Regulation D: Reserve Requirements of Depository Institutions
|Subject:||Interest on reserves|
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 1.10 percent and IOER is 1.10 percent, a 0.50 percentage point decrease from their prior levels. The amendments are intended to enhance the role of such rates of interest in maintaining the Federal funds rate in the target range established by the Federal Open Market Committee (“FOMC” or “Committee”).
|Comments due date:||
|Final rule effective date:||Effective March 10, 2020; the IORR and IOER rate changes were applicable on March 4, 2020|
|Rule compliance date:|
|Related Reg Report item(s):|