The Federal Reserve Bank of Chicago is one of twelve regional Reserve Banks that, along with the Board of Governors in Washington, DC, make up the nation's central bank . The Chicago Reserve Bank serves the Seventh Federal Reserve District, which encompasses the northern portions of Illinois and Indiana , southern Wisconsin , the Lower Peninsula of Michigan , and the state of Iowa . In addition to participation in the formulation of monetary policy, each Reserve Bank supervises member banks and bank holding companies , provides financial services to depository institutions and the US government, and monitors economic conditions in its District.