Regulatory Alerts2023-08-02 | 2023-16386Regulation 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 5.4 percent. This 0.25 percentage point increase, effective July 27, 2023, aligns with the Federal Open Market Committee's decision to raise the federal funds rate target range to 5¼ to 5½ percent. The Board dispensed with standard notice and comment procedures, citing good cause to ensure the prompt implementation of this monetary policy adjustment.
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