Regulation D: Reserve Requirements of Depository Institutions

Title:
Regulation D: Reserve Requirements of Depository Institutions
Subject: Interest on reserves
Agency: Federal Reserve
Status: Final rule
Summary:
The Board of Governors of the Federal Reserve System (“Board”) is amending Regulation D (Reserve Requirements of Depository Institutions) to revise the rate of interest paid on balances maintained to satisfy reserve balance requirements (“IORR”) and the rate of interest paid on excess balances (“IOER”) maintained at Federal Reserve Banks by or on behalf of eligible institutions. The final amendments specify that IORR is 2.10 percent and IOER is 2.10 percent, a 0.25 percentage point decrease from their prior levels. The amendments are intended to enhance the role of such rates of interest in moving the Federal funds rate into the target range established by the Federal Open Market Committee (“FOMC” or “Committee”).
FR Doc: 2019-17175
Date proposed:
Comments due date:

 

Final rule effective date: Rule amendments effective Aug. 12, 2019; IORR and IOER rate changes were applicable on Aug. 1, 2019
Rule compliance date:
Agency release:

Related Reg Report item(s):

Fed publishes cut in interest paid on Reg D reserves

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