Regulatory Alerts2019-03-12 | 2019-04348Regulation D: Reserve Requirements of Depository Institutions
The Board of Governors of the Federal Reserve System issued an advance notice of proposed rulemaking to solicit comments on potential amendments to Regulation D regarding the interest rate paid on excess reserves. The Board is considering lowering the Interest on Excess Reserves rate for narrowly focused depository institutions that hold a very large proportion of their assets as balances at Reserve Banks. These entities, termed Pass-Through Investment Entities, are viewed as potentially complicating monetary policy implementation, disrupting financial intermediation, and posing risks to financial stability.
Share