Federal Reserve Board issues Final Rule amending Regulation D with regard to Interest on Reserve Balances | site |

(Information contained in Board of Governors of the Federal Reserve System press release dated: June 2, 2021)

The Federal Reserve Board announced on Tuesday the approval of a final rule amending Regulation D to eliminate references to an interest on required reserves (IORR) rate and to an interest on excess reserves (IOER) rate and replace them with a single interest on reserve balances (IORB) rate. The final rule also simplifies the formula used to calculate the amount of interest to be paid on such balances and makes other minor conforming amendments. The final rule adopts the rule proposed by the Board on January 8, 2021 without change, and takes effect on Thursday, July 29, 2021.

Federal Register notice: Regulation D: Reserve Requirements of Depository Institutions