Interest on excess reserves - Revision history

imported>Doug Williamson: Add links.

2020-06-08T19:48:06Z

Add links.

← Older revision		Revision as of 19:48, 8 June 2020
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	==See also==		==See also==
			* [[Effective lower bound]]
	* [[Federal Open Market Committee]]		* [[Federal Open Market Committee]]
	* [[Reserve requirements]]		* [[Reserve requirements]]
	* [[Reserves]]		* [[Reserves]]
			* [[Zero lower bound]]

	[[Category:Long_term_funding]]		[[Category:Long_term_funding]]
	[[Category:Compliance_and_audit]]		[[Category:Compliance_and_audit]]

imported>Doug Williamson: Amended spelling of depository.

2018-02-08T11:23:48Z

Amended spelling of depository.

← Older revision		Revision as of 11:23, 8 February 2018
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	(IOER).		(IOER).

	Regulated commercial banks and other ~~depository~~ institutions are generally required to hold minimum levels of deposits with their central bank, in relation to their liabilities or for other regulatory reasons.		Regulated commercial banks and other depositary institutions are generally required to hold minimum levels of deposits with their central bank, in relation to their liabilities or for other regulatory reasons.

	These central bank deposits are known as 'reserves'.		These central bank deposits are known as 'reserves'.
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	In the US the Federal Reserve introduced a policy, its 'IOR policy', of paying interest on monetary institutions deposits ('reserves') in October 2008 and both required and excess reserves are remunerated.		In the US the Federal Reserve introduced a policy, its 'IOR policy', of paying interest on monetary institutions deposits ('reserves') in October 2008 and both required and excess reserves are remunerated.

	The Financial Services Regulatory Relief Act of 2006 authorised payment of interest on balances of or on behalf of ~~depository~~ institutions beginning October 1, 2011 but the Emergency Economic Stabilization Act of 2008 accelerated the effective date to October 1, 2008.		The Financial Services Regulatory Relief Act of 2006 authorised payment of interest on balances of or on behalf of depositary institutions beginning October 1, 2011 but the Emergency Economic Stabilization Act of 2008 accelerated the effective date to October 1, 2008.

imported>Doug Williamson: Layout.

2016-12-18T12:22:37Z

Layout.

← Older revision		Revision as of 12:22, 18 December 2016
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	(IOER).		(IOER).


	Regulated commercial banks and other depository institutions are generally required to hold minimum levels of deposits with their central bank, in relation to their liabilities or for other regulatory reasons.		Regulated commercial banks and other depository institutions are generally required to hold minimum levels of deposits with their central bank, in relation to their liabilities or for other regulatory reasons.

imported>Doug Williamson: Layout.

2016-05-11T10:28:45Z

Layout.

← Older revision		Revision as of 10:28, 11 May 2016
Line 1:		Line 1:
	(IOER).		(IOER).


	Regulated commercial banks and other depository institutions are generally required to hold minimum levels of deposits with their central bank, in relation to their liabilities or for other regulatory reasons.		Regulated commercial banks and other depository institutions are generally required to hold minimum levels of deposits with their central bank, in relation to their liabilities or for other regulatory reasons.

	These central bank deposits are known as 'reserves'.		These central bank deposits are known as 'reserves'.


	In some cases, these deposits of the commercial banks with the central bank may be greater than the minimum level required by the regulations.		In some cases, these deposits of the commercial banks with the central bank may be greater than the minimum level required by the regulations.
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	Payment of interest on excess balances means that banks are less likely to lend central bank deposits ([[reserves]]) among themselves (in 'interbank' or (US) 'federal funds' transactions) at rates below the rate paid on the excess. Varying the interest rate on excess reserves, then, allows the central bank to influence short-term rates in the economy generally.		Payment of interest on excess balances means that banks are less likely to lend central bank deposits ([[reserves]]) among themselves (in 'interbank' or (US) 'federal funds' transactions) at rates below the rate paid on the excess.

			Varying the interest rate on excess reserves, then, allows the central bank to influence short-term rates in the economy generally.


			In the US the Federal Reserve introduced a policy, its 'IOR policy', of paying interest on monetary institutions deposits ('reserves') in October 2008 and both required and excess reserves are remunerated.

	In the US the Federal Reserve introduced a policy, its 'IOR policy', of paying interest on monetary institutions deposits ('reserves') in October 2008 and both required and excess reserves are remunerated. The Financial Services Regulatory Relief Act of 2006 authorised payment of interest on balances of or on behalf of depository institutions beginning October 1, 2011 but the Emergency Economic Stabilization Act of 2008 accelerated the effective date to October 1, 2008.		The Financial Services Regulatory Relief Act of 2006 authorised payment of interest on balances of or on behalf of depository institutions beginning October 1, 2011 but the Emergency Economic Stabilization Act of 2008 accelerated the effective date to October 1, 2008.

imported>Doug Williamson: Standardise punctuation.

