Press Release

March 06, 2019 Federal Reserve Board issues advance notice of proposed rulemaking seeking public comment on whether to amend Regulation D to lower certain interest rates paid on balances at Federal Reserve Banks For release at 12:00 p.m. EST Share The Federal Reserve Board on Wednesday invited public comment on whether it should propose amendments to its Regulation D (Reserve Requirements of Depository Institutions) to lower the rate of interest paid on excess balances ("IOER") maintained at Reserve Banks by eligible institutions that hold a very large proportion of their assets in the form of balances at Reserve Banks. As set forth in the advance notice of proposed rulemaking, these narrowly focused depository institutions ("Pass‑Through Investment Entities" or "PTIEs") could attract a very large quantity of deposits from institutional investors, yet at the same time avoid the costs borne by other depository institutions, such as the costs of capital requirements and the other elements of federal regulation and supervision, because of the limited scope of their product offerings and asset types. The advance notice of proposed rulemaking requests comment on the potential benefits and potential costs associated with the presence of such institutions in the U.S. financial system and their receipt of IOER on their balances at a Reserve Bank. Comments are due within sixty days after the date of publication of the ANPR in the Federal Register, which is expected shortly. For media inquiries, call 202-452-2955. Federal Register notice HTML Related Content Board Votes

Federal Reserve (2019, March 5). Press Release. Press Releases, Federal Reserve. https://whenthefedspeaks.com/doc/press_release_20190306_federal_reserve_board_announces_approval_of

@misc{wtfs_press_release_20190306_federal_reserve_board_announces_approval_of,
  author = {Federal Reserve},
  title = {Press Release},
  year = {2019},
  month = {Mar},
  howpublished = {Press Releases, Federal Reserve},
  url = {https://whenthefedspeaks.com/doc/press_release_20190306_federal_reserve_board_announces_approval_of},
  note = {Retrieved via When the Fed Speaks corpus}
}