Regulatory Alerts2022-11-17 | 2022-25082Regulation D: Reserve Requirements of Depository Institutions
The Board of Governors of the Federal Reserve System issued a final rule amending Regulation D to raise the interest rate on reserve balances (IORB) to 3.90 percent. This 0.75 percentage point increase, effective November 3, 2022, aligns with the Federal Open Market Committee's decision to raise the federal funds rate target range to 3.75 to 4 percent. The Board determined that immediate implementation was necessary to maintain the federal funds rate within the target range and dispensed with standard notice and comment procedures under the Administrative Procedure Act.
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