2015-08-11T15:40:24Z

Standardise punctuation.

← Older revision		Revision as of 15:40, 11 August 2015
Line 10:		Line 10:


	Payment of interest on excess balances means that banks are less likely to lend central bank deposits ([[reserves]]) among themselves (in "interbank" or (US) "federal funds" transactions) at rates below the rate paid on the excess. Varying the interest rate on excess reserves, then, allows the central bank to influence short-term rates in the economy generally.		Payment of interest on excess balances means that banks are less likely to lend central bank deposits ([[reserves]]) among themselves (in 'interbank' or (US) 'federal funds' transactions) at rates below the rate paid on the excess. Varying the interest rate on excess reserves, then, allows the central bank to influence short-term rates in the economy generally.

	In the US the Federal Reserve introduced a policy, its 'IOR policy', of paying interest on monetary institutions deposits ("reserves") in October 2008 and both required and excess reserves are remunerated. The Financial Services Regulatory Relief Act of 2006 authorised payment of interest on balances of or on behalf of depository institutions beginning October 1, 2011 but the Emergency Economic Stabilization Act of 2008 accelerated the effective date to October 1, 2008.		In the US the Federal Reserve introduced a policy, its 'IOR policy', of paying interest on monetary institutions deposits ('reserves') in October 2008 and both required and excess reserves are remunerated. The Financial Services Regulatory Relief Act of 2006 authorised payment of interest on balances of or on behalf of depository institutions beginning October 1, 2011 but the Emergency Economic Stabilization Act of 2008 accelerated the effective date to October 1, 2008.

imported>Doug Williamson: Link with Reserve requirements and Reserves pages.

2015-08-11T15:39:21Z

Link with Reserve requirements and Reserves pages.

← Older revision		Revision as of 15:39, 11 August 2015
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	(IOER).		(IOER).

	~~The practice of central~~ banks ~~of paying interest on deposits from~~ depository institutions ~~(notably commercial banks) that~~ are ~~in excess of amount of deposits that the bank may be~~ required to hold ~~(together~~ with ~~cash)~~ in ~~view of its~~ liabilities or for other regulatory reasons.		Regulated commercial banks and other depository institutions are generally required to hold minimum levels of deposits with their central bank, in relation to their liabilities or for other regulatory reasons.

			These central bank deposits are known as 'reserves'.

			In some cases, these deposits of the commercial banks with the central bank may be greater than the minimum level required by the regulations.

			When the central bank pays interests on such deposits, this interest is known as 'interest on excess reserves'.


	Payment of interest on excess balances means that banks are less likely to lend central bank deposits ([[reserves]]) among themselves (in "interbank" or (US) "federal funds" transactions) at rates below the rate paid on the excess. Varying the interest rate on excess reserves, then, allows the central bank to influence short-term rates in the economy generally.		Payment of interest on excess balances means that banks are less likely to lend central bank deposits ([[reserves]]) among themselves (in "interbank" or (US) "federal funds" transactions) at rates below the rate paid on the excess. Varying the interest rate on excess reserves, then, allows the central bank to influence short-term rates in the economy generally.

	In the US the Federal Reserve introduced a policy, its "IOR policy", of paying interest on monetary institutions deposits ("reserves") in October 2008 and both required and excess reserves are remunerated. The Financial Services Regulatory Relief Act of 2006 authorised payment of interest on balances of or on behalf of depository institutions beginning October 1, 2011 but the Emergency Economic Stabilization Act of 2008 accelerated the effective date to October 1, 2008.		In the US the Federal Reserve introduced a policy, its 'IOR policy', of paying interest on monetary institutions deposits ("reserves") in October 2008 and both required and excess reserves are remunerated. The Financial Services Regulatory Relief Act of 2006 authorised payment of interest on balances of or on behalf of depository institutions beginning October 1, 2011 but the Emergency Economic Stabilization Act of 2008 accelerated the effective date to October 1, 2008.


