DEFINITION of 'Reserve City Bank'

A bank that is found in any city that also has a Federal Reserve bank or Federal Reserve branch office. City banks are usually required to maintain higher account balance reserves than other banks.

BREAKING DOWN 'Reserve City Bank'

Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, Dallas and San Francisco all have Federal Reserve banks and, therefore, reserve city banks as well. Banks that are located outside cities with Federal Reserve banks are called country banks.

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