2005 Annual Report

Chicago Fed Highlights of 2005


One of the Bank's 2005 highlights was the
December opening of the new Detroit Branch building.

Economic Research and Programs

Chicago Fed economists conducted research in support of the monetary policy responsibilities of the Bank's President and Board of Directors, including special presentations on inflation expectations, the Delphi bankruptcy and housing prices.

• The department held 29 conferences throughout the District, and 22 Economic Research papers were accepted for publication in refereed journals.
• The Inflation Research Center sponsored important initiatives, among them a new measure of core inflationary pressures and a new approach to short-term inflation forecasting. The Center also organized a conference on price stability.

Financial Institution Supervision and Regulation

Supervision and Regulation improved core supervisory functions through enhanced risk analysis, staff development and operational processes.

• The department conducted more than 1100 examinations, inspections and off-site reviews. It strengthened its risk-assessment process, putting more focus on improving its analysis of the root causes of institutional risk.
• Supervision and Regulation employees spoke at conferences for the Institute of Internal Auditors, the American Bankers Association and the Bank Administration Institute. The department also organized a conference bringing together community bank CEOs from around the five-state region.

Financial Services

Seventh District cash and check processing performed well during the year.

• Seventh District check revenue goals were exceeded by 15% based upon volumes and increased usage of Check 21 image products.
• The Detroit Branch maintained strong performance while shifting its check-processing operations to Cleveland as part of the ongoing effort to consolidate and streamline Federal Reserve financial services.
• With the cooperation of the Secret Service, the U.S. Coast Guard and three other law enforcement agencies, the Detroit Branch moved more than $1 billion into its new state-of-the-art facility (see photo above left).
• The Midway Facility implemented a quality management program to help improve efficiency. Special attention was paid to managing float and developing Check 21 expertise.
• The Des Moines office sustained high productivity all year and scored well on performance and cost measures. In a key indicator of quality control, the internal error rate was among the lowest for check processing in the Federal Reserve System.

Customer Relations and Support Office (CRSO)

The national office at the Chicago Fed that provides support to Federal Reserve customers nationwide made progress in converting customers to FedLine Advantage, a new electronic access solution.

• More than 3,000 institutions were conducting transactions daily via FedLine Advantage by year-end.

Other Activities

• Money Smart Weeks held in Chicago and Detroit featured more than 700 events that provided financial education to more than 25,000 area consumers.
• Record attendance by Federal Reserve executives around the U.S. highlighted the System's annual leadership conference, which was developed and hosted by the Chicago Fed. The Bank also sponsored similar leadership training for other management staff.