November 1st, 2011
Econintersect: The Federal Reserve has a dual mandate in providing services to banks:
1) They must have a full cost recovery in the long run on services they provide. The average recovery between 2001 and 2010 was 97.9%. The actual cost recovery in 2010 was 105.% - while the estimated recovery is 102.3% in 2011 and 100.8% in 2012.
2) The Federal Reserve is also required to set prices high enough to allow other service providers to compete effectively with the Federal Reserve in providing similar services.
Follow up:Compared with the price index for 2011, the price index for all Reserve Bank priced services is projected to increase 4% in 2012. Click on images below to enlarge.
Note on the index below, the Federal Reserve's pricing is increasing at a faster rate than the GDP price index.
The link below leads to a PDF file with the full fee schedule and more backup detail to what was reported above.
source: Federal Reserve