FRB – Regulation D: Reserve Requirements of Depository Institutions

September 8, 2021 – The FRB has amended Regulation D, Reserve Requirements of Depository Institutions, to revise the rate of interest paid on balances maintained at Federal Reserve Banks by or on behalf of eligible institutions (IORB rate).

The final amendments specify that the IORB rate is 0.15 percent, an 0.05 percentage point increase from its prior level. The amendment is intended to establish the IORB rate at a level consistent with maintaining the Federal funds rate in the target range established by the Federal Open Market Committee.

This amendment does not reflect a change in the stance of monetary policy. The Board is also making certain conforming deletions for clarity to the provisions of Regulation D governing interest payable on balances at Reserve Banks.

Effective date: The amendments to part 204 (Regulation D) are effective September 8, 2021.
Applicability date: The IORB rate change was applicable on July 29, 2021.

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