WASHINGTON—The Federal Reserve Board has issued a final rule on reserve requirement ratios on transaction accounts.
The final rule adopts without change the interim final rule issued by the Fed amending Regulation D to lower reserve requirement ratios on transaction accounts maintained at depository institutions to 0%.
CUNA said it fully supports the Federal Reserve Board eliminating reserve requirements for financial institutions.
The Federal Reserve Board also issued proposed amendments to Regulation D which would:
- Replace references to an "interest on required reserves" (IORR) rate and to an "interest on excess reserves" (IOER) rate with a single "interest on reserve balances" (IORB) rate
- 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