Regulatory Alerts2025-11-14 | 2025-19889Regulation D: Reserve Requirements of Depository Institutions
The Board of Governors of the Federal Reserve System has adopted final amendments to Regulation D to lower the interest rate on reserve balances (IORB) to 3.90 percent. This 0.25 percentage point decrease aligns with the Federal Open Market Committee's decision to reduce the federal funds rate target range to 3.75 to 4 percent. The amendment, effective November 14, 2025, with applicability dating back to October 30, 2025, aims to enhance the role of IORB in maintaining the federal funds rate within the established target range.
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