Final Rule Revising Definitions of Key Terms Under Regulation D that Govern Reserve Requirements Summary

Updated 07/07/2021

his tool summarizes the Board of Governors of the Federal Reserve System Final Rule that Revises Regulation D to Better Reflect the Current Economic Conditions and Needs and the Direction of Monetary Policy.
Interest on Required Reserves (IORR) and Interest on Excess Reserves (IOER) are terms replaced with a new, single definition, Interest on Reserve Balance Rate (IORB).
The interest paid on reserve balances will now be determined by applying the rate to the principal amount of the reserves, instead of by using specific formulas for certain balance types currently used to determine the interest credited under Regulation D.
The distinction between transaction and savings deposits will now be determined in accordance with whether an account is a “master account,” with all other account types being non-transaction accounts, instead of having specific definitions for savings accounts that is currently provided under Regulation D.

Members Can Download This Tool

Login to Download

Not Yet a Member?

Our members enjoy:

On-demand regulatory guidance hotline – by chat, phone and email – available from anywhere, on any device – 7 am - 6 pm, M-F, Central time 

Research time saved daily & weekly across forms, checklists, and trainings — for every regulation

Hours of form-building and branding of bank documents saved; in some cases, even the budget of additional staff

A sounding board for support and reassessment when institutional goals or the regulatory environment changes

Access to attorneys and compliance specialists for risk modelling and decision-making in advance of large business decisions

The knowledge that C/A was created and owned by 30 State Bankers Association to provide bank compliance services to their membership organizations

Find out how a personalized team of attorneys and compliance professionals helps build targeted compliance strategies throughout your institution when you take our Live Membership Demo.

Become a Member