FRB – Final Rule – Reserve Requirements of Depository Institutions (Regulation D)

July 23, 2021 – The FRB 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 0.15 percent and IOER is 0.15 percent, a 0.05 percentage point increase from their prior levels. The amendments are intended to enhance the role of IORR and IOER in maintaining the Federal funds rate in the target range established by the Federal Open Market Committee.

Effective date:
The amendments to part 204 (Regulation D) are effective July 23, 2021.

Applicability date:
The IORR and IOER rate changes were applicable on June 17, 2021.

For more information, visit www.federalregister.gov.

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