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Effective Date Set for FRB to Lower Reserve Requirement Ratios to Zero

A Federal Reserve Board ("FRB") final rule to "lower reserve requirement ratios on transaction accounts maintained at depository institutions to zero percent" was published in the Federal Register (see prior coverage). The final rule will go into effect on March 12, 2021.

Primary Sources

  1. Federal Register: Regulation D - Reserve Requirements of Depository Institutions

Related Articles

  • FRB Lowers Certain Reserve Requirements and Proposes Simplifying Interest Rate Formula

    The Federal Reserve Board amended regulations to “lower reserve requirement ratios on transaction accounts maintained at depository institutions to zero percent.” The FRB also proposed amendments to (i) create a new single "interest on reserve balances" rate and (ii) simplify the formula for payment of interest on balances.

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Tags

Regulated Activities
Reserve Requirements
Regulated Entities
Banking Entities
Regulated Products
Bank Products
Sub-Product
Regulation D - Reserve Requirement, Bank Deposits (CDs)
Body of Law
Banking Law
Jurisdiction
US - Federal
Organization
US Banking Regulators
Sub-Author
Federal Reserve Board