Natural disasters and severe weather events can strike with little warning, threatening the continuity of essential financial services that communities depend on. A well-executed contingency response protects both the institution and customers who depend on it. Federal Reserve Financial Services (FRFS) provides comprehensive resources and protocols to help financial institutions maintain operations when disruptions occur, which can help customers retain access to critical banking services regardless of conditions.
Essential preparation steps
Financial institutions can take several concrete actions now to prepare for potential disruptions:
- Update and verify critical contact information:
- Review and annually update contact information with the Federal Reserve Banks, including:
- Official Authorization List (OAL)
- FedLine® End User Authorization Contacts (EUACs)
- FedLine Subscribers
- Review and annually update contact information with the Federal Reserve Banks, including:
- Review business continuity resources
- Bookmark the Service Status page on FRBservices.org® to stay abreast of the operational status of Federal Reserve Bank Services
- Review the Business Continuity Resource Center for detailed FRFS continuity plans
- Use the Find Your Contacts search feature on the Contact page to create a customized directory based on routing transit number
- Print critical telephone numbers and contingency instructions for staff distribution
- Test contingency backups
- Verify the accuracy of agreements and test contingency backups, particularly for service areas most critical to operations:
- Fedwire® Funds Service transfers
- FedCash® Services
- FedACH® Services
- Check Services
- FedNow® Service
- Verify the accuracy of agreements and test contingency backups, particularly for service areas most critical to operations:
- Train staff regularly
Host regular training sessions to ensure employees understand procedures for potential service disruptions. Senior management should keep readily accessible the telephone numbers for regulatory agencies, the Support Center and Federal Reserve relationship managers.
During an event: Critical communication steps
When a storm or disaster threatens operations, timely communication is essential.
Prepare before mandatory evacuation
If an institution elects to close before a mandatory evacuation order, contact the Support Center via email or at (833) 377-7827 to provide:
- Instructions for handling ACH and check items
- Arrangements for alternative receiving points and sending
Monitor accounts continuously
Accounting and settlement dollars for transactions will continue to flow to accounts even if work is held or redirected. Institutions must monitor accounts and maintain sufficient balances using:
- FedLine Web® Solution for account monitoring
- Formalized FedLine Web certificates and FedLine Advantage® Solution procedures activated at contingency sites
Address currency and coin needs
Contact FedCash Services at the local Federal Reserve Office to discuss special orders or operating needs for currency and coin.
After the event: Resuming operations
Once an institution resumes operations at its primary site or a contingency location, provide the Support Center with:
- Current operational status
- Business resumption information
- Instructions for handling checks and FedACH transactions
Addressing contaminated currency and coin
Natural disasters can result in currency and coin that have been contaminated by water, mold, chemicals or other materials. Financial institutions should contact their local Federal Reserve Bank office for guidance on handling and returning contaminated currency and coin following proper protocols.
