Federal Reserve System January 8, 2021 – Federal Register Recent Federal Regulation Documents

The Board of Governors of the Federal Reserve System (``Board'') proposes to amend its Regulation D (Reserve Requirements of Depository Institutions) to eliminate references to an ``interest on required reserves'' rate and to an ``interest on excess reserves'' rate and replace them with a reference to a single ``interest on reserve balances'' rate. The Board also proposes to simplify the formula used to calculate the amount of interest paid on balances maintained by or on behalf of eligible institutions in master accounts at Federal Reserve Banks, and to make other conforming changes.