FED – FED issues final rule amending Regulation D with regard to interest on reserve balances

The FED announced on Tuesday the approval of a final rule amending Regulation D to eliminate references to an interest on required reserves (IORR) rate & to an interest on excess reserves (IOER) rate & 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 & makes other minor conforming amendments. The final rule adopts the rule proposed by the Board on January 8, 2021 without change, & takes effect on Thursday, July 29, 2021.

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