Business · June 2, 2021

Federal Reserve Board – Final Rule – Regulation D

Federal Reserve Board issues final rule amending Regulation D about interest on reserve balances.

WASHINGTON, DC (STL.News) The Federal Reserve Board announced on Tuesday the approval of a final rule amending Regulation D to eliminate references to interest on required reserves (IORR) rate and 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 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.