Search Results for keywords:"Regulation D"

Found 4 results

Search Results: keywords:"Regulation D"

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  • 2020-28755 — Regulation D: Reserve Requirements of Depository Institutions
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    Type:Proposed Rule
    Citation:86 FR 1303
    Reading Time:about 15 minutes

    The Board of Governors of the Federal Reserve System has proposed changes to Regulation D, which affects how banks manage reserve balances. They aim to simplify the process by removing separate rates for required and excess reserves and introducing a single rate called "interest on reserve balances." The proposed changes also include revising how interest is calculated on reserves and excess balance accounts. The Board is seeking public comments on these proposed amendments until March 9, 2021.

    Simple Explanation

    The government wants to change how banks earn interest when they keep money safely with the big bank in charge. They're making it simpler by having just one rule for paying interest instead of two, but they still need to figure out how this change will make everything fair and easy for all banks, big or small.

  • 2020-28756 — Regulation D: Reserve Requirements of Depository Institutions
    Type:Rule
    Citation:86 FR 8853
    Reading Time:about 4 minutes

    The Board of Governors of the Federal Reserve System has finalized a rule that lowers reserve requirement ratios on transaction accounts at depository institutions to zero percent. This change, effective March 12, 2021, marks a shift toward an "ample reserves" regime and removes reserve requirements, aiming to support lending to households and businesses. The interim rule, first published in March 2020, received no public comments, leading to its adoption without changes. The rule is compliant with relevant legal frameworks, including the Administrative Procedure Act and the Paperwork Reduction Act.

    Simple Explanation

    The Federal Reserve decided that banks no longer need to keep a portion of their money in reserve, allowing them to use all of it to help people and businesses. This makes it easier for banks to give more loans, but some people think it might cause issues because it wasn’t explained very clearly.

  • 2025-00430 — Regulation D: Reserve Requirements of Depository Institutions
    Type:Rule
    Citation:90 FR 3615
    Reading Time:about 6 minutes

    The Board of Governors of the Federal Reserve System has made changes to Regulation D by reducing the interest rate paid on balances (IORB) at Federal Reserve Banks to 4.4 percent from the previous 4.65 percent. This amendment was effective on December 19, 2024, and aims to help maintain the federal funds rate within the desired target range. The Board found it necessary to forego usual notice and comment procedures, citing the importance of prompt action in the public interest. Additionally, the rule is not subject to the Regulatory Flexibility Act or the Paperwork Reduction Act since no general notice of proposed rulemaking was required.

    Simple Explanation

    The government decided to lower the interest it gives to banks for keeping their money safe, from 4.65% to 4.4%, to help control how easy it is for people to borrow and spend money. They made this change quickly without asking the public first, because they thought it needed to happen soon.

  • 2020-29028 — Agency Information Collection Activities: Announcement of Board Approval Under Delegated Authority and Submission to OMB
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    Type:Notice
    Citation:86 FR 92
    Reading Time:about 30 minutes

    The Board of Governors of the Federal Reserve System is making changes to financial reporting requirements for holding companies and Edge corporations. These updates include revising the definitions and reporting instructions related to savings deposits and including new temporary data items associated with the CARES Act and the Paycheck Protection Program Liquidity Facility (PPPLF). The Board also plans to address concerns about consistency across different reports, such as ensuring that savings deposits are consistently classified in the Call Report and other financial statements. Additionally, they have issued clarifications for recording uncollectible accrued interest, shared fees from securities-related activities, and pledged equity securities.

    Simple Explanation

    The Federal Reserve is updating the rules on how certain companies report money and bank-related information. They're also adding some temporary questions to understand how these companies are handling loans connected to a recent government support program.