As a result of these trends, the Reserve Banks' check-collection volume has declined. Since 1999, the number of checks collected through the Reserve Banks has fallen by about 30 percent. Consequently, the Reserve Banks have taken major steps to reduce check costs, including reducing the resources devoted to this service by transferring check-processing operations from some offices to more centralized locations. Today, twenty-two offices offer check processing, down from forty-five just three years ago.
Other Reserve Bank services have been undergoing consolidation as well... The Reserve Banks have found it more efficient to have a few central offices perform certain internal support and back-office services--such as managing information technology and payroll--rather than having each Bank conduct them individually. This trend toward consolidation of operations has precipitated significant structural changes at the Reserve Banks. Staff levels have been reduced throughout the System. Several Reserve Bank Branch offices now have, or soon will have, no remaining financial services operations...