What does it mean that the Federal Reserve monitors activity at the “institution level”?
To track cross–shipping, the Federal Reserve aggregates all of the orders and deposits that a chartered financial institution makes in a Federal Reserve Bank zone or sub–zone, even if this activity occurs under different 9–digit ABAs or 13–digit endpoints. Reserve Banks expect that an institution will use currency generated from one business channel to meet the needs of another channel (e.g., use $20s from the deposits of retail customers to fill ATM canisters rather than having the central vault deposit and the armored carrier order $20s).
