member banks.
During William Harding's era, the annual meetings were held without fail, no matter the circumstances.
