Federal Reserve banks The government controls banks located in each of the 12 Federal Reserve districts, established by the Federal Reserve Act of 1913. The Board of Governors, working closely with the president and the U.S. Treasury, controls the Federal Reserve. The Federal Reserve system (through the 12 central banks) supervises and examines members’ commercial banks; clears and collects checks drawn on commercial banks; and may influence the cost, supply, and availability of money.