	==See also==		==See also==
	* [[Federal Open Market Committee]]		* [[Federal Open Market Committee]]
			* [[Reserve requirements]]
			* [[Reserves]]

	[[Category:Long_term_funding]]		[[Category:Long_term_funding]]
	[[Category:Compliance_and_audit]]		[[Category:Compliance_and_audit]]

imported>Doug Williamson: Updated entry: Added link to Federal Open Market Committee

2015-01-14T10:24:49Z

Updated entry: Added link to Federal Open Market Committee

← Older revision		Revision as of 10:24, 14 January 2015
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	In the US the Federal Reserve introduced a policy, its "IOR policy", of paying interest on monetary institutions deposits ("reserves") in October 2008 and both required and excess reserves are remunerated. The Financial Services Regulatory Relief Act of 2006 authorised payment of interest on balances of or on behalf of depository institutions beginning October 1, 2011 but the Emergency Economic Stabilization Act of 2008 accelerated the effective date to October 1, 2008.		In the US the Federal Reserve introduced a policy, its "IOR policy", of paying interest on monetary institutions deposits ("reserves") in October 2008 and both required and excess reserves are remunerated. The Financial Services Regulatory Relief Act of 2006 authorised payment of interest on balances of or on behalf of depository institutions beginning October 1, 2011 but the Emergency Economic Stabilization Act of 2008 accelerated the effective date to October 1, 2008.


			==See also==
			* [[Federal Open Market Committee]]

	[[Category:Long_term_funding]]		[[Category:Long_term_funding]]
	[[Category:Compliance_and_audit]]		[[Category:Compliance_and_audit]]

imported>John Grout: Insert missing ), delete duplicated words, refer to Fed's IOR policy.

2014-08-25T12:30:14Z

Insert missing ), delete duplicated words, refer to Fed's IOR policy.

← Older revision		Revision as of 12:30, 25 August 2014
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	The practice of central banks of paying interest on deposits from depository institutions (notably commercial banks) that are in excess of amount of deposits that the bank may be required to hold (together with cash) in view of its liabilities or for other regulatory reasons.		The practice of central banks of paying interest on deposits from depository institutions (notably commercial banks) that are in excess of amount of deposits that the bank may be required to hold (together with cash) in view of its liabilities or for other regulatory reasons.

	Payment of interest on excess balances means that banks are less likely to lend central bank deposits among themselves (in "interbank" or (US) "federal funds" transactions at rates below the rate paid on excess ~~reserves~~. Varying the interest rate on excess reserves, then, allows the central bank~~, then,~~ to influence short-term rates in the economy generally.		Payment of interest on excess balances means that banks are less likely to lend central bank deposits ([[reserves]]) among themselves (in "interbank" or (US) "federal funds" transactions) at rates below the rate paid on the excess. Varying the interest rate on excess reserves, then, allows the central bank to influence short-term rates in the economy generally.

	[[Category:~~Bank_Lending~~]]		In the US the Federal Reserve introduced a policy, its "IOR policy", of paying interest on monetary institutions deposits ("reserves") in October 2008 and both required and excess reserves are remunerated. The Financial Services Regulatory Relief Act of 2006 authorised payment of interest on balances of or on behalf of depository institutions beginning October 1, 2011 but the Emergency Economic Stabilization Act of 2008 accelerated the effective date to October 1, 2008.
	[[Category:~~Regulation_and_Law~~]]
			[[Category:Long_term_funding]]
			[[Category:Compliance_and_audit]]

imported>John Grout: To correct incorrect entry and remove tendentious opinion.

2014-07-12T11:54:44Z

To correct incorrect entry and remove tendentious opinion.

← Older revision		Revision as of 11:54, 12 July 2014
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	(IOER).		(IOER).

	The ~~issue where~~ central banks ~~pay excess returns~~ on deposits from commercial banks~~, leading~~ to ~~a disincentive~~ to lend ~~into~~ the ~~[[real~~ economy]].		The practice of central banks of paying interest on deposits from depository institutions (notably commercial banks) that are in excess of amount of deposits that the bank may be required to hold (together with cash) in view of its liabilities or for other regulatory reasons.

			Payment of interest on excess balances means that banks are less likely to lend central bank deposits among themselves (in "interbank" or (US) "federal funds" transactions at rates below the rate paid on excess reserves. Varying the interest rate on excess reserves, then, allows the central bank, then, to influence short-term rates in the economy generally.

	[[Category:Bank_Lending]]		[[Category:Bank_Lending]]
	[[Category:Regulation_and_Law]]		[[Category:Regulation_and_Law]]

imported>Doug Williamson: Categorise page.

2013-11-09T13:46:27Z

Categorise page.

← Older revision		Revision as of 13:46, 9 November 2013
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	The issue where central banks pay excess returns on deposits from commercial banks, leading to a disincentive to lend into the [[real economy]].		The issue where central banks pay excess returns on deposits from commercial banks, leading to a disincentive to lend into the [[real economy]].

			[[Category:Bank_Lending]]
			[[Category:Regulation_and_Law]]