Social Governance

Federal Reserve Bank of New York Elects IBM Chairman to its Board of Directors

Published on: 5 May 2022 06:02 PM
by KnowESG

Arvind Krishna, Chairman and Chief Executive Officer of IBM, has been elected to the Federal Reserve Bank of New York's Board of Directors. Krishna was elected as a Class B director of the Federal Reserve Bank of New York, serving the public with due but not exclusive attention to the interests of agriculture, trade, industry, services, labour, and consumers.

In his current and previous roles, Mr Krishna has managed the development and expansion of new markets for IBM in the cloud, artificial intelligence, blockchain, and quantum computing. Because of these new technologies, he's also been a big part of making new IBM products and solutions better than ever before.

Krishna served as senior vice president of Cloud and Cognitive Software. He holds an undergraduate degree from the Indian Institute of Technology, Kanpur, and a PhD from the University of Illinois at Urbana-Champaign. He was also the general manager of IBM Systems and Technology Group's development and manufacturing organisation and the leader of IBM Research.

The Federal Reserve Bank of New York works within the Federal Reserve System and with other public and private sector institutions to promote the economic and financial systems of the United States' safety, soundness, and vibrancy. It is one of the 12 regional reserve banks that make up the Federal Reserve System.

The Federal Reserve Act of 1913 mandates that each of the reserve banks be governed by a board of directors. Each reserve bank has nine directors who represent the interests of their reserve district and whose experience helps the reserve banks fulfil their policy and operational obligations.

Each reserve bank's nine directors are evenly divided by classification: three Class A directors represent the district's member banks; three Class B directors and Class C directors each represent the public's interests.

Reserve bank directors serve as a vital link between the Federal Reserve and the private sector, ensuring that the Fed's monetary policy decisions are guided by current economic conditions.

The Second Federal Reserve District, which comprises New York state, the 12 northern counties of New Jersey, Fairfield County in Connecticut, Puerto Rico, and the United States Virgin Islands, is overseen by the New York Fed. Although it serves a small geographical region in comparison to other Federal Reserve Banks, the New York Fed is the largest reserve bank in terms of assets and volume of activity.

Source: The Economic Times