FRB Requests Comments on Proposed Amendments to Regulation D

The Board of Governors of the Federal Reserve System ("FRB") announced its request for comments on proposed amendments to Regulation D ("Reserve Requirements of Depository Institutions"). The amendments concern the calculation of interest payments on certain balances maintained by depository institutions at Federal Reserve Banks.

Specifically, the proposal would amend Regulation D to calculate interest payments to depository institutions with excess balances on the daily effective rate of interest paid on excess balances (the "IOER rate") and the daily level of balances, rather than the average IOER rate and level of excess balances over the maintenance period.

See: FRB Press Release.