Changeflow GovPing Banking & Finance Waller Proposes Consolidating Fed HR, IT Across...
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Waller Proposes Consolidating Fed HR, IT Across Reserve Banks

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Summary

Federal Reserve Governor Christopher Waller proposed consolidating core internal functions such as HR and IT across the 12 Reserve Banks rather than each operating independently. Speaking at the Brookings Institution, Waller outlined two scenarios: maintaining the current 12-bank footprint while centralizing leadership, or physically relocating operations to lower-cost cities. The proposal aims to reduce operating costs through integration and standardization.

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What changed

Fed Governor Christopher Waller outlined two scenarios for streamlining the Federal Reserve's internal operations. The first scenario keeps the 12 Reserve Banks' footprint intact but places functions such as payroll, HR, vendor payments, and IT under a single system-wide leader. The second scenario involves physically relocating these functions to a small number of operation centers in low-cost cities, with the possibility of outsourcing some functions. Waller argued that platform-based, technology-driven functions are not delivered better with geographic dispersion and improve with integration, scale, and standardization.

For financial institutions and compliance professionals, this proposal offers early insight into potential organizational changes at the Federal Reserve that could affect how Reserve Banks interact with member banks. The proposal remains conceptual and has no immediate compliance implications. Institutions should monitor for any formal Fed study or congressional action following this proposal.

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Apr 22, 2026

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April 21, 2026 Reading Time: 1 min read
Fed Governor Christopher Waller speaking at the Brookings Institution.
Federal Reserve Governor Christopher Waller today proposed that the central bank consolidate core functions such as human resources and IT across the 12 Reserve Banks instead of each bank being responsible for its own operations.

Speaking at the Brookings Institution in Washington, D.C., Waller outlined two scenarios for a streamlined Fed system. Functions such as payroll, HR, vendor payments and IT are increasingly platform-based, technology-driven and scale-sensitive, he said.

“These functions are not delivered better or more efficiently with geographic dispersion,” Waller said. “Nor are they unique to a district. They improve with integration, scale and standardization. With that comes lower operating costs, risk reduction and greater savings for the American taxpayer.”

The first scenario outlined by Waller leaves the footprint of the 12 Reserve Banks largely intact but places each operational function under a single leader for the entire Fed system.

The second scenario would physically relocate the functions at each Reserve Bank to a small number of operation centers in low-cost cities. Waller also said the Fed could look into outsourcing some functions.

“It’s hard to justify a lot of expensive labor just because you’re in a high-cost city,” Waller said during a Q&A.

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Last updated

Classification

Agency
ABA
Published
April 21st, 2026
Instrument
Notice
Branch
Independent
Legal weight
Non-binding
Stage
Final
Change scope
Minor

Who this affects

Applies to
Banks Government agencies
Industry sector
5221 Commercial Banking
Activity scope
Regulatory proposal Internal operations
Geographic scope
United States US

Taxonomy

Primary area
Banking
Operational domain
Compliance
Topics
Government Contracting

